Lucid Capital Research
Investment Thesis
Lucid Capital is a Berlin-based investment firm backing AI-first technology companies in Europe from inception, often before a company formally exists. Founded in 2023 by Srećko Džeko and Johann Nordhus Westarp, who previously worked together at Flash Ventures (which Johann founded in 2019 and grew to more than 40 inception-stage investments), Lucid was built around a single observation: Europe has the engineers, researchers, capital, and operators to build global technology leaders, but has historically lacked the first institutional believer willing to say yes before there is anything to validate. Lucid calls this "inception investing" - conviction before incorporation, and positions itself as a real partner rather than a spectator, matching founders' intensity and speed from day zero.
Sector Focus
Lucid backs AI-native application and infrastructure companies across Europe, with a concentration in technically demanding B2B categories: enterprise software and workflow automation for legacy systems (its portfolio company Conduct rewires SAP and other core enterprise systems with AI), AI agents for legal, compliance, and regulatory automation (Bayshore), AI-driven supply chain and ERP automation (GeneralMind), AI-native robotics for industrial manufacturing (mkind builds AI-native robotic work cells for surface finishing, welding, and coating), AI-powered environmental and carbon management software (forward earth), and vertical AI tools for distribution and financial services (Plato, TODAY). The through-line across the portfolio is a strong technical edge and a credible path to category leadership rather than a single vertical focus.
Stage Focus
Lucid is explicitly an inception and pre-seed investor, frequently writing the first institutional cheque pre-incorporation. It occasionally follows on into seed rounds for existing portfolio companies but does not invest at Series A or later as a new entrant. Public reporting describes roughly three new investments per GP per year, reflecting a deliberately low-volume, high-conviction model for a GP-only team.
Check Size
Initial cheques run €500K to €1.5M, sized to be a founder's first institutional capital rather than a large round anchor. Lucid participates in some larger follow-on rounds for existing portfolio companies (for example Conduct's $60M Series A) but these follow-ons come from existing ownership rather than new first cheques.
Lead Tendency
Lucid both leads and participates depending on the round. It led GeneralMind's and mkind's early rounds and TODAY's pre-seed, and participated alongside other lead investors (Atomico in Plato, Earlybird in Bayshore, Index Ventures/ICONIQ in Conduct's Series A, Speedinvest in forward earth's pre-seed). Because Lucid frequently invests pre-incorporation, it is often functionally the first check regardless of formal lead status in the round that eventually gets announced.
Recent Activity
Lucid closed its debut fund, a €36M Fund I, oversubscribed, in March 2025 and announced it publicly in February 2026 as Europe's largest dedicated AI inception fund. The fund is actively deploying: 2026 alone has included GeneralMind's $12M seed (co-led), Plato's $14.5M seed (participated), Bayshore's $8M seed (participated), mkind's €3M pre-seed (led), and Conduct's $60M Series A (participated as an existing investor). TODAY's €1M pre-seed (led) closed in mid-2025.
Portfolio Highlights
Notable portfolio companies include Conduct (London-based enterprise AI platform that recently raised a $60M Series A co-led by Index Ventures and ICONIQ, with strategic investment from SAP), GeneralMind (Berlin-based AI "System of Action" for ERP and supply chain automation, founded by veterans of German unicorn Razor Group), Bayshore (Munich-based agentic AI platform for legal and compliance), mkind (Munich-based AI-native robotics for manufacturing), forward earth (Berlin-based AI carbon management software), Plato (Berlin-based AI operating system for wholesale distributors), and TODAY (Copenhagen-based vertical AI tool for financial advisors).
Team
- Srećko Džeko, Founding Partner: Previously General Partner at Flash Ventures, Chief Strategy Officer at Rocket Internet, and co-founder of Simplo; brings a product and systems orientation and a background in AI infrastructure and long-term company building.
- Johann Nordhus Westarp, Founding Partner: Founded Flash Ventures in 2019 and backed more than 40 companies at inception before partnering with Srećko to build Lucid; focuses on sourcing and backing founders before most investors would consider the company real.
- Yash Zaveri, Founding Partner & Venture Partner: Previously Partner and Managing Director at Flash Ventures, with earlier experience at Cinven and JPMorgan; splits time between London and Berlin.
Decision Process
Lucid operates as a small, GP-only partnership (three founding partners) without a formal investment committee, enabling fast, high-conviction decisions consistent with pre-incorporation investing.
Founder Preferences
Lucid looks for obsessive, high-velocity technical founders who do not wait for permission or external validation - often founders the partners already know or have tracked closely before a company exists. The firm has stated it knew more than 80% of its portfolio founders before they had a formalized idea.
Geographic Focus
Lucid invests across Europe, with a Berlin home base and a portfolio spanning Germany (Berlin, Munich), the UK (London), and Denmark (Copenhagen). The firm is legally structured as a BaFin-registered German fund with LPs across the US and Europe.