UK's Tapestry VC closes a €70m (US$80m) Fund III for repeat founders, co-anchored by the state British Business Bank

Summary

London-based Tapestry VC, an early backer of Nothing and Hopin, closed its third fund at €70m (about US$80m) on 30 June 2026, nearly tripling its prior €30m vehicle. The UK state-owned British Business Bank co-anchored with a €35m commitment, alongside returning LPs Railpen and Molten Ventures, with OpenAI CFO Sarah Friar among individual backers. The firm will back around 30 startups at initial cheques of US$1m to US$3m, targeting repeat founders across Europe and North America. Founder Patrick Murphy is relocating from San Francisco to open a flagship London office as part of the raise.

The split

US venture coverage frames the fund around its repeat-founder thesis and rising cheque sizes. European outlets lead instead with the British Business Bank's anchor stake, reading state capital as decisive for a European early-stage manager closing a fund in a tight LP market. The founder's move from San Francisco to London is itself the signal: European institutional money pulling talent back across the Atlantic.

By the numbers

• €70m (~US$80m), Fund III size.
• €30m, the prior fund, nearly tripled.
• €35m, the British Business Bank's co-anchor.
• ~30, startups targeted at US$1m to US$3m cheques.
• June 30, 2026, close.

Why it matters

State-anchored early-stage funds are how Europe is trying to keep founders and capital at home rather than losing them to US firms. A British Business Bank cornerstone pulling a fund to nearly triple its size, and a GP relocating from San Francisco to London, is a small concrete instance of that push against the transatlantic talent drain.

What to watch

• Whether more European early-stage GPs lean on state anchors to close funds.
• Tapestry's first Fund III deals and its London-versus-US deployment split.
• Whether the repeat-founder thesis outperforms in a tighter market.