Tenet is a VC-cum-private equity play, investing in “AI roll-ups” across Europe, with an €80m first fund target.
A Berlin-based investment firm in the buzzy area of so-called “AI roll-ups” has emerged out of stealth, with an €80m target for its debut fund.
Tenet is set up by four executives with more than 25 years of investing experience across VC, growth capital, and private equity. Tenet is a VC-cum-private equity play, investing in “AI roll-ups” across Europe at the inception stage. The firm has raised around a third of its €80m target to date and plans to deploy cheques of around €5m.
Tenet has already made its first investment, investing €5m in Taxforce, an AI-native German tax advisory platform. An “AI roll-ups” strategy can be described as a company acquiring several companies in a service sector, such as accounting, IT or insurance, and then leveraging AI to make the acquired companies more efficient.
It can be likened to a private equity model in some respects. Major US VC firms like General Catalyst, Lightspeed and Thrive Capital are making plays in “AI roll-ups”. Tenet is hoping to capitalise on what it sees as the tech adoption shortfall in Europe.
It points to the major digital gap between the US and Europe, saying 60 per cent of small US businesses use vertical SaaS solutions, while adoption remains in the single digits in large parts of Europe.
Tenet backs founders at the inception stage to acquire and transform professional services businesses into scalable, AI-native platforms.
Martin Janicki, general partner, said: “SaaS has failed to reach the core of the European economy. While AI-powered productivity gains are real, they are currently hitting a wall of traditional sales methods and ineffectual implementation.
“We see a historic opportunity to solve our continent’s succession crisis at the exact point where the unstoppable force of AI meets the immovable object of the European SMB.”
Janicki, previously of Berlin-based VC Cavalry Ventures, set up Tenet, along with Alex Maly, previously of private equity firm Clearsight Investments, Sahil Patwa, previously of London-based investment firm Unbound, and Simon Lohmann, formerly of Atlantic Labs, the Berlin-based VC firm.
Maly adds: “AI roll-ups have been gaining attention as pioneering companies across Europe show remarkable progress. However, there is a realisation that neither classic private equity nor early-stage venture capital firms are the ideal launch pad for these platforms.
“Private equity mandates typically require substantial scale and debt leverage at entry, while traditional VC firms often lack the expertise for establishing a buy-and-build platform. Tenet is purpose-built to fill that specific void at inception.”
Tenet is also supported by a network of advisors, including the founders of European AI roll-ups such as Arbio, Buena, and Zinco.
