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Startups in Europe , faced with an on-going economical slowdown in the region , continue tostruggle on the fundraising front . Meanwhile , European VCs that are hedging their bets by growing their stress on startup that either have a global / U.S. play in mind — or are in the U.S. already — are seeing a lot of interest from LPs . TechCrunch has learned exclusively thatFrontline Ventureshas lift $ 200 million across two funds , name Frontline Growth and Frontline Seed , to keep make betsacross the pond .
It ’s not the only one : Giant Ventures in January closedtwo new funds sum up $ 250 millionto endow in startups on both sides of the Atlantic .
Frontline believe that U.S. musical scale - ups , generally , have much beneficial betting odds at deliver the goods when they expand their operations to the other side of the Atlantic . “ Though it is a traditionally undervalued market , Europe calculate for over 30 % of spherical revenues of top - performing B2B software companies at IPO , ” Brennan O’Donnell — the Colorado - lead of Frontline Growth with Stephen McIntyre — said in a statement .
“ Traditionally undervalued ” is well - worn phrase applied to Europe ’s venture landscape . And stats detailing how financing has dropped off since 2021 do not help . However , things are n’t quite as bad as the headline seem to state once you stop comparing late investment trend to the manna from heaven times of 2021 and early 2022 . startup on the continentstill raise more chapiter last class than they did back in 2019 , concord to a report by law of nature house Orrick . And Europe was the only major region to see investment level remain above pre - pandemic norms — Asia and North America both come poorly by that measured .
O’Donnell and his partner at Frontline have been vocal about Europe ’s value as a marketfor some timeand have even corroborate it withsome researchof their own . Frontline wants to ensure that its U.S. company do n’t leave money on the board by not expand to Europe when they should .
Expansion roadmap
O’Donnell told TechCrunch that when Frontline helps portfolio company navigate elaboration to another market , it concentrate on timing , go - to - market strategy , talent , and organisational design and position .
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That ’s by order of grandness , and a company ’s location should be a differential coefficient of the previous three prospect , O’Donnell said . “ at long last , fix comes down to where your customers are and where the endowment al-Qaida that you require to in effect support those customer is . ”
Frontline has already put this framework into action over the last few old age , supporting portfolio companies like hour package caller Lattice and compliance platform Vanta with elaborate to Europe .
Lattice bring up $ 175 M at a $ 3B evaluation for its multitude management weapons platform
“ Lattice expanded at a fourth dimension when it was n’t obvious , ” O’Donnell explained . Although the company put its plan into activity during the pandemic , when people still were n’t actively getting on planes , there was also a sense that the 2020 dip would n’t last , he said , add up that there were some tailwinds for hour technical school . Fast - forward a few year , and that conclusion establish “ very successful . ”
One of the pitfalls Frontline warns against is “ winner amnesia ” : Just because a company enjoys a certain storey of success in the U.S. does n’t mean it will fare well in Europe , too , without a deliberate strategy .
“ Vanta develop as quickly as it did during our first 18 months in Europe thanks to Frontline ’s counseling , ” said Christina Cacioppo , co - founder and CEO of Vanta . “ We tripled our client stem , quadrupled our squad , and cemented Vanta as the mart leader globally thanks to Brennan , Stephen and the Frontline squad . ”
Besides its partners and offices in London , Dublin , Palo Alto and New York City , Frontline has also built a community of executives in the European and Middle Eastern part to shape a meshing that its portfolio companies can tap . “ Over the last dyad of years , we have tear together a community for the top 200–250 VPs and g of EMEA , and we do regular events . ”
Speaking about the firm ’s current portfolio , O’Donnell said that he anticipates an initial offering for one of its investments , likely one of its fledged , growth - stage startups — within the next 18 month , although he did n’t specify which one .
Talking of Frontline Seed , O’Donnell observe the firm has an “ especially strong track record book when it come to helping companies parent their Series A. ” Considering that pre - seed and seed investments have n’t slow down as much as late stagecoach , avoiding this constriction could be of value to European startups hoping to become transatlantic scale - ups , or perhaps even initial public offering campaigner .
Dublin ’s Frontline Ventures get up new $ 83.8 M seed fund for European B2B startups