Technology venture capital firm Balderton Capital has announced $1.3 billion in new funds to back European entrepreneurs.
Balderton announced its $615 million Early Stage Fund IX and $685 million Growth Fund II to back entrepreneurs from seed stage through IPO.
“There was strong investor demand for Early Stage Fund IX and Growth Fund II, which marked the first time Balderton raised its early and growth funds simultaneously,” said Balderton.
“The increasingly global mix of LPs in the firm’s funds have been attracted to Balderton’s European focus and track record of success during its 25 year history.
“This includes one of the largest and most prominent public state pensions in the United States, building out a selective European VC portfolio, and British Patient Capital, the UK’s largest domestic investor in venture and venture growth opportunities.
“There is now a long and diverse history of Europe as a key hub for global tech, with proven winners across sectors and countries. In just the last two years, Europe has established itself as a leader in AI, with London and Paris being the key innovation centres.
“The reasons for this are not surprising or new: world class institutions and engineers, a growing culture of entrepreneurialism, a developed funding ecosystem and, increasingly, third and fourth generation founders.
“The growth of the European technology ecosystem has created strong returns for investors as well.
“European VC funds outperformed North American funds over both a 10 and 15 year period, according to data from Invest Europe and Cambridge Associates.”
Balderton said that since its founding in 2000, it has invested in more than 275 technology companies from across Europe.
The current portfolio includes Revolut, Dream Games, GoCardless, Contentful, Aircall, Wayve, Writer and PhotoRoom.
“Many previous portfolio companies have successfully exited, such as Darktrace, Depop, MySQL, Peakon, Recorded Future, Talend and THG,” said Balderton.
“Balderton’s investment history spans technology sectors including AI, fintech, B2B SaaS, digital health, mobility, gaming and marketplaces.”
Bernard Liautaud, Managing Partner, Balderton Capital, said: “At Balderton, we believe the best way to change the world is to build a business – and that many of these world-changing businesses will be built in Europe.
“As a firm, our mission is simple: to be the partner of choice to the founders starting and growing those European technology companies. These new funds put us in a position to do just that.”