Tapestry VC closed $80 million for its third fund, betting that Europe's repeat founders represent one of the continent's strongest competitive advantages.

The London-based firm targets entrepreneurs on their second or third ventures, citing more than $2 trillion in enterprise value created by repeat founders across Europe. Managing partner Patrick Murphy expects the coming wave of AI exits to produce another generation of experienced entrepreneurs.

"There's beginning to be this super cycle of repeat founders in Europe," Murphy said. He recently relocated from San Francisco back to London, where Tapestry opened a new flagship office.

The fund will back around 30 companies at pre-seed or seed stage. Check sizes will range from $1 million to $3 million, up from the previous fund's typical $1 million investments.

Tapestry's strategy involves engaging founders before they decide on their next venture. "Let's spend time together before you start your new company. Let's ideate, let's brainstorm," Murphy explained, emphasizing the firm doesn't operate as an incubator or accelerator.

Portfolio includes AI and robotics bets

The firm's earlier investments include smartphone maker Nothing and AI customer service startup Fin AI, which Salesforce acquired for $3.6 billion. Other portfolio companies span drone delivery startup Manna Air Delivery and manufacturing automation firm Sunrise Robotics.

Tapestry has increased its focus on AI security through investments in Tracebit, Maze, and Keycard.

New investors in the fund include sovereign investor British Business Bank, pension fund Railpen, and fund of funds Molten Ventures. Notably, OpenAI CFO Sarah Friar also backed the fund.

Murphy emphasized the importance of boutique seed funding for encouraging "creative new people to start interesting, different and weird businesses."

The firm expects repeat founders' experience, connections, and ability to hire quickly will drive outsized returns as Europe's startup ecosystem matures.