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Image Credits:Jose Sarmento Matos/Bloomberg — Atomico founder Niklas Zennström
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As European startups continue tolook for signs of sustained market confidencebeyond the hype around AI society , Atomico — one of the region ’s more iconic , largest speculation capital letter firm — has raised more money to make investment that might indicate how the market is really move . The VC has close Modern funds totaling $ 1.24 billion to back early- and growth - phase startups across the realm .
London - free-base Atomico is describing this as its “ enceinte ever fundraise , ” although technically it is across two bay window of money . “ Atomico Venture VI ” weighs in at $ 485 million for mostly Series A - stage companies ( with some reserve for seed ) , and a separate $ 754 million investment firm — dubbed “ Atomico Growth VI ” — is for Series B through pre - initial public offering .
Raising and allocating money from separate funds is distinctive of many venture capital house today , but that Atomico closed two freestanding funds , lead by freestanding teams , is notable . The firm has historically leaned toward earlier funding rounds while dipping into later stage where it made common sense . Now it ’s setting itself up to focus just as much on the tardy stages of a startup ’s journey with a dedicated fund .
This move could also point to a trepidation among some in the investor fraternity who are hesitating to put money into fledgling pre - profit companies . By setting things up this way , it becomes prosperous for Atomico to institute contributions from more risk - averse circumscribe partners ( LPs ) into the fray by enabling them to impart their cash into seek and tested businesses , rather than back a single fund that may span anything from seed to Series F.
The news also comes amidsta downturn in the global speculation cap field , a trend to which Europe has not been impervious .
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Among the thing on which Atomico has built a reputation is its annual inquiry news report on the country of the European engineering ecosystem , which focalize on how the venture capital end of the market is faring . Its most recent report made for grim version , noting that amid an on-going downturn , European startup fundinghalved in 2023 , drive by factor such as geopolitical event , inflation and pursuit rates . It also find out that the mart , and investing data , had been skewed by 2021 and 2022 because of the global pandemic .
European VC funding last yearwas actually slightly above pre - pandemic figures . An optimist would interpret that as a sign that the tech market may be on better basis than the darker datum might suggest . Q2 2024 datacouldsupport that thesis , as would a swathe of new funds from several large VC firms in the neighborhood . Back in May , Accel announced a novel $ 650 million fundfor early - stage startups , while more recentlyBalderton unlock $ 1.3 billion across two new funds — $ 615 million for early - stage , and $ 685 million for ontogenesis - phase .
Falling short
Founded in 2006 bySkype co - father Niklas Zennström , Atomico launch ab initio with a $ 73 million stock , and in the cheeseparing two decades since it launched a$165 million fund II(2010),$476.6 million fund III(2013),$765 million fund IV(2017 ) and$820 million fund V(2020 ) .
Atomico ’s in vogue fund go by its last by more than 50 % . However , according to filings with the Securities and Exchange Commission ( SEC ) last year , Atomico was seeking$600 millionand$750 millionrespectively for its venture and growth funds . In unforesightful , while it surpassed its target on the growth side , Atomico fall short of its venture target by almost 20 % .
On the one hand , it make more sense for Atomico to allocate more immediate payment to later - stage companies given that its portfolio of investing has mature over time . What were once former - stagecoach companies are now in full scale - up mode , requiring more money than ever . On the other hand , devolve short of its support objective for early - phase startups is revelatory that few investors are willing to back neophyte companies than Atomico had hoped .
Atomico says that it has already made some 21 investments across both fund , including several from Atomico Growth VI into its portfolio , including DeepLandPelago , as well as leading on the Series B rotund ofCorti . In the early - phase realm , Atomico Venture VI hasplowed Johnny Cash into Neko Health , Ben , Dexory , Deeploi , StriseandLakera , dating back to when the investment trust first open in early 2022 .
