As per PitchBook, the total value of European venture capital funding deals for startups dropped in the first half of 2023 by over 60% as compared with the same period in 2022. In addition to the declining VC funding, the market slowdown is characterised by a stagnant IPO market, and underrepresented founders receiving limited investor support. Also, private market valuations on several prominent companies such as Turkish delivery company Getir, and Swedish fintech Klarna took a plunge in down rounds.
Despite the slowdown in investment, Highland Europe closed its new €1 billion fund in January and Dawn Capital raised $700 million last month. The VC firms have closed funding despite the challenges, including rising inflation.
Atomico’s $1.1B fundraise
Now, Financial Times reports have revelead that the London-based venture capital firm Atomico has raised $1.1 billion funding. Atomico’s substantial fundraising round highlights investors’ ongoing commitment to supporting promising tech companies, even in the face of economic uncertainties. Also, it demonstrates the resilience of the industry and the continued willingness of investors to back promising tech firms, despite the challenging economic climate.
Atomico, which has $5 billion under management, has previously raised $820 million for its fifth fund in 2020. “I thought there was such potential in Europe for more companies like Skype to be created. Let’s break the [Silicon Valley] monopoly. We could build the same thing or even better in Europe,” said founder Niklas Zennström said in an interview.
Supports European startups
Atomico was set up in 2006 by Skype founder Niklas Zennström and has established itself as one of Europe’s most prolific tech investors. It has backed over 130 startups with the recent investments by Atomico in European companies, including Amsterdam-based assessment platform TestGorilla, $11.5 million in female-led climate tech startup Vaayu, Danish healthcare startup Corti, electric flying startup Lilium, and Norwegian startup Strise.
The funds raised will be used to support the growth and development of innovative tech companies across Europe. The capital will be used across its venture and growth funds.
