What is Backbone Ventures?
Backbone Ventures is an early-stage venture capital firm with roots in Zurich and Frankfurt am Main. Since its founding in 2018, it has carved out a unique space by investing primarily in pre-seed startups across Germany and Switzerland. Starting off without a formal fund, Backbone initially invested on a deal-by-deal basis, backing 26 teams over four years. These investments spanned not only Switzerland but also Germany, the US, and Israel. Fast forward to September 2022, and Backbone launched its Backbone Ventures 5502 Fund—a EUR 20 million pre-seed fund laser-focused on the DACH region, especially Germany and Switzerland.
Main Benefits and Key Facts
Backbone Ventures stands out for several reasons, and here are some key figures and facts that highlight its impact:
- Founded in 2018, with a track record of 28 investments and two successful exits so far.
- Backbone Ventures 5502 Fund totals EUR 20 million, dedicated to pre-seed investments.
- Geographical focus: Germany and Switzerland, with openness to the rest of Europe.
- Industry focus is broad, covering both B2B and B2C sectors.
- Special emphasis on underrepresented founders, including 1st and 2nd generation migrants, women in male-dominated fields, and founders from socioeconomically disadvantaged backgrounds.
- Committed to ethical behavior, hard work, keeping one’s word, and humbleness—values embodied in the fund’s name, “5502.”
The 5502 Fund: A Unique Approach
The 5502 Fund is more than just capital; it’s a statement. It’s the first VC fund in Germany and Switzerland that specifically targets 1st and 2nd generation migrant founders. While US funds have pioneered this approach years ago, Backbone noticed that in the DACH region, migrant founders were often seen through a charitable lens. Backbone asked, “Why stop there?” Women facing challenges in male-dominated environments and founders from disadvantaged socioeconomic backgrounds often share the same grit and resilience. This fund is designed to back those who have the character traits that make for successful entrepreneurs—regardless of background.
Investment Focus and Strategy
Backbone Ventures keeps its eyes on the prize by focusing on:
- Geography: Primarily Germany and Switzerland, but open to the broader European market.
- Founders: Prioritizing underprivileged and underrepresented founders who bring unique perspectives and determination.
- Industries: A broad spectrum, from B2B to B2C, allowing flexibility and diversity in portfolio companies.
- Stage: Pre-seed and seed rounds, supporting founders right at the start of their entrepreneurial journey.
This approach ensures that Backbone is not just investing money but fueling growth and success from the ground up.
What Backbone Looks for in Founders
Backbone Ventures is all about the people behind the ideas. The 5502 Fund aims to invest in the best founders—no matter their background. The focus on underrepresented founders is strategic, based on the belief that these entrepreneurs often possess the grit, resilience, and humbleness needed to succeed. But here’s the thing: if you don’t fit the typical “underrepresented” mold but still embody those traits, Backbone wants to meet you too. It’s about character, drive, and potential above all else.
Project Impact and Sustainable Development Goals (SDGs)
- SDG 8: Decent Work and Economic Growth – by supporting early-stage startups, Backbone promotes entrepreneurship and job creation.
- SDG 5: Gender Equality – through its focus on women founders in male-dominated industries.
- SDG 10: Reduced Inequalities – by investing in migrant founders and those from disadvantaged backgrounds.
- SDG 9: Industry, Innovation, and Infrastructure – fostering innovation across diverse sectors.
Backbone Ventures’ Vision for the Future
Backbone Ventures isn’t just about funding startups; it’s about building futures. With a pioneering investment approach and a strong ecosystem mindset, Backbone aims to create positive impact for the next generation. The goal? To be the trusted partner for founders and investors in the pre-seed and seed venture capital space across Germany and Switzerland. It’s about more than money—it’s about trust, support, and helping outstanding entrepreneurs reach new heights. And that’s a mission worth following.
