After years of working in the startup trenches, what consistently amazes me is the resilience of founders who build companies without leaning on external funding. London’s Expedition Growth Capital clearly shares this admiration. Through their €323 million Fund III, they've committed to supporting bootstrapped software companies across Europe, a move I find both timely and strategic.
What stands out is their focus, founders with a "use" but not a "need" for capital. This simple premise flips the venture-backed startup narrative. Often, founders bootstrapping their businesses have already built profitable models, but they could grow even faster with backing that doesn’t come with the standard VC strings attached. That’s where Expedition steps in, offering meaningful support for growth, while founders remain in control.
The Anatomy of Fund III: What Makes It Special
Expedition Growth Capital, founded in 2020, raised this fund to the tune of €323 million, over half of which is reportedly from American investors. This international confidence in Europe’s bootstrapped founders is noteworthy in itself. These investments typically range from €8.6 million to €21.5 million and are designed to help companies scale to $50 million-plus recurring annual revenue, a significant milestone for any software business.
Let’s put this into perspective. The European venture ecosystem often caters well to early-stage businesses, but scaling, especially in the enterprise SaaS sector, comes with difficult gaps in funding. As a founder who has raised funds for my startups, I’ve seen too many promising companies plateau because they can’t access substantial capital as they approach mid-range growth.
Adding to their reputation, Expedition's approach seems rooted in respect for founders. They’ve built tools, including an AI-powered sourcing platform, to find these companies. Additionally, they provide operational expertise tailored to help bootstrapped leaders navigate scaling without compromising their vision. No “dollar first, decisions later” culture here.
Who Are These Founders?
Bootstrapped founders aren’t just resourceful, they’re hyper-efficient problem-solvers who have proven they can optimize a business model under constraints that would break most venture-funded startups. For instance, their operational decisions are guided by profitability rather than burn rates. Plus, many target niche markets, from AI-driven accounting tools to specialized SaaS for the manufacturing and energy sectors.
Some of Expedition’s standout European portfolio companies include:
- Dougs (France): An AI-powered accounting solution popular among small businesses.
- epilot (Germany): Streamlining workflows in energy/utilities sectors.
- Rentman (Netherlands): SaaS built for event and media productions.
Each has carved its niche without being propped up by million-dollar VC rounds. For these founders, Expedition offers that next step without forcing them into a one-size-fits-all growth plan.
How to Succeed Without Taking Venture Capital
If you’re considering a bootstrap-first approach, draw lessons from some of Expedition’s founding principles and portfolio companies. Here’s the roadmap:
- Focus on Revenue Early: Bootstrapped businesses succeed when they solve problems people are willing to pay for upfront. It’s not about shiny features; it’s about value.
- Maintain Lean Operations: Profits often come from disciplined resource allocation. Eliminate unnecessary tools, cut down overhead, and automate wherever possible.
- Prove Scalability Before Growth Funding: Companies backed by Expedition demonstrate scalability without depending on venture capital. This de-risks the investment and keeps founders in control.
- Stick to Your Niche: Broad appeal is rarely your initial goal. Many of Expedition’s successes dominate specific, high-value verticals like SaaS for niche industries or AI-enhanced tools for regulated environments.
- Build Processes Before Scaling: Chaos doesn’t scale well. As a bootstrapped founder myself, I learned the hard way that scaling without systems in place leads to costly inefficiencies later.
The investors, most of whom are US-based, are clearly betting on this thoughtful, frugal approach to company-building.
The Mistakes to Avoid
Failing to respect your company’s bootstrapped DNA while scaling is often a game-ender. Here are three errors I’ve observed too many times among founders who try to transition too quickly:
-
Overfunding Growth Without a Clear Path
Founders often overestimate the benefits of capital raises. It’s seductive to suddenly have cash, but spending it without discipline or a clear roadmap alienates your original team and costs you time. -
Pacing Expansion Too Aggressively
Not every market is ready for “next-level” campaigns or hiring sprees. Keep pace with demand and expand only when processes and cash flow align. -
Ignoring Operational Expertise
More capital shouldn’t mean you disregard the principles that got you this far. Expedition’s portfolio companies succeed partly because they are bootstrapped at heart, even post-funding.
Broader Trends Worth Noting
The focus on European enterprise software companies reflects a broader SaaS trend, vertical-specific tools combining expertise with AI-driven functionality. Let’s not forget, more than half of this Fund III's commitments came from the US. That speaks volumes about the perceived underappreciation of mid-level European startups.
The SaaS market dominated by vertical AI applications is highly relevant here. AI continues redefining profitability models, especially in specialized industries like accounting, logistics, and compliance. If you’re building in these spaces, chances are you’re tapping into trends Expedition and others are keen to fund.
Wrapping It Up
Expedition Growth Capital’s fundraising success makes me optimistic as a European entrepreneur. If you’re bootstrapped, by choice or necessity, this fund could signal a new chapter where scale-ready founders can access significant growth opportunities without sacrificing independence. Most importantly, you’re breaking the myth that only those who play the venture capital game win big.
For founders reading this, success isn’t only about raising millions of dollars but building a sustainable, scalable business. And if investors eventually knock at your door, you’ll be negotiating from a true position of power, one you earned with grit and focus, just like Expedition’s portfolio founders. Now, that’s a narrative worth celebrating.
FAQ
1. What is Expedition Growth Capital’s new Fund III about?
Expedition Growth Capital’s €323 million Fund III is aimed at bootstrapped European software companies, helping them scale without compromising control. Learn more about Fund III on EU-Startups
2. Who are Expedition Growth Capital’s target companies?
The fund focuses on bootstrapped software firms, often domain-specific, with proven scalability, leveraging capital for growth rather than survival. Discover their niche focus
3. What is the typical investment range for Fund III?
Expedition typically invests between €8.6 million to €21.5 million ($10 million–$25 million) per company, targeting scale-ups nearing $50 million ARR.
4. Why is Fund III significant?
Completed in just four months, Fund III is oversubscribed and includes over 50% of commitments from US investors, a strong indicator of international confidence in Europe’s bootstrapped tech ecosystem. Explore Fund III insights
5. What tools does Expedition use for sourcing companies?
Expedition uses an AI-powered platform to identify suitable bootstrapped software companies and ensure alignment with their focus on scalability and profitability.
6. Which prominent companies are part of Expedition’s portfolio?
Notable examples include Dougs (AI-powered accounting in France), epilot (digital workflows for the energy sector in Germany), and Rentman (event production SaaS in the Netherlands). Discover epilot’s success story
7. How does Expedition support portfolio founders beyond funding?
Expedition provides operational expertise, helping founders with scaling strategies while respecting their original vision.
8. What broader trends are reflected in Expedition’s investment approach?
The focus on vertical SaaS and enterprise AI aligns with a growing demand for industry-specific tech solutions redefining profitability models in Europe. See trends in vertical SaaS
9. Who leads Expedition Growth Capital and its strategy?
Oliver Thomas, Founder and Managing Partner of Expedition, emphasizes respecting bootstrapped founders and providing value-driven growth capital.
10. Why are US investors keen on European bootstrapped startups?
US investors see high growth potential in Europe’s software and AI companies, especially given their efficient operations and scalability without prior VC involvement. Understand the global appeal
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.