TLDR:
- Venture capital firm Accel has raised a $650 million fund to invest in early-stage companies in Europe and Israel focusing on artificial intelligence and cybersecurity.
- The fund will be Accel’s eighth and will invest in 25 to 30 new companies, with a particular interest in AI companies emerging in hubs like London and Paris.
Venture capital firm Accel has announced the raising of a $650 million fund to invest in early-stage companies in Europe and Israel, with a specific focus on artificial intelligence and cybersecurity. This is Accel’s eighth fund since its London office opened in 2000. Accel has a history of backing over 200 companies across 20 countries in the region and currently has investments in more than 100 companies. The fund is expected to take about three years to invest fully, with a typical fund life of around 12 years. Accel plans to make investments in 25 to 30 new companies. The firm is known for its early investments in successful companies like Meta and Dropbox, as well as major European companies like Deliveroo, Spotify, and Supercell.
According to Dealroom data, the European and Israeli VC market has been rapidly growing, with investments reaching $66 billion in 2023 compared to $150 billion in the US. Accel’s partner, Harry Nelis, stated that AI is expected to be a significant platform shift over the next decade, and the firm plans to place multiple bets on AI companies. While AI companies of interest can emerge across Europe, hubs such as London and Paris, due to institutions like DeepMind and Facebook AI Research (FAIR), have become centers for AI development. DeepMind, based in London, is an AI research laboratory now owned by Alphabet, while Meta’s FAIR in Paris serves as a hub for AI advancements.
This new fund signals Accel’s confidence in the potential for growth and innovation in the AI and cybersecurity sectors in Europe and Israel. With a track record of successful investments and a keen eye for emerging technologies, Accel’s latest fund is poised to make an impact on the startup landscape in these regions.
