Atomico's $1.24 Billion Milestone Fund for European Startups
The Rise of European Startups
Funding surge in European tech is evident as Atomico raises $1.24 billion to support startups from seed to pre-IPO stages. This milestone reflects the venture capital firm's commitment to empowering the region's entrepreneurial ecosystem.
Breaking Down the Funds
- Early-Stage Investments: $485 million is allocated primarily for Series A and some seed investments.
- Growth Investments: $754 million will support entrepreneurs from Series B to pre-IPO.
Atomico, founded by Skype co-founder Niklas Zennström, has over 155 investments across 15 European countries, indicating a strong track record in nurturing successful firms, including unicorns like Klarna and DeepL.
Challenges and Opportunities Ahead
While early-stage funding in Europe is leading globally, there’s a marked decline in late-stage funding. In 2023, this funding type nearly halved compared to the previous year. Laura Connell, Partner at Atomico, highlights the pressing need for increased growth capital and calls for institutional investors to close this gap.
- Overall fundraising remains challenging with fewer active investors.
- However, a recovery is on the horizon as VC investments rise in the first half of 2024, driven by energy and GenAI startups.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.