Investors placing capital in older and older technology deals have been a historic trend in recent years, but this strategy was generally reserved for the traditional realm of “high growth” venture capital. VCs had to land deals earlier and earlier, otherwise they would be watered down at a later stage. But with startups coming up with models that can generate income faster, they need the venture capital deal less and less, which typically leaves founders with less control and less equity than capital. newly installed risk on their board of directors. That said, early-stage capital for “growth-based” startups was often hard to come by. So, the “early growth fund” was invented to solve this problem.
Now the latest to arrive in this arena is Balderton, one of Europe’s top venture capital funds, with many uicorns on his belt.
Balderton has now launched a $ 680 million “early growth” fund to invest in high potential technology companies, targeting around 15 early stage companies in the agostic sector.
It plans to invest between $ 25 million and $ 50 million per business through primary and secondary investments. The fund will be managed by Bernard Liautaud, David Thévenon and Rana Yared.
Since its founding in 2000, Balderton has raised $ 4 billion to invest in European startups and has supported over 230 companies, mostly at the Series A stage. Its investments include Depop, GoCardless, Infarm, Revolut, THG, Vestiaire Collective and Zego. The company’s “Liquidity I” portfolio also includes Darktrace, Flywire, Graphcore and Truecaller.
Bernard Liautaud, Managing Partner said: “I have been an investor at Balderton since 2008, and it has been amazing to see the growing number of ambitious European founders and to be able to support them financially during these critical first three to five years. with our start-up funds. With this growth fund, we can now support them in their development to become world leaders in the industry. We foresee a $ 50 billion growth opportunity in Europe over the next three years alone, and we want to be the first choice of these ambitious founders. ”
Rana Yared, General Partner, added: “Our approach for this fund will be ‘one of the few’. This means personalized attention from the entire partnership, as well as access to Balderton’s core platform team. We’re looking for 15 truly exceptional companies that have the potential to be industry leaders and disrupt global industries.