VC Atomico Close to Raising $1.2 Billion for Its New Fund for Early and Late-Stage Startup Companies

By Adriaan Brits Wednesday, November 24, 2021

Atomico is expected to announce a new $1.2 billion startup fund, according to CNBC. The European venture capital (VC) company provides funding for innovative tech startup companies.

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Raising Over $1 Billion to Identify Future Tech Unicorns

The VC company has reportedly nearly completed funding for an early-stage fund of about $400 million to support new startup companies. Furthermore, Atomico is also raising funding for another “late-stage” fund with about $800 million in capital commitments to invest in established startup companies.

Additionally, the VC business has continued to raise funding, according to the report. Hence, it won’t come as a surprise that Atomico could announce a new fund again.

It remains unknown how much capital Atomico needs to secure for its funds and when it will announce them officially. Founded in 2006 by Skype co-founder Niklas Zennstrom, the VC company so far has closed funding for five different funds. The last fund was announced in February 2020 with $820 million in raised capital.

Through its previous funds, Atomico invested in some of the highest-valued startup companies, which included fintech business giants Stripe and Klarna. The VC business also provided funding for the eVTOL startup company Lilium and AI chip manufacturer Graphcore.

Over the past 10 years, the amount of VCs that invested in European startup companies has been on a sharp rise. Some of the biggest US VC businesses have expanded into European hubs like London.

A number of VC companies recently announced large funds, including London-based VC Balderton Capital, which announced a new $600 million fund. This is Balderton Capital’s largest-ever fund focused on early-stage startup companies as the company pushes to become the top VC investor in European startup companies. Just several months ago, Balderton Capital unveiled its early growth fund to support future tech titans from Europe.

As many as 13 of Balderton Capital’s portfolio companies have become unicorns this year. The investment business raised seed or Series A funding for a number of startup companies. Some of these companies include Aircall, Beauty Pie, ComplyAdvantage, Contentful, Depop, Dream Games, GoCardless, Infarm, Labster, Revolut, Vestiaire Collective, and Zego.

Moreover, Sofinnova Partners has also secured €150 million ($169 million) in funding for its early-stage environmental impact fund. A new climate tech VC World Fund launched a €350 million ($394.2 million) fund to back startup companies that develop technology to help fight climate change. World Fund has been incubated by Google rival Ecosia and is poised to become the largest climate tech fund in Europe.

World Fund’s new program is backed by more than 60 business investors, including current and former tech entrepreneurs across Europe, as well as several limited partners (LPs). The VC fund is seeking to save two gigatons of CO2 emissions by 2040.

Zennstrom says he founded Atomico 15 years ago “because there were not enough investors who had been founders.”

Summary

Atomico, a European VC company that backs innovative tech entrepreneurs, is expected to announce a new $1.2 billion startup fund, according to CNBC. Roughly one-third of the fund will be used to back early-stage startup companies, with around $800 million secured for more established startups.


About the Author

Headshot of Adriaan Brits

An analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in advanced analytics and media.

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