Our First Investment.

The first investment in a fund is always a special one, and this one even more so as it is the inception of our global platform. Welcome to the family, Anorak.

A core belief we have developed over the last two decades is the immense power of proprietary networks. We have learned this time and again in our portfolio. If you want to catch and build outliers over and over again, one thing holds true: some of the best ideas and proprietary learnings come from deeply organic, reciprocal human networks rather than short term transactional relationships. Besides community, access, or knowledge sharing, these ‘mafias’ also act as a complementary filter. In a world inundated with opportunities, the best way to get an investment done often isn't a pitch deck - while we all have fomo and review every deal possible coming our way - but being routed and amplified through trusted nodes in a platform’s networks speeds things up significantly.

Unique networks.

Our internal research shows that some 80% of all value in venture traces back to 20% of networks with identifiable founder (n) and peers (n+1 & n+2) networks. These networks come in various shapes and forms. They predominantly grow out of specific successful companies (e.g. Skype, Amazon, Wix, Oculus, Revolut, etc.), but can also be focused on very specific geographies or industry verticals.

Our conviction crystallized when we played with the data on our own portfolio from the last 25+ years. We identified this similar pattern for a large part of our founders: Around 50% of our home runs have emerged from our more mature proprietary networks. Naturally we have been chasing new future networks (the other 50%) which have constantly been forged along the way to join the next gen of unique networks. But we also learned something else from working with and analysing hundreds of own companies. Not all networks are cut the same way.

What we found is that these unique networks creating tens of outliers are extremely rare and specific. They share similar identifiable characteristics, run incredibly deep with a long lifecycle - they usually take around 5-10 years to build up, to then run for another 20+ years. Most often they create a particular ‘chain reaction’, meaning each network leads to multiple new ‘spin-off’ networks, creating outsized value for another 30+ years on their own again.

Mangrove VII. A global reach and community.

A few years ago, two trends became more and more visible: First, we witnessed the accelerated globalisation of venture investing and tech companies, especially since Covid. Second, several investors and partners asked us to grow our reach, which also implies growing your fund size. Besides our core belief around ‘a single vehicle, a single team, single aim’, we are also firm believers in reasonable fund sizes championed by small, reactive teams. After several years of back and forth, we did not only find conviction in the significant opportunity to expand reach, but also the unique ‘Mangrove way’ to do so - deeply anchored in our community approach and track, and in a disciplined manner. 

A key element of this network sleeve is to formally partner with the best investors operating successfully in distinct and complementary networks to us. This community not only extends our team and reach by >10x while keeping our core nimble, but also focuses on what matters most: consistent and amplified returns over the long term.

What gets me even more excited is the strong value add to our founders. We have always been believers in strong investor syndicates and ‘clans’ across rounds. If done well, the impact is substantial: Each partner steps up at critical times and does things for a company that others couldn’t do, at least so well... We have always been firm believers in designing rounds proactively as companies mature, bringing in the right partners at the right time.

Anorak. The El Segundo Mafia.

A few months back, my friend Owen introduced me to Greg Castle. From the first touchpoint, it was clear that he has the same human instinct as us. Greg is an entrepreneur-turned-VC who backed Oculus at its inception and wrote a seed check into Anduril, among others. Out of those companies grew one of the most productive ecosystems in tech today, and Anorak sits right at its heart. Our research suggests that it is the most invested fund across the numerous (n) and (n+1) alumni companies of these ‘mafias’.

The access is real, as is the performance. Tier 1 performance figures across two funds. All of which is topped by a recent selection to the Forbes 2026 Midas Seed list, backed by the 6 unicorns Greg has backed from seed.

A quick look at the portfolio tells the story better than any multiple could. Beyond backing Oculus as an angel and Anduril from the very start, Greg took up seed positions in Sesame, Heaviside, Onebrief, and Flock Safety, often emerging from previously backed circles and each now among the defining companies of its category. That is the pattern we look for: the power of successful networks, conviction, and continuous time investment just keep giving if played well. In typical Mangrove fashion, numbers alone never get us over the line, the human story needs to match.

What got us there is Greg himself. Speaking to founders, LPs, co-investors around him, one thing came up over and over again: his superpower is building strong relationships over the very long term. Partners like to come back to him. That is exactly what a proprietary network is. But, most importantly, he is simply a good guy we clicked with from the first conversation. In a real partnership designed to last decades, that is not just a nice-to-have.

The Mangrove Framework

We hold our network partners to the same standards we hold ourselves to. Conviction needs a method, so we assess every potential partner through the 'Mangrove framework'. From a initial universe of some 3,000+ funds we reviewed, around a third meet our baseline criteria. From there, we apply the insider signals we know drive outperformance from our own experience:

• Network depth and fit: A live insider position, not only desk research. We look for networks with real roots, deep, repeatable, complementary, and incredibly tough to replicate from the outside. We map every network quantitatively, tracking founder (or other principal network nodes such as geography or industry vertical) and n+1 nodes, investment density, and repeat-founder patterns across cycles. We catch network compounding years from the inside out. Our partners uniquely extend our reach, and are a critical part of the team.

• Performance and consistent liquidity cycles: A true understanding of what it means to drive strong returns consistently, balancing liquidity with long term upside efficiently.

• A disciplined strategy around fund size and ownership: Small funds and enough ownership in each position to matter. The same discipline and learnings we apply to ourselves, for our direct portfolio companies and our network investments.

• Just good humans: This is always a key deciding factor for us. Only deep relationships transcend capital to create value over the long run.

The Mangrove community. Partners for the long term.

One moment captured what we are building here; a few weeks back Greg texted me to tell me that his son Cade was born. I immediately called him back. That call relaunched our professional discussions we had a few weeks prior and allowed us to connect on several levels. These moments are special, and the interactions that followed gave us the final conviction to invest. This is what we mean when we say our partnerships are more than a transaction. They are long term relationships, built on the moments that matter. Great deals always follow.

Can't wait until we bring everyone, our founders, GPs, and LPs, together for our annual summit each year. 25 years in, these events have always been special and filled with greatness, and they are only getting started.

Last weekend, I was in Lithuania to spend time with friends from the industry. Here is a cool pic we took a few hundred meters away from the border with Kaliningrad - a special place that feels so close but far away at the same time. 

Life is awesome,

Yannick

With help from my colleague Denis Schwirtz.

European VC Global Europe