Balderton Capital set to continue funding European startups after $375M fund closes.
Balderton Capital, based in London, is announcing a new fund to the tune of $375 million. This announcement has not particularly been a big secret in European VC. The fund has apparently already closed earlier on in the year and ten investments have been made.
While Balderton now possesses a good amount of new capital for use, there is nothing particularly unusual about the happenings from this firm. The announced fund will be used to support Series A stage startups across Europe. Those in Series B stage will also get occasional support and follow-ons will also be facilitated.
There is no specific information given concerning LPs from the VC. It is not known whether there was any funding from the British Business Bank but recent news indicate the European Investment Fund (EIF) is involved. Various funders from Europe, Asia, and the U.S. have also been involved. Contrary to the previous fund, only a few Asian LPs were involved this time. Funding from Europe and the U.S is distributed at 60/40.
In what seems like Balderton’s main persuasion tactic to LPs, the firm says that there are admirable developments in Europe. These developments include the many growing companies, excellent technical base, vibrant entrepreneurs and diverse investment opportunities – key factors that indicate a big technology corporation that can rival Silicon Valley.
Balderton believes that even though there are many worthy tech companies in Europe, there is still room to create corporations that can rival the likes of Google, Facebook, and Amazon. The firm cites the fast growth being experienced in Europe and the huge venture investments that have been attracted in recent years as the key anchors to produce a large scale tech corporation.
The previous fund by Balderton was used to fund fintech companies like Revolut, Nutmeg and Prodigy Finance. Other beneficiaries were Frontier Car Group, Carwow, and Aircall. The firm has indicated that it will continue to support fintech startups as well as AI companies. The firm will put emphasis on developing the AI sector since the U.K and Europe already have some admirable success in the area. An example that Balderton cites is the Comply Advantage AI company that automates compliance requirements for financial services firms.
In addition to these, Balderton is keen on the games sector as it also presents a key area of strength for Europe. Europe has historically produced the bigger proportion of products in this area compared to other regions of the world.