TLDR:
- Balderton Capital is investing $1.3bn in European tech start-ups, including an early-stage fund and a growth fund.
- The firm has a history of backing successful companies like Revolut and GoCardless.
Article Summary:
London-based venture capital firm Balderton Capital is showing a strong interest in European tech start-ups by injecting $1.3bn into the industry. The firm disclosed plans to channel $615mn into an early-stage fund and another $685mn into a “growth” fund meant to support more established companies. Balderton Capital has a track record of backing successful ventures like Revolut and GoCardless, with previous investments in companies like Darktrace and Depop.
Balderton’s move comes at a time when European VC investment is on the rise, reaching $15.5bn in the second quarter of 2024. While AI remains a top segment for investment, the firm’s managing partner Bernard Liautaud expressed caution about pouring excessive capital into AI infrastructure. Instead, he suggested that start-ups leverage existing AI infrastructure developed by tech giants like Microsoft and Google.
Liautaud emphasized the importance of companies reaching larger scales to achieve successful IPOs, indicating that mergers and acquisitions are crucial for VC funds to realize their investments. Balderton Capital’s global investors include major entities like a US state pension fund and British Patient Capital, aligning with the firm’s mission to be a partner of choice for European tech founders.
