Atomico, a European venture capital firm, has successfully closed two new funds totaling $1.24 billion. The funds aim to support both early- and growth-stage startups across Europe.
This represents Atomico’s largest fundraising venture to date, demonstrating a robust commitment to nurturing innovation and technological advancement within the region.
Largest Fundraise to Date
One of Europe’s most prominent venture capital firms, Atomico, has made headlines by closing two substantial funds amounting to $1.24 billion. This remarkable achievement is described by Atomico as its “largest ever fundraise” and highlights the firm’s increasing influence and commitment to supporting the European startup ecosystem.
Breakdown of the Funds
The two funds, “Atomico Venture VI” and “Atomico Growth VI,” are distinct in their focus. The first fund, at $485 million, is primarily directed towards Series A-stage companies with some allocations for seed investments. Meanwhile, the $754 million “Atomico Growth VI” is allocated for Series B through pre-IPO companies.
Strategic Focus on Later Stages
By focusing on late-stage investments, Atomico can attract contributions from more risk-averse limited partners (LPs). LPs can now channel their funds into more stable businesses rather than a single fund that covers a broad range of stages.
Context of the Global Downturn
Atomico’s annual research reports shed light on the state of the European technology ecosystem. The latest insights showed a 50% drop in European startup funding in 2023, driven by geopolitical events, inflation, and rising interest rates.
Interpreting the Market Data
Interestingly, despite the decline, European VC funding in 2023 was slightly above pre-pandemic levels. Some see this as a sign that the tech market may have stronger underlying foundations.
Previous Fundraising Efforts
The two areas of focus in Atomico’s latest fund tell their own story. Atomico was aiming for $600 million and $750 million for the venture and growth funds, respectively. While surpassing its growth target, it fell short of the venture target by nearly 20%.
Current Investments by Atomico
For earlier-stage companies, Atomico Venture VI has invested in startups such as Neko Health, Ben, and Dexory since early 2022.
Significance of the New Funds
Atomico appears well-positioned to continue its influential role in shaping the European startup landscape.
In a challenging economic environment, Atomico’s successful closure of $1.24 billion across two funds underscores its resilience and strategic foresight.
With a dual focus on early and later-stage startups, the firm is poised to drive technological innovation and growth within Europe’s dynamic startup ecosystem.
Source: Techcrunch