## Atomico Raises $1.24 Billion to Support European Startups
London-based venture capital firm Atomico has recently raised $1.24 billion in new funds to back early- and growth-stage startups across Europe. This “largest ever fundraise” for Atomico consists of two separate funds: Atomico Venture VI, which is focused on Series A-stage companies, and Atomico Growth VI, which is dedicated to Series B through pre-IPO companies. This move by Atomico indicates a shift in focus towards later stages of startups’ journeys and aims to attract more risk-averse limited partners (LPs) who prefer investing in more established businesses.
### The Current State of European Tech Investment
The announcement from Atomico comes at a time when European startups are seeking signs of sustained market confidence. The European tech investment landscape has experienced a downturn, as evidenced by Atomico’s annual research reports on the European technology ecosystem. The most recent report highlighted a halving of European startup funding in 2023 due to geopolitical events, inflation, and interest rates. However, European VC funding in 2024 has shown signs of recovery, with Q2 data supporting the notion that the tech market is on better footing. Several prominent VC firms, including Accel and Balderton, have also recently announced new funds for early-stage and growth-stage startups.
### Atomico’s Journey and Funding Targets
Atomico, founded in 2006 by Skype co-founder Niklas Zennström, has a history of raising funds to support European startups. Its latest fund, the sixth in its series, surpasses its previous fund by more than 50%. However, the fundraise stands out because Atomico fell short of its funding target for its venture fund, while marginally surpassing its growth fund target. This discrepancy may indicate a hesitation among investors to back early-stage startups.
### Investments Made by Atomico
Atomico has already made 21 investments across both funds. In the growth-stage realm, Atomico Growth VI has invested in companies such as DeepL, Pelago, and Corti. In the earlier-stage realm, Atomico Venture VI has backed companies like Neko Health, Ben, Dexory, Deeploi, Strise, and Lakera. These investments demonstrate Atomico’s commitment to supporting startups at various stages of their development.
In conclusion, Atomico’s successful fundraise of $1.24 billion reflects the ongoing demand for investment in European startups. While the European tech investment landscape has faced challenges, recent data and the actions of prominent VC firms indicate a positive outlook for the industry. Atomico’s decision to allocate separate funds for different stages of startups’ journeys highlights the evolving needs and preferences of investors. As Atomico continues to support startups across Europe, the impact of its investments will be closely watched in the region’s tech ecosystem.