berlinBerlin is bursting with startup activity.

Today, Point Nine Capital announced its new $53.8M fund (€40M) to support early-stage European companies. The firm’s approach is to be “the angel VC.” The partners are focusing on mentoring entrepreneurs in areas such as Software-as-a-Service, eCommerce, marketplaces, and mobile.

Most of the investments are in consumer Internet technology, although it’s also done a slew of business-to-business product and enterprise management platform deals. Portfolio companies include Delivery Hero, Couchsurfing, Shiftplanning, Vend, Westwing, and Zendesk.

Berlin is setting itself up as a European hub for startups. Along with Point Nine, Rocket Internet is a well-known startup incubator and seed fund based in the German capital that makes investments around the world. Global venture capital fund has offices in Berlin, and last year, Index Ventures made the city a priority as a startup hub.

The thriving art scene in Berlin means that large pool of creative talent and success stories have generated excitement about the possibilities for local startups. Well-known companies like SoundCloud and Etsy are either headquartered or have offices there, and recently launched its European platform and incubator out of Berlin.

Mayor Klaus Wowereit said, “Berlin is poor, but sexy” back in 2004. Now, it is poor, sexy, and filled with entrepreneurs.