The 39-year-old racing legend has leveraged his fame to gain access to top investment firms worldwide. Now, he aims to create lucrative opportunities for affluent Europeans seeking entry into Silicon Valley.

By Justin Birnbaum, Forbes Staff

Nico Rosberg, a name synonymous with speed, once flew through the narrow, winding streets of Monte Carlo at astonishing speeds of 200 miles per hour. However, making a connection with venture capital titan Mike Maples Jr., a cofounder of Floodgate, at a bustling business conference can be daunting. At a recent summit in New York last month, Rosberg witnessed firsthand as hundreds of eager admirers surrounded Maples, turning even a brief conversation into a seemingly impossible feat.

Yet, Rosberg possesses a uniquely effective icebreaker for navigating such elite crowds.

“I’m very humble usually, but I have to use the two-second intro to set myself apart,” Rosberg explained. “So I just went straight [up to him], and I was like, ‘Hey, I’m Formula 1 world champion Nico.’” Rosberg’s bold approach certainly paid off, as he managed to secure a few valuable minutes of Maples’ time that day. This is far from Rosberg’s first foray into utilizing his F1 achievements to charismatically connect with an entirely new demographic of innovative founders and driven investors. Following his dramatic retirement in 2016 after achieving the coveted checkered flag, the German-born Rosberg has ardently redefined his identity as an entrepreneur, investing in over 30 companies while also establishing several of his ventures. His journey now shifts into another gear, as he embarks on an ambitious goal of fund management.

In April, Rosberg Ventures, his Monaco-based firm, declared the establishment of a pioneering “fund of funds.” This innovative financial vehicle aggregates capital to invest primarily via established venture capital firms rather than directly funding nascent startups. In an exclusive statement to Forbes, Rosberg shared that he has successfully gathered $100 million in assets under management, with a personal investment of at least $5 million. His strategy is clear: index the foremost U.S. venture capital firms, asserting, “It makes a lot of sense to give your money to the best in the world.”

This strategy is grounded in sound logic. A notable 2014 study by Wealthfront revealed that an astonishing 95% of realized returns within the American venture capital sector were attributed to just the top 20 firms—a statistic that continues to resonate in today’s investment landscape.

Such overwhelming success has rendered premier firms like Andreessen Horowitz, Kleiner Perkins, and Thrive Capital exceedingly sought-after, leaving them in the unfortunate position of having to turn away eager investors. This fiercely competitive milieu serves as a central component of Rosberg’s proposition: for his clientele, primarily ultra-high-net-worth families from Germany and Italy lacking deep connections to Silicon Valley, he offers a pathway to opportunities they struggle to find back home.

“It very much becomes an access class rather than an asset class because all the returns are captured by these very few top firms,” Rosberg explains. “The winners keep winning.”

Rosberg’s familiarity with such exclusive dominance transcends the world of venture capital and is deeply rooted in his illustrious Formula 1 career. As a vital contributor to the Mercedes-AMG Petronas F1 team, he played an instrumental role in clinching three consecutive constructors’ championships, which marked the inception of an extraordinary eight-title streak under the watchful eye of billionaire team principal Toto Wolff. However, in 2016, after a nail-biting battle with teammate Lewis Hamilton that saw him capture the drivers’ championship, Rosberg stunned the motorsport community by abruptly retiring at the young age of 31.

Pivoting towards angel investing, Rosberg soon began aligning himself with the growing trend of athletes transitioning into genuine entrepreneurial roles rather than mere endorsers. This list includes prominent figures like LeBron James, who co-founded entertainment studio SpringHill and became an influential athlete-entrepreneur. With nearly $80 million in career pretax earnings from Formula 1 salaries and performance bonuses behind him, Rosberg had ample capital to invest.

“As an athlete or a celebrity, generally speaking, you do get access,” noted a partner at a top Silicon Valley venture firm where Rosberg is a valuable investor. “You do get that sort of foot in the door because people want to get to know you; they want to connect with you. … If you’re able to get in front of the best companies and you’re able to deliver value and have an allocation to invest, it’s kind of a no-brainer.”

Rosberg’s established reputation propelled him to his first investment opportunity shortly after retiring. Mercedes-Benz, which owns a significant stake in the racing team, invited him to join in their venture with electric vehicle infrastructure startup ChargePoint. He invested a five-figure sum and subsequently exited after the company’s IPO in 2021, stating that his returns were “many multiples” of his original investment.

From that initial success, Rosberg’s portfolio flourished, diversifying across various sectors such as car-sharing with Vay and cutting-edge artificial intelligence through Codeium, averaging $50,000 per investment. One notable investment stemmed from a series of cold outreach emails to digital payments startup Ivy, where Rosberg resonated with co-founder Ferdinand Dabitz’s drive. “I thought, ‘OK, I respect the hustle; let’s meet,’” Dabitz recounted.

Though Rosberg may not be a finance expert by trade, he offers immense value in various forms, including thoughtfully connecting Dabitz to a European transportation CEO, identifying a prospective Ivy customer.

As he delved deeper into the venture capital sphere through strategic co-investments, proactive outreach, and founder referrals, Rosberg steadily cultivated his reputation. The explosive popularity generated by the reality series Netflix’s Drive To Survive, which broadens Formula 1’s reach in the U.S., surely contributed to his growing clout. Nevertheless, Rosberg faced hurdles along the way, including several rejected attempts to invest in premier funds. Following his fifth unsuccessful pitch, Andreessen Horowitz provided him with constructive feedback: to pursue partnerships with larger checks and unique value propositions.

Rosberg, born in Germany and raised in the glamorous locale of Monaco, decisively pivoted, assembling capital and eyeing investment prospects across the Atlantic. The European venture capital arena lags significantly behind the U.S. market, raising merely a third of the staggering $140 billion amassed by American counterparts thus far in 2024, according to Crunchbase. “You really don’t have the equivalent of Silicon Valley or even New York,” remarked Nigel Morris, managing partner at fintech venture firm QED Investors. Morris elaborated that the region is still maturing, facing obstacles such as regulatory inconsistencies and cultural variations between countries, adversely impacting the vibrancy of the investment landscape.

Boosted by his fame as the son of former F1 champion Keke Rosberg and prominent visibility from his multi-season stint on Germany’s entrepreneurial show Die Höhle der Löwen (The Lion’s Den), Rosberg adeptly navigated these challenges. He cultivated relationships with influential families involved in Germany’s mid and large-cap companies, while establishing connections with investors in Italy, a country where his fan base remains robust. With a compelling offering, his network of investment access proved invaluable.

“If you are not getting into the very best funds in venture, your average portfolio will show unsatisfying returns,” emphasized an investor from a notable German industrial family who engages with Rosberg. “There are a lot of people in the industry who walk around and are giving promises of what they can achieve, but Nico is delivering.”

With a ready pool of untapped capital from European investors, Rosberg successfully raised $22 million towards the end of 2022, promptly committing all of it to a single Tier 1 firm—an unnamed entity. This decisive move laid the foundation for the fund of funds, which he announced in April with a target of raising $75 million. Ultimately, he garnered an impressive $78 million from around 25 investors, surpassing his original goal. This fund is slated to be completely deployed within a two-year period, although Rosberg has opted not to publicly disclose the firms involved.

Determining the fund’s success will take time, as it operates on a 10-year cycle with chances for three-year extensions, paralleling typical fund operations. Historically, elite funds have averaged a 25% annual return, yet Rosberg predicts a slight compression in those projections across the board. Moving forward, Rosberg’s vision includes launching a new fund of funds every two years as the leading firms continually present fresh investment opportunities.

While his capital management advances, Rosberg remains dynamic, regularly hosting events during Formula 1 races to foster new relationships within his expansive network. A testament to his connective prowess occurred when he facilitated a revenue-sharing collaboration between German tech giant SAP and compliance automation startup SecJur.

“We connect,” Rosberg states simply. “This is what we do.”

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What lessons from your racing career⁤ do you apply to your ‌investment strategies in venture capital?

**Interview with Nico Rosberg: From Racing Legend to Venture Capitalist**

**Editor**: Thank ‍you for joining us ⁣today, Nico! Your transition ⁣from Formula 1 champion to venture ‍capitalist is fascinating. Can you tell us how your background in racing has influenced your⁢ new career path?

**Nico Rosberg**: Absolutely! In Formula 1, every ​decision counts and the⁣ stakes are incredibly high. This mindset drives me in investing as well; it’s about making calculated risks and building a winning strategy. Just⁣ like on ⁤the track, I’ve had to learn to navigate⁣ competitive environments and build connections quickly, especially in venture ‌capital.

**Editor**: You’ve successfully launched Rosberg Ventures, ‍focusing on creating access for affluent Europeans to investments in Silicon Valley. What inspired this specific focus?

**Nico Rosberg**: After retiring, ​I realized ‌how limited access ​is for many ultra-high-net-worth families in Europe⁣ to premier U.S. venture funds. My aim is to bridge that gap. There’s a⁢ wealth of untapped capital in Europe, and I want to ‍connect‍ those investors with the top venture capital firms ⁣that drive innovation‌ in Silicon Valley.

**Editor**: Speaking of those top firms, you mentioned a ⁤“fund of​ funds” model. Can you explain how that works and why you chose this approach?

**Nico Rosberg**: Sure! A fund of funds aggregates‍ capital ‍to invest in existing venture capital firms rather than directly in startups. This allows me to leverage the expertise of the best in the industry. Statistics show that a ‌small number of firms are responsible for the majority ‍of returns ⁤in venture capital, so it makes sense to ⁢align with them.

**Editor**: You mentioned raising $100 million in assets, with your personal investment⁣ included. How do you plan to utilize those funds going forward?

**Nico Rosberg**: Our⁣ strategy is focused on indexing top-tier U.S. venture capital firms, enabling our investors to benefit from the exceptional returns that those firms have historically provided. We’re being selective and strategic about where we allocate funds, ensuring we’re backing the right teams.

**Editor**: Raising funds and entering such ⁢a competitive ⁢landscape can be challenging. What‍ have⁤ been some of the obstacles you’ve⁤ faced so far?

**Nico Rosberg**: ​There​ have certainly been hurdles! Initially, I faced several rejections when trying ⁤to pitch to top funds. But I took the ‌feedback received from these experiences and ⁢pivoted my strategy‌ accordingly. I’ve learned the importance of partnership and unique value propositions—which ultimately helps in securing access to these‍ premier funds.

**Editor**: With your unique background and connections, how do you see the future for European investors looking to break ⁤into Silicon Valley?

**Nico Rosberg**: I’m optimistic! There is a growing recognition among European investors of the potential returns ‌available⁢ in the U.S. ⁤market. By offering access ⁢to top-tier funds, my goal is to⁤ empower these investors⁣ and ensure they don’t miss out on the opportunities ​generated by leading innovators.

**Editor**: It sounds ⁤like you’re‌ paving a new road for many investors. Thank you for ⁢sharing‌ your insights, Nico.⁤ We wish you the best of luck with Rosberg Ventures!

**Nico Rosberg**: ​Thank you!​ It’s an‌ exciting journey, and I’m ⁢thrilled to be making a⁤ difference in ‍this space.