TLDR:
- Balderton Capital has raised $1.3 billion for European tech startups with the funding divided between an Early Stage Fund IX and a Growth Fund II.
- Balderton has been investing in Revolut since its early days and recently became the most valuable startup in Europe with a $45 billion valuation.
Balderton Capital, a London-based investor in tech startups, has successfully raised $1.3 billion for European tech firms. The funding is split between the company’s Early Stage Fund IX, which received $615 million, and its Growth Fund II, which received $685 million. This fundraise reflects the growing vibrancy of the European venture capital (VC) space, with more people starting businesses with global ambitions.
According to Balderton managing partner Bernard Liautaud, European venture investments have seen a significant increase over the years. In 2008, investments in European startups were under $8 billion, but last year, they exceeded $50 billion. Additionally, European VC funds have outperformed North American funds over 10 and 15-year periods.
Balderton’s significant investment in Revolut, a FinTech startup, has paid off, as the company recently became the most valuable startup in Europe with a $45 billion valuation. However, Balderton’s focus on European startups means it has missed out on high-profile artificial intelligence (AI) startups based in Silicon Valley. This has become a growing trend, as AI projects in the U.S. have seen substantial funding, particularly in the second quarter of 2024.
Despite the focus on AI, investors have become more selective about AI projects, as evidenced by a Financial Times report showing stock drops in AI-based companies that weren’t able to demonstrate tangible evidence. This trend highlights the importance of solid performance and evidence in the AI sector to attract investors.
