Backtrace Capital Closes First €30M Fund Using Papermark

Backtrace Capital is a thesis-driven venture capital firm founded by Dominik Tobschall and Michael Münnix, focusing on the building blocks of tech infrastructure. With their first fund of €30M, they're addressing the misconception of sovereign digital tech infrastructure in Europe.

Key Focus Areas

• Focus on innovative infrastructure, not European copycats
• Pre-seed & seed investments in tech infrastructure
• Supporting founders who leverage Europe's potential to build global companies
• Specialization in below-Application Layer technologies

Their investment thesis centers on the picks and shovels required to build, run, deploy, observe, maintain, and secure modern products. While these infrastructure companies might not have the same halo effect as B2B SaaS or Deep Tech superstars, they become increasingly valuable and sticky once integrated into tech stacks.

The Fundraising Challenge

When Backtrace Capital began raising their first fund, they faced several challenges common to emerging managers:

1. Investor Communication: Needed a professional way to share pitch materials with potential LPs
2. Document Security: Required granular control over who could access sensitive fund information
3. Engagement Tracking: Wanted to understand which parts of their pitch resonated most with investors
4. Version Control: Needed to update their deck as the fundraise progressed while maintaining a single link

The Papermark Solution

Backtrace Capital chose Papermark to manage their fundraising process, leveraging several key features:

• Document Versions: The team maintained a single link for their pitch deck, updating it as their fundraise progressed without having to send new links to investors. This ensured everyone always had access to the most current information.

• Custom Domains: Backtrace used their own branded domain for sharing documents, creating a professional and cohesive experience for potential LPs reviewing their materials.

• Smart Links: By creating individual trackable links for each LP, the team could monitor engagement on a per-investor basis, helping them prioritize follow-ups and tailor their approach.

• Real-time Notifications: Webhooks integration allowed the team to receive instant notifications when investors viewed their documents, enabling timely follow-up conversations.

• Security Controls: With granular access permissions, Backtrace could control exactly who had access to their confidential fund information, setting expiration dates and password protection as needed.

Results

Using Papermark's document sharing and analytics platform, Backtrace Capital successfully closed their €30M fund, gaining valuable insights throughout the fundraising process:

• Identified key sections that resonated most with investors
• Optimized their pitch based on engagement analytics
• Streamlined investor communication with a single source of truth
• Enhanced security for sensitive fund information
• Saved time by eliminating manual tracking and follow-up guesswork

The Backtrace team continues to use Papermark for LP communications and portfolio updates, maintaining the same level of professionalism and insight that helped them successfully close their first fund.