Notion Capital Raises $130M Growth Fund to Tackle Europe's Follow-on Gap
In a move aimed at bridging the gap in growth capital for European startups, London-headquartered Notion Capital has closed a $130 million growth fund, nearly twice the size of its previous one. The firm, which was one of the first in Europe to provide follow-on capital to its portfolio companies through an opportunities fund in 2017, will now invest outside of its existing portfolio.
According to managing partner Stephen Chandler, U.S. venture capitalists (VCs) have increasingly focused on their own market, creating an opportunity for European firms like Notion Capital to step in and fill the gap. "Some of the European companies we intend to champion from our new Growth Opps III fund are tied to the growing demand for more sovereignty, including those specializing in defense and supply chain logistics," Chandler said.
Notion Capital's focus on AI is also noteworthy, with Chandler describing it as a "super cycle" causing a profound shift in the way software is delivered and consumed. The firm will not invest in infrastructure or real estate, instead targeting companies that can benefit from the growing demand for more sovereignty and the increasing importance of AI.
The lack of growth capital in Europe has been a persistent issue, with many startups struggling to access funding beyond their early-stage rounds. Notion Capital's new fund is aimed at addressing this gap, providing much-needed support to European startups as they scale.
In 2017, Notion Capital was one of the first firms in Europe to close an opportunities fund, which provided follow-on capital to its portfolio companies. The firm has since become a leader in the European VC space, with a strong track record of investing in successful startups.
Notion Capital's new growth fund is not only a significant investment in European startups but also a vote of confidence in the region's ability to produce world-class technology companies. As Chandler noted, "We believe that by investing in these companies, we can help create real European champions."
The implications of Notion Capital's growth fund are far-reaching, with potential benefits for both the European startup ecosystem and the broader economy. By providing much-needed funding to startups, Notion Capital is helping to bridge the gap in growth capital and support the development of innovative technologies.
As the VC landscape continues to evolve, it will be interesting to see how Notion Capital's new fund performs and whether other firms follow suit. With its focus on AI and sovereignty, Notion Capital is well-positioned to capitalize on emerging trends and support the growth of European startups.
Background:
The lack of growth capital in Europe has been a persistent issue for many years, with many startups struggling to access funding beyond their early-stage rounds. This gap has been exacerbated by the increasing focus of U.S. VCs on their own market, leaving European firms like Notion Capital to step in and fill the gap.
Notion Capital's new growth fund is part of a broader trend of European VC firms seeking to address the region's funding needs. With its strong track record of investing in successful startups, Notion Capital is well-positioned to play a leading role in this effort.
Additional Perspectives:
The implications of Notion Capital's growth fund are not limited to the European startup ecosystem. By providing much-needed funding to startups, Notion Capital is helping to support the development of innovative technologies that can benefit society as a whole.
As Chandler noted, "We believe that by investing in these companies, we can help create real European champions." This sentiment is echoed by many in the VC community, who see Notion Capital's growth fund as a significant step forward for the European startup ecosystem.
Current Status and Next Developments:
Notion Capital's new growth fund is now open for investment, with the firm seeking to deploy its $130 million commitment over the next few years. As the VC landscape continues to evolve, it will be interesting to see how Notion Capital's new fund performs and whether other firms follow suit.
With its focus on AI and sovereignty, Notion Capital is well-positioned to capitalize on emerging trends and support the growth of European startups. As the firm continues to invest in innovative technologies, it will be exciting to see the impact of its efforts on the broader economy.
*Reporting by Techcrunch.*
