LONDON–(BUSINESS WIRE)–Twenty years in European tech
After greater than 20 years targeted on backing Europe’s most bold early-stage founders, Balderton Capital is launching a devoted development fund to increase its assist to European founders scaling the following world tech giants.
Whereas that is the primary time the agency has expanded to a totally new stage of main investing, Balderton already holds one of many largest development stage portfolios in Europe, having backed a few of Europe’s most profitable startups from a really early stage. The agency invested at Seed or Collection A in world leaders Aircall, ComplyAdvantage, Contentful, Depop, GoCardless, Infarm, Labster, Revolut, THG, Vestiaire Collective and Zego. The agency’s Liquidity I portfolio additionally consists of a few of Europe’s main development firms, resembling Darktrace, Flywire, Graphcore and Truecaller.
Balderton predicts a formidable enhance within the European development stage alternative
Balderton sees an unprecedented alternative for development stage investing in Europe. Together with a maturing expertise ecosystem, market disruption attributable to the coronavirus pandemic has favoured innovation. The variety of offers between $5m and $50m in Europe has been rising steadily year-on-year, with deal counts in these ranges now accelerating quicker than within the US. Ten years in the past, the US was doing 5 instances the variety of enterprise offers in comparison with Europe. Right this moment that ratio has greater than halved.1 All indications level to extra prime quality European firms reaching a stage of maturity the place they want skilled European development capital.
“I’ve been an investor at Balderton since 2008, and it has been unimaginable to see the growing variety of bold European founders, and to have the ability to assist them financially via these important first three to 5 years with our early stage funds. With this Progress Fund, we will now assist them as they scale to grow to be world business leaders. We predict a $50 billion development alternative in Europe within the subsequent three years alone, and we need to be the primary alternative for these bold founders,” stated Bernard Liautaud, Managing Associate.
The fund will goal distinctive firms on the early-growth stage and is sector-agnostic. Balderton expects to take a position between $25m and $50m per firm via each main and secondary investments.
Rana Yared, Basic Associate, provides: “Our method for this fund can be ‘certainly one of few’. This implies personalised consideration from your entire partnership, plus entry to Balderton’s main platform group. We’re on the lookout for fifteen or so actually distinctive firms which have the potential to be sector leaders and disrupt world industries.”
World-class development group
Balderton Progress I can be led by a world-class group of skilled investor operators: Balderton’s Managing Associate, Bernard Liautaud; Basic Associate David Thévenon, beforehand at Google and Softbank; and Basic Associate Rana Yared, beforehand at Goldman Sachs. This group brings distinctive expertise to share with Founders, having been on the board of world giants throughout Europe, Asia and the US, together with Seize, SoFi, Lemonade, Talend, THG, Tradeweb and Unqork .
Balderton’s Progress group may even be supported by the agency’s equal Partnership. Balderton’s Companions are equally vested in each Portfolio firm’s success, and all Founders profit from entry to the total group’s expertise and assist.
Portfolio management groups may even have entry to Balderton’s wider group, which has now grown to over 50, together with useful specialists in advertising, expertise, authorized and finance, and 23 traders throughout key European hubs together with London, Berlin, Paris and Stockholm.
David Thévenon, Basic Associate at Balderton stated: “We’ve got been fortunate sufficient to have spent the previous twenty years deeply embedded within the European tech ecosystem, working with tons of of extraordinary founders. Our companions are a combination of financiers, tech operators and founders themselves, and collectively we’ve a deep understanding of the alternatives and challenges of scaling globally from the continent. This fund will enable us to increase our assist, not solely to our current portfolio but in addition to Europe’s most promising future world leaders.”
Constructing on momentum
This fund follows Balderton’s launch of Europe’s first dedicated secondary fund, Liquidity I in 2018, and the agency’s seventh Collection A fund in 2019, and it comes after a file yr for each Balderton and its portfolio.
Within the 18 months since January 2020, 22 new firms have joined the Balderton portfolio, and the agency has remodeled 45 follow-on investments. There have been three IPOs, with THG in 2020, (the second most useful expertise IPO in Europe); Darktrace in 2021; and Flywire in 2021. The agency has additionally seen eleven portfolio exits since January 2020, together with Digital Surgery’s acquisition by Medtronic, Peakon’s acquisition by Workday and Depop’s acquisition by Etsy.
As well as, firms within the Balderton portfolio have themselves raised greater than $5bn since January 2020 to gasoline development, of which near $1.7bn has been because the starting of 2021. The portfolio now employs over 25,000 employees in over 50 nations around the globe.
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About Balderton Capital
Balderton Capital is Europe’s main enterprise agency targeted solely on backing the perfect European-founded expertise firms. Within the twenty years since its founding, Balderton has labored with tons of of extraordinary European founders, and has raised 4$bn throughout 9 funds. Earlier exited investments embrace Betfair (FTSE: BET), Depop (Etsy), Digital Surgical procedure (Medtronic), Frontier Automobile Group (OLX Group), Magic Pony (Twitter), NaturalMotion (Zynga), Peakon (Workday), Recorded Future (Perception Companions), Dawn (Microsoft), Talend (NASDAQ: TLND) and Yoox Internet-a-Porter (BIT: YNAP). Balderton’s present portfolio consists of: Aircall, Carwow, Citymapper, Contentful, ComplyAdvantage, Darktrace (LON: DARK), Flywire (NASDAQ: FLYW), GoCardless, Graphcore, Infarm, Kobalt Music, Nutmeg, Prodigy Finance, Revolut, SOPHiA Genetics, Tessian, THG (LON: THG), VanMoof, Vestiaire Collective, Vivino and Zego.
For extra data see http://www.balderton.com or comply with @balderton.
1 Supply: Pitchbook