What happened
Entourage, a Ghent-based early-stage investor, has closed its second fund at €100 million ($111 million), surpassing its initial €75 million target within two weeks. The fund will invest in approximately 25 pre-seed and seed companies, with initial checks ranging from €1 million to €5 million. Its focus areas include AI, enterprise software, robotics, and deep tech. Backers include entrepreneurs, family offices, and private investors, including founders of Aikido, TechWolf, and Collibra. Founder and general partner Pieterjan Bouten stated the firm is doubling down on its strategy, noting that Entourage typically leads or co-leads rounds but rarely takes board seats, prioritizing trust and timely challenge over close supervision. The fund follows other recent European AI fund raises by Merantix and Headline.
Entourage, an early-stage investor based in Ghent, Belgium, has officially closed its second fund at €100 million, equivalent to $111 million. This amount exceeds the firm’s original target of €75 million, a goal it surpassed within just two weeks of closing. The fund is designed to support approximately 25 pre-seed and seed-stage companies across Europe and other regions. Initial investments will range from €1 million to €5 million, with the capacity for follow-on rounds as companies grow. The fund’s investment thesis centers on four key areas: AI, enterprise software, robotics, and deep tech.
The fund’s backers include a mix of entrepreneurs, family offices, and private investors. Notable participants include the founders of Aikido, TechWolf, and Collibra. Aikido, a portfolio company of Entourage’s first fund, recently reached a $1 billion valuation in January 2026 following a $60 million Series B round. Other portfolio companies, Conveo and Lexroom, each secured $50 million rounds this year, demonstrating the fund’s ability to support companies through significant growth milestones.
Pieterjan Bouten, founder and general partner of Entourage, emphasized that the firm is doubling down on its strategy with this new fund. Bouten, who previously co-founded Showpad and grew it to over $100 million in annual recurring revenue before its sale to Vector Capital, outlined the firm’s operational approach. Entourage typically leads or co-leads funding rounds but rarely takes board seats. Bouten stated that strong founders require trust and timely challenge rather than close supervision, suggesting a hands-off but engaged investment style.
A notable shift in the fund’s strategy is its explicit focus on robotics and physical AI. These sectors typically require more capital and longer development timelines compared to traditional software investments. Bouten acknowledged that this move will be a key test for the fund. The raise follows similar moves by other European AI-focused funds, including those from Merantix and Headline, indicating a broader trend of increased capital allocation to AI and deep tech in Europe.
Source details: theaiinsider.tech
Why it matters
This fund closure signals sustained investor confidence in the European early-stage AI and deep tech ecosystem, particularly in sectors requiring longer timelines and higher capital intensity like robotics. By targeting pre-seed and seed stages with checks up to €5 million, Entourage addresses a critical gap in funding for companies that have validated their technology but lack the resources to scale. The inclusion of robotics and physical AI as key focus areas reflects a broader industry shift toward deploying AI in the physical world, moving beyond purely digital applications. For founders, this provides a viable path for early-stage funding from an investor with a track record of successful exits, such as Aikido’s recent $1 billion valuation. The oversubscribed nature of the fund suggests strong demand from limited partners for exposure to high-growth European tech assets, potentially increasing competition for top-tier early-stage deals in the region.
The closure of Entourage’s €100 million Fund II is significant because it demonstrates robust investor appetite for early-stage AI and deep tech companies in Europe. The fact that the fund was oversubscribed, exceeding its target within two weeks, suggests that limited partners are actively seeking exposure to high-growth technology assets in the region. This capital influx can help bridge the funding gap for pre-seed and seed companies, which often struggle to secure large initial checks from traditional venture capital firms.
The fund’s focus on robotics and physical AI is particularly noteworthy. As AI technology moves beyond digital applications into the physical world, the need for specialized capital and expertise grows. By targeting these sectors, Entourage positions itself to support companies that are developing hardware and software solutions for real-world deployment. This focus aligns with broader industry trends toward embodied AI and automation, which are expected to drive significant economic growth in the coming years.
For founders, the availability of a dedicated €100 million fund for early-stage AI and deep tech companies provides a valuable resource. Entourage’s track record, including the successful exit of Showpad and the recent valuations of Aikido, Conveo, and Lexroom, lends credibility to the firm’s investment approach. Founders can benefit from Entourage’s network of experienced entrepreneurs and investors, as well as its hands-off but engaged management style, which allows founders to maintain control while receiving strategic guidance.
The fund’s closure also has implications for the broader European tech ecosystem. By increasing the amount of capital available for early-stage AI and deep tech companies, Entourage can help drive innovation and job creation in the region. The fund’s focus on Europe and beyond suggests that it will play a role in shaping the global AI landscape, particularly in areas where European companies have a competitive advantage, such as enterprise software and deep tech.
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What to watch next
Monitor which specific companies Entourage invests in next, particularly in the robotics and physical AI sectors, to identify emerging trends in European deep tech. Watch for follow-on rounds from Entourage in its existing portfolio, such as Conveo and Lexroom, to gauge the fund’s impact on company growth. Observe how the increased capital availability affects valuation dynamics for pre-seed and seed AI startups in Europe. Track whether other European VCs follow suit with similar fund sizes and focus areas, potentially leading to a broader capital influx into the region’s AI ecosystem.
Investors and analysts should monitor Entourage’s upcoming investments to identify which companies are gaining traction in the AI and robotics sectors. The specific companies chosen for initial checks will provide insights into the fund’s strategic priorities and the areas of the market it considers most promising. Paying attention to the geographic distribution of these investments will also reveal whether Entourage is focusing primarily on Europe or expanding its reach to other regions.
Follow-on rounds from Entourage in its existing portfolio companies will be a key indicator of the fund’s impact. If companies like Conveo and Lexroom continue to secure significant funding rounds with Entourage’s participation, it will demonstrate the fund’s ability to support companies through multiple stages of growth. This will also provide a for the performance of Entourage’s new fund, as it seeks to replicate the success of its first fund.
The competitive landscape for early-stage AI and deep tech funding in Europe is likely to intensify as more funds close with similar mandates. Watch for announcements from other European VCs, such as Merantix and Headline, to see if they are also increasing their capital allocation to these sectors. This competition could lead to higher valuations for early-stage companies, making it more challenging for founders to secure favorable terms.
The long-term success of Entourage’s focus on robotics and physical AI will depend on the ability of portfolio companies to navigate the challenges of hardware development and deployment. Watch for milestones in product development, commercialization, and scaling for these companies. Any setbacks or delays could impact the fund’s overall performance and the perception of the sector among investors.