What Karma Ventures does

Karma Ventures is a European venture capital firm headquartered in Tallinn, Estonia, and incorporated in Luxembourg as Karma Ventures S.à r.l. The firm invests in deep-tech software startups at late seed and Series A stages, deploying up to €5 million per opportunity and participating in later follow-on rounds. Its €170 million in assets under management is spread across 26 portfolio companies that collectively employ approximately 1,500 people, with 88% of those companies having gone on to raise subsequent funding rounds.

The firm's portfolio spans AI infrastructure (Druid AI, Realeyes, Infermedica, Bfore.ai, Pactum, Swarmia), autonomous systems (Starship Technologies), developer and data platforms (WunderGraph, CGTrader, Leil, Sonarworks), IoT and connectivity (Wirepas, Commsignia, Hydrogrid), fintech (Tuum, Lucinity, Xolo), HRtech (MeetFrank, Jobbatical), proptech (Minut), and security and defence (Patchstack, Cybexer). Karma Ventures differentiates on operational experience from founders and executives who have built and exited companies, board-level engagement, and an advisory network that includes Skype co-founders Ahti Heinla and Jaan Tallinn alongside senior alumni of Nokia, STMicroelectronics, Google, Apple, Microsoft, and Pipedrive.

Revenue is generated through standard VC mechanics: annual management fees on assets under management, plus carried interest from successful exits. The firm has recorded multiple strategic-acquirer exits (SAP, Splunk, Dynatrace, Corsearch, Recruit, Fleet Complete, Proofpoint), and its investment managers' compensation is structured to align with long-term, sustainable value creation via carry participation, as disclosed in its Luxembourg-registered ESG and remuneration policy. The firm has expanded its geographic footprint with its first international team member based in Germany and is operating a successor fund vehicle (Karma Ventures II GP S.à r.l.).

Name

Karma Ventures

Legal name

Karma Ventures S.à r.l.

Website

https://karma.vc

Company type

Private

Founded year

2014

Operating status

Operating

Headcount range

1–10 employees

Short description

Karma Ventures is a Tallinn-based European venture capital firm backing deep-tech software startups at late seed and Series A stages, typically investing up to €5M per opportunity, with €170M in assets under management across 26 portfolio companies.

Ownership category

akta.pro rank

Product category

Venture Capital

NAICS

Portfolio Management and Investment Advice (523940), Other Investment Pools and Funds (5259)

SIC

Finance Services (6199)

akta.pro primary industry

Venture Capital Fund-of-Funds / Multi-Manager Platforms (FSANAAAJ)

Keywords

• Venture capital investing
• Deep-tech software
• Seed and Series A
• Startup financing
• European technology

Headquarters

HQ city

Tallinn

HQ country

Estonia

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Others, Marketing or Sales, Technology or R&D

Revenue model

1. Management fees: VC firms typically charge annual management fees as a percentage of assets under management to cover operational expenses. Karma Ventures manages €170M in assets under management.
2. Carried interest (carry): VC firms generate returns through carried interest — a share of profits from successful portfolio company exits. Karma Ventures' investment managers' interests are aligned with the goal of long-term, sustainable value creation through their share in carried interest, as stated in their ESG and remuneration policy.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

Karma Ventures is a venture capital firm that invests up to €5M per opportunity into European deep-tech software startups at the late seed and Series A stages, with follow-on participation in later rounds. The firm manages approximately €170M in assets under management across a portfolio of 26 companies and supplements capital with operational experience, board participation, ESG guidance, and access to a network of co-investors and advisors including Skype co-founders.

Product overview

Karma Ventures is a European venture capital firm that operates as an investor and accelerator for deep-tech software startups rather than as a product company itself. The firm manages a portfolio of 26 portfolio companies and typically invests €1-5M per opportunity at late seed and Series A stages. The portfolio includes diverse AI and deep-tech platforms including: Swarmia (engineering intelligence with DORA metrics and AI impact tracking), Leil (HDD-native distributed file system for hyperscale storage), WunderGraph (open-source GraphQL Federation platform), Starship Technologies (autonomous delivery robots), Druid AI (conversational AI infrastructure for enterprise virtual assistants), Realeyes (Vision AI for human verification), CGTrader (3D model marketplace with AI-powered asset creation), Sonarworks (audio calibration with AI voice processing), Pactum (agentic AI procurement platform), Infermedica (clinical AI triage), Bfore.ai (behavioral AI for cyber defense), Patchstack (vulnerability intelligence), and others spanning fintech (Tuum, Lucinity), IoT (Wirepas, Commsignia), HRtech (Meetfrank, Jobbatical), proptech (Minut), and industrial tech (Hydrogrid, Cybexer). The portfolio companies have collectively raised follow-on funding, with 88% having successfully raised subsequent rounds.

Differentiator

Problem solved

Functional benefit

Products and services

• Karma Ventures Fund I (Karma Ventures S.à r.l.) Primary venture capital fund vehicle through which Karma Ventures deploys €1–5M cheques into European deep-tech software startups at late seed and Series A, with follow-on participation in later rounds. Available to limited partners as a pooled investment vehicle.
• Karma Ventures Fund II (Karma Ventures II GP S.à r.l.) Successor Luxembourg-registered Alternative Investment Fund Manager for Karma Ventures, supporting continued investment into European deep-tech software at late seed and Series A as part of the firm's expanded capital base. Governed by the same ESG and remuneration policy as Fund I. Specific launch date and fund size not disclosed in source material.
• Portfolio Operational Support and Board Participation Ongoing service offering to portfolio companies including board-level engagement, ESG guidance, follow-on capital coordination, and operational mentorship from Karma Ventures' Founding Partners and advisor network (Skype co-founders Ahti Heinla and Jaan Tallinn). Delivered alongside the firm's equity investments to its 26 portfolio companies.

Quantifiable outcome

• 88% of portfolio companies have raised follow-on funding rounds
• +3 more outcomes

Named customers22 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration6 records

AI capability12 records

Partnerships

Two partnerships are on record, tiered minor.

• Invest EuropeminorOthersKarma Ventures is a member of Invest Europe and closely follows ESG-related developments in the broader ecosystem. The firm participates in pan-Baltic and Estonian VCA activities.
• Estonian VC Association (VCA)minorOthersKarma Ventures actively participates in pan-Baltic and Estonian VCA activities, contributing to the development of the venture capital industry in the region.

Scale indicators7 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Atomico: London-headquartered European venture firm founded by Skype co-founder Niklas Zennström, investing across European tech stages. Highly comparable to Karma given the shared Skype-founder DNA, European focus, and stage range.
• Plural: European early-stage VC investing in deep tech, fintech, and enterprise software. Directly comparable as Karma co-invested with Plural in Starship Technologies' $50M Series C, and Plural occupies the same European deep-tech niche.
• Speedinvest: Vienna-based European early-stage VC with sector-focused funds including deep tech. Overlaps with Karma on European deep-tech software investments at seed and Series A.
• Earlybird: Berlin-based European early-stage VC with a deep tech / technology focus, comparable in stage range (seed, Series A) and sector concentration to Karma.
• Notion Capital: London-based VC focused on European enterprise and deep tech software at Series A and beyond. Direct comparable on deep-tech software targeting European founders.
• Dawn Capital: London-based European B2B software-focused VC investing at Series A and later. Overlaps with Karma on European deep-tech software targeting enterprise customers.
• Creandum: Nordic-European early-stage VC backing tech startups from seed to Series B. Comparable European early-stage focus and stage range to Karma.
• Lightrock: European impact-focused growth and venture investor with deep-tech and tech-for-good exposure. Comparable on European deep-tech software thesis combined with strong ESG framing, mirroring Karma's ESG positioning.

Broad incumbents

• Index Ventures: Large European-headquartered VC investing across stages and sectors. Comparable to Karma on European tech investing, though materially larger and broader in mandate.
• Balderton Capital: London-based European early-stage VC backing technology startups. Comparable European early-stage orientation though with a less narrowly deep-tech-specialized thesis.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/karma-ventures

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments47 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Karma Ventures