Atomico's $1.24B Fund Elevates European Startups from Seed to Pre-IPO Stage

Atomico Raises $1.24B for European Startups

Atomico, one of Europe's largest venture capital firms, has successfully raised $1.24 billion to propel startups in the region from seed to pre-IPO stages. This marks its largest fundraise to date, although it slightly misses the initial target of $1.35 billion.

Details of the New Funds

• The first fund has secured $485 million for early-stage companies, focusing on Series A and seed investments.
• The second fund will target growth investments with an allocation of $754 million for entrepreneurs from Series B to pre-IPO.

The Vision Behind Atomico

Founded in 2006 by Skype co-founder Niklas Zennström, Atomico has taken a founder-focused approach with over 155 investments across 15 European companies. Currently, one in six portfolio startups is valued above $1 billion, including notable names like DeepL and Klarna.

Europe’s Growing Competitive Edge

According to Zennström, “European technology is coming of age.” Data reveals Europe outpaces the US in early-stage company creation, accounting for around 30% of global early-stage funding. However, the late-stage funding environment poses challenges, with a nearly 50% drop in 2023 compared to the previous year.

The Path Forward

Laura Connell, Partner at Atomico, emphasized the necessity for more growth capital in Europe, calling for collaboration among institutional investors and emerging venture funds to bridge the current funding gap. Despite a tough fundraising environment, there are indications of recovery, with VC investments reaching $29 billion in the first half of 2024, spurred by energy and GenAI sectors.