Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

A new $400 million tech fund wants to help European start-ups compete with Silicon Valley and China

A new $400 million tech fund wants to help European start-ups compete with Silicon Valley and China

Balderton Capital has raised a new investment fund that focuses on start-ups seeking Series A financing. The London-based venture capital firm says its new fund will make roughly 12 investments per year. Balderton has now raised a total of $3 billion across eight separate funds to back European tech firms.

Venture capital firm Balderton Capital is launching a new $400 million fund, which it says will be used to invest in early-stage European tech start-ups.

Balderton said Tuesday that the fund is targeted at start-ups raising funds at the Series A stage -in other words, businesses that are looking to raise their first significant round of funding. The company, which is based in London, added that the new fund would make roughly 12 investments per year.

Europe’s tech sector is seen as lagging behind its U.S. and Chinese counterparts, especially when it comes to venture capital, or VC, inflows and valuations. There have been some signs that the industry on the continent may be gathering steam though.

Last year, a report by another VC firm, Atomico, said that Europe was home to twice as many tech initial public offerings as the U.S., while newly-listed European firms were seen to be outperforming their American rivals. A prominent IPO in 2018 was that of Adyen’s, the Dutch payments firm, which has seen its share price rise over 50% since it debuted.

Lars Fjeldsoe-Nielsen, a general partner at Balderton, told CNBC he doesn’t think Europe is far from creating a tech firm that can rival Silicon Valley giants like Facebook and Google or large internet companies out of China like Alibaba and Tencent.

“I don’t think we’re far away at all,” said Fjeldsoe-Nielsen, a former Uber executive. “I spent 10 years in the Valley prior to joining Balderton. For me, there’s this shift that’s happened that means we’re not lagging behind now.”

He did however add that Europe is home to tech companies with much lower valuations than their U.S. and European peers, but said this was due to “considerably lower” hiring and housing costs. The venture capitalist suggested that interest from American investors in Europe’s private tech firms gave Balderton more impetus to launch a new fund.

“We’re actually seeing a lot of U.S. funds doing investments in Europe as well, because the tech talent is on par with what we’re seeing in the U.S.,” he said. “But the valuations are lower here. So there is an opportunity in the immediate future right now that is attractive.”


Profitability ‘the name of the game’

Fjeldsoe-Nielsen referred to Revolut, a U.K. financial technology firm Balderton invested in, as an example of a company vying to compete with U.S. and Chinese behemoths. Revolut is reportedly seeking a $1.5 billion financing round comprised of both equity and convertible debt that could value it at up to $10 billion. The company has declined to comment.

But one thing that has been haunting the VC industry of late is the flurry of unprofitable tech firms looking to go public in the U.S. The recent shelving of WeWork’s IPO and SoftBank’s deal to rescue the office rental start-up has added to concerns over such lossmaking businesses.

“The name of the game is profitability now,” Fjeldsoe-Nielsen said, adding that tech companies have been staying private for much longer. “I think WeWork has really helped emphasize that.”

Revolut, which Balderton first backed in 2015, ran up a £32.8 million ($42.2 million) loss in 2018, according to its most recent accounts.

Known for backing primarily European start-ups, Balderton said the launch of its latest fund means it’s raised over $3 billion in total across eight separate funds. Other than Revolut, the company’s portfolio includes German farming upstart Infarm and Swedish scooter-sharing firm Voi Technology.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×