According to EU-Startups, Dutch venture capital firm henQ has launched its fifth fund, henQ 5, with €67.6 million to back early-stage B2B software startups across Europe. The fund will focus exclusively on founder execution capability and targets “boring” or “too small” markets that other investors overlook. Led by partners Mick Mackaay, Coen van Duiven, Rob Rousseau, and Jan Andriessen, the firm plans to make only 8-12 investments over five years with initial checks ranging from €1 to €10 million. Notably, henQ raised this fund without institutional or government money despite such sources comprising nearly half of their previous fund, reflecting their commitment to independent decision-making focused solely on long-term returns. This concentrated approach stands in contrast to broader European VC trends, as the firm aims for every deal to deliver meaningful returns rather than relying on a few portfolio outliers.
Sponsored content — provided for informational and promotional purposes.
The European Scaling Paradox
Jan Andriessen’s insight about European companies not being American clones reveals a fundamental truth about the continent’s startup ecosystem. Unlike the relatively homogeneous US market, Europe presents a mosaic of languages, regulations, and business cultures that make scaling exponentially more complex. This fragmentation means that simply throwing capital at European expansion often backfires—more money can actually hurt by forcing premature internationalization before product-market fit is solidified. The most successful European B2B companies master this complexity through focused execution rather than brute-force funding, which explains why henQ’s portfolio includes companies like Mendix and Mews that achieved global dominance from European bases.
The Contrarian Advantage in “Boring” Markets
henQ’s deliberate pursuit of markets others consider “boring” or “irrelevant” represents a sophisticated understanding of venture economics that most funds overlook. While competitors chase hyped sectors like AI, they’re often paying premium prices for crowded deals with inflated valuations. By contrast, henQ’s strategy of identifying temporarily undervalued or overlooked markets creates structural advantages: lower entry valuations, less competitive deal flow, and founders who are genuinely passionate about solving real problems rather than chasing trends. This approach requires deep sector expertise and patience, but it systematically avoids the valuation bubbles that plague trendier investment categories.
Why the Lean VC Model Creates Outsize Returns
Rob Rousseau’s comment about staying “lean and small” while improving every year points to a venture model that prioritizes quality over quantity. With only 2-3 investments annually, henQ’s partners can provide the intensive, hands-on support that early-stage B2B startups genuinely need—something impossible for mega-funds managing hundreds of portfolio companies. This concentrated approach also creates natural discipline in deal selection, forcing the team to be exceptionally rigorous about which founders they back. The result is a portfolio where every company receives meaningful attention and resources, dramatically increasing the probability that each can reach its full potential rather than becoming neglected assets in an oversized fund.
The Future of European Venture Capital
henQ’s success with an entrepreneur-driven LP base and independent funding structure signals a broader shift in European venture capital toward specialization and focus. As the market matures, we’re likely to see more funds carving out specific niches based on deep expertise rather than trying to be all things to all startups. This specialization trend will particularly benefit B2B software companies that require nuanced understanding of specific industries and scaling challenges. The fact that henQ achieved nearly the same fund size as its predecessor without institutional money suggests that sophisticated investors are increasingly recognizing the value of focused, independent funds over bloated, generalist vehicles.
Long-Term Implications for European Tech
If henQ’s model proves successful—and their track record with companies like Sendcloud suggests it will—we may see a fundamental rethinking of how venture capital supports European innovation. The traditional Silicon Valley model of rapid scaling through massive funding rounds may be less effective in Europe’s fragmented markets. Instead, the future could belong to funds that combine patient capital with deep operational expertise in specific domains, helping founders navigate Europe’s complexity rather than simply writing larger checks. This approach could ultimately produce more sustainable, capital-efficient companies built for long-term success rather than quick exits.
