Atomico Raises $1.24 Billion in Largest Ever Fundraise to Back European Startups
In a move that could indicate the true direction of the market, Atomico, one of Europe's largest venture capital firms, has closed new funds totaling $1.24 billion to support early- and growth-stage startups across the region. The London-based firm has split the funds into two pots: $485 million for Series A-stage companies and $754 million for Series B through pre-IPO, marking its largest ever fundraise.
This strategic approach allows Atomico to focus on both early and later stages of a startup's journey, catering to risk-averse investors who may be hesitant to invest in pre-profit companies. This comes at a time when the global venture capital sphere is experiencing a downturn, with Europe also feeling the impact.
Atomico's latest fundraise follows its reputation for providing insightful research reports on the European technology ecosystem. The firm's most recent report highlighted a decrease in European startup funding in 2023 due to various economic factors.
Despite the challenges, European VC funding in 2023 was slightly above pre-pandemic levels, indicating a potential recovery in the tech market. Recent data and new fund announcements from other prominent VC firms in the region further support this optimistic outlook.
Founded in 2006 by Skype co-founder Niklas Zennström, Atomico has steadily increased its funds over the years. However, the latest fundraise stands out for its two distinct focuses, reflecting investor sentiment towards later-stage companies.
While Atomico fell short of its venture fund target, it has already made significant investments across both funds, supporting companies like DeepL, Pelago, and Corti in the growth stage, and Neko Health, Ben, and Strise in the early stage.
In conclusion, Atomico's latest fundraise showcases a shift in focus towards later-stage startups, aligning with the evolving landscape of the European tech market. Investors should pay attention to these developments as they may impact investment opportunities and the overall health of the startup ecosystem.