On April 1st this year, Fil Rouge Capital announced the first closing of their third fund — FRC3 — at their home base in Zagreb. At the same time, they’re also marking something just as significant to us: more than 10 years of continuous collaboration with Podim.
In those 10+ years, Fil Rouge Capital has become more than just a regular presence at the conference. They’ve been active contributors to the regional startup ecosystem, supporters of bold founders, and constant advocates for the potential of this part of Europe. What’s more, they’ve actively collaborated with other European investors, helping to create stronger connections across the continent. Whether on stage, in the jury seat, or in the Deal Room, their involvement has left a strong impression.
So, what’s next for one of the most active VCs in the region? We sat down with Julien Coustaury, co-founder and managing partner of Fil Rouge Capital, for a candid, witty, and inspiring look into the mindset behind the fund, its next steps, and why čevapi deserve a special mention.
1. FRC3 marks your third fund. They say the third one is the hardest to close — do you agree?
At the risk of sounding pretentious, and I am not famous for being humble, it was not so hard to raise. We probably did a couple of things right in our first funds and we are lucky to have an exceptional base of LPs with a 90% re-up rate! Additionally, we managed to grow our LP base 2X, which meant that we had our first close at the size of our last fund. Really, we can’t agree with your statement.
2. You’ve recently opened an office in Bucharest, with Tirana and Belgrade on the horizon. Is the East becoming the new frontier for FRC’s expansion and footprint?
In the last couple of years we saw a huge diversification in our deal flow. Coupled with an increase in our fund size, we thought it was a good idea to go where we feel the market pull. Clearly, those three ecosystems drove this decision to expand by either their natural dealflow or some LPs bringing local support. All came very naturally — as it should in life.
3. When you look at our broader region — Alps-Adriatic & Western Balkans — where do you see the epicenter of untapped potential?
I’d like to believe FRC operates in the epicenter of the untapped potential. The whole region is extremely dynamic when it comes to talent and is now also becoming a good place to raise for founders. The only thing we still lack is a vivid M&A scene — but that too will come, and there are ways to overcome this.
4. When speaking to total outsiders who know little about this region, how do you present its potential? What’s the first thing you highlight (besides Podim, of course)?
Podim, čevapi, kajmak and me, the rest is not worth mentioning.
5. Where do you see FRC 10 years from now? FRC6? €1B+ in AUM? A portfolio of unicorns? What KPIs are you chasing — and which ones really matter to you?
The only KPI I am chasing is to wake up ahead of my alarm clock every morning because I am so excited about the day ahead. I sleep, I dream, I eat, I drink Fil Rouge Capital every second that goes by. I am enjoying every minute of my “job”, mostly because of the human side of the relationship I develop with founders. When this sparkle is gone, FRC may continue, but without me.
Opportunities are moving east, and the future is bright
With the new FRC3 fund, Fil Rouge Capital confirms that the broader region still holds a great deal of untapped potential. Whether you're just starting out or preparing for your next investment round – this is your opportunity to connect with one of the most experienced VC teams in the region.
