Balderton Capital, a leading European venture capital firm, has announced the successful raise of $1.3 billion to support tech startups across Europe.
The firm raised this amount through two new funds—$615 million for its Early Stage Fund IX and $685 million for its Growth Fund II. These funds aim to support European entrepreneurs from the seed stage through to IPO, reaffirming Balderton's commitment to nurturing the region's most ambitious tech startups.
This massive influx of funds is one of the strongest indicators of recovery in the European VC sector, which had remained flat following the post-ZIRP and COVID bull run of 2021 and 2022.
About Balderton Capital
Balderton Capital, a London-based venture capital firm, has been a significant force in the European tech ecosystem since its founding in 2000. Specializing in early and growth-stage investments, the firm has built a portfolio that includes prominent companies such as Revolut, Depop, and MySQL.
Balderton focuses exclusively on European startups, positioning itself as a central player in backing innovative startups across the continent. The firm has been instrumental in propelling various companies to global leadership.
Balderton Looking to Capitalize as the European Tech Scene Gains Momentum
The European tech scene has grown substantially over recent years, with venture investments climbing steadily. In fact, European VC funds have outperformed their North American counterparts over 10- and 15-year periods.
Balderton’s latest funds are set to capitalize on this momentum, with a particular focus on sectors such as artificial intelligence, fintech, B2B SaaS, and digital health. Checkly, SAVA, Tinybird, Qargo, Huspy, and Payflows are just some of the 12 new investments the firm has added to its portfolio over the last year.
Indeed, the London-based Balderton pointed to research that said European VC funds have outperformed VCs in the U.S. over 10- and 15-year periods, based on data from both Invest Europe and Cambridge Associates.
While Balderton’s big play is backed by the data, the firm is not 100% sticking to conventional wisdom. The firms focus on Europe, for example, means that it has not jumped on the train of investing in foundational AI companies out of Silicon Valley, like Anthropic and OpenAI.
Paris-based Mistral was also notably absent as a new addition to Balderton’s portfolio. Along with Wayve and poolside, these European AI-based startups currently account for nearly 20% of all VC funding on the continent.
However, this doesn’t seem to have held back Balderton, with partner Suranga Chandratillake revealing to TechCrunch that “We raised [these funds] faster than we’ve ever raised them before. It was about 80% reupping of existing LPs.”
A Growing Tech Hub
Balderton Capital’s $1.3 billion fundraising underscores Europe's growing importance as a tech hub. With its strong track record and clear focus on nurturing European startups, Balderton is set to play a pivotal role in shaping the future of technology in the region.
