We're Open-Sourcing Our Investor Updates
Most venture capital funds operate behind closed doors, sharing performance data and portfolio updates only with their limited partners. Prototype Fund is doing the opposite: publishing quarterly investor letters on Substack for anyone to read. The move raises questions about competitive advantage, founder confidentiality, and whether transparency can actually become a moat in an industry built on information asymmetry. Beyond the public reporting, the fund is pursuing an ambitious agenda—standardizing early-stage legal frameworks across Europe, launching a robotics club network, and backing companies working on wireless charging, gravity manipulation, and braided humanoid robots.
Key Takeaways
Prototype Fund publishes full quarterly investor updates on Substack, sharing only publicly available information to maintain portfolio company confidentiality while building trust with the founder community.
The fund launched EO Inc., a policy project to standardize early-stage startup legal entities across Europe, addressing the fact that less than 18% of European early-stage capital flows pan-European due to legal fragmentation.
Portfolio highlights include Willow (wireless energy), Belfort (encrypted-data computation hardware with Google as a customer), and Leona (sodium-ion batteries for Europe), signaling a focus on deep tech and manufacturing sovereignty.
The fund was ranked second-best early-stage fund in Europe (sub-€20M category) based on performance metrics, not brand or vibes, validating the thesis that technical competence and sector focus create edge.
Undisclosed investments include a space company offering «gravity as a service» and a construction robotics firm building micro-factories for housing—both reflecting the fund's conviction in re-industrializing the West through automation and advanced manufacturing.
In a Nutshell
Prototype Fund is betting that radical transparency in venture capital—combined with systemic projects like legal standardization and community building—can attract mission-aligned founders and create a defensible brand in Europe's fragmented early-stage market.
Why Publish Investor Updates Publicly?
Transparency builds trust with mission-aligned founders in a landscape of ambiguous VC brands.
Prototype Fund made its first quarterly investor update completely public on Substack, a rare move in venture capital. The rationale is strategic: the firm believes founders struggle to identify mission-aligned investors because most funds use identical marketing language and opaque positioning. By sharing performance data, portfolio developments, and strategic priorities openly, the fund aims to differentiate itself and attract founders who value alignment over brand name.
The updates share only publicly available information to protect portfolio companies operating in highly competitive sectors like robotics and manufacturing, where the US and China deploy billions in capital. Confidential milestones, product roadmaps, and competitive moats remain private. The goal is not full disclosure but calibrated transparency that builds credibility without leaking strategic intelligence to competitors or other investors.
EO Inc.: Standardizing Startup Entities Across Europe
Portfolio Spotlight: Deep Tech and Re-Industrialization
Investments span wireless energy, encrypted computation hardware, sodium batteries, and farming automation.
Willow – Wireless Energy Building room-scale wireless charging technology that powers devices without physical contact. The team claims radiation levels are lower than smartphones. If commercialized, this could eliminate cables and charging infrastructure for consumer electronics.
Belfort – Encrypted Computation Hardware Enables algorithms to process fully encrypted data without decryption, using zero-knowledge cryptography. Google is now a customer. The hardware accelerates operations that would otherwise be prohibitively slow, unlocking use cases in healthcare, search, and AI training.
Leona – Sodium-Ion Batteries Developing batteries using salt instead of lithium, targeting grid storage and cold-climate applications. Sodium-ion cells tolerate deep discharge and freezing temperatures better than lithium-ion. The company is working to match energy density, which would enable car production independence from Chinese supply chains.
Voltrak – Autonomous Farm Tractor Four-ton lift capacity, eight-ton pull capacity. The tractor automates field operations 24/7, increasing yield and enabling one farmer to manage multiple properties. First investment in the new fund, based in Spain.
Alonic – Braided Humanoid Robots Uses polymer braiding instead of traditional actuators to constrain robotic joint movement, mimicking human tissue and bone. 3D-printed skeletons are wrapped in precisely woven plastic fibers that define range of motion, reducing cost and mechanical complexity.
«We need to build our own tech. We need to become fully sovereign.»
The fund's thesis centers on European manufacturing independence and GDP-driving innovation.
“We need to build our own tech. We need to build become fully sovereign. We need to build get back into building manufacturing all this kind of stuff. We need to be the best in our research and build the best in innovation. We need to build an ecosystem that's actually makes it possible for young people to build GDP driving companies here.”
Key Metrics and Recognition
Performance-based ranking and subscriber growth signal traction beyond brand positioning.
Community and Ecosystem Projects
Beyond capital, the fund sponsors robotics clubs and media to shift European tech culture.
Undisclosed Bets: Gravity and Micro-Factories
Two stealth investments target space infrastructure and automated housing construction.
Undisclosed Bets: Gravity and Micro-Factories
One portfolio company pitches «turning off gravity as a service»—a space technology the speaker describes as functioning despite sounding absurd. Another builds micro-factories with robots inside to manufacture houses, addressing housing affordability through automation. Both investments reflect the fund's willingness to back unconventional approaches to large-scale infrastructure problems, even when pitches sound like science fiction.
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