Tapestry VC Closes $80M Fund and Opens London Office

Friar has supported previous Tapestry funds and is described as a mentor to Murphy. Murphy characterised the raise as smooth, attributing this in part to returning investors. "It was a pretty straightforward process," he told Tech.eu.

The fund's growth reflects a broader trend of larger seed rounds. Murphy said the firm has scaled its cheque sizes over time, from roughly half a million dollars in its first fund to a million in its second, and now up to $3m when leading or co-leading seed rounds. He framed the increase as something a firm must earn: "You need to earn the right to be a bigger investment firm."

Betting on Repeat Founders

Tapestry typically backs immigrant founders and is positioning Fund III around what Murphy calls a "super cycle" among European repeat founders. He pointed to rising employment across such companies, citing figures that repeat founder-led startups employ more than two million people across some 23,000 companies.

The firm's track record includes investing in Nothing's seed round, backing video conferencing company Hopin at seed before its $7.75bn valuation, and supporting Fin ahead of its $3.6bn acquisition by Salesforce. Hopin's valuation later fell sharply following the pandemic.

Murphy said his decision to establish a London base followed a gradual shift in where he spends his time. As the European ecosystem matured, particularly around repeat founders, he began spending the majority of his time in the region. The firm now intends to be based primarily in London while helping portfolio companies expand into the United States.

What It Plans to Fund

Tapestry describes its approach as sector-agnostic, investing at pre-seed and seed stages across software, artificial intelligence, cybersecurity, fintech, autonomy and deep technology. It says it works with founders at the earliest stages, sometimes before a company formally exists, offering support on product direction, hiring and fundraising.

The firm expects to make around a dozen investments a year. Its transatlantic model, backing European founders while easing their path into US markets, underscores the deepening links between the two ecosystems that Tapestry is now positioning itself to serve.

Fresh rounds from Vienna, Stockholm and a speech-AI player point to deep-tech investor appetite — and platforms built to scale into emerging markets.