London growth investor raises €525m for new technology fund
A London investment firm has raised €525m for a new technology fund as it looks to tap into high growth UK and European tech businesses.
Sprints Capital, which has backed firms including digital bank Revolut and wine app Vivino, sailed past the €450m target for its Fund IV and says it will now use the funds to target growth stage technology firms in the UK and Europe.
Fund IV has already backed two of Europe’s leading circular economy tech companies including Vinted, Europe’s largest pre-owned fashion marketplace, and Back Market, a platform for shoppers to buy and sell refurbished electronics.
The $450m funding round for Back Market, announced this week, was led by Sprints Capital and valued the firm at $5.7 billion.
The new Fund IV was backed by Sprints’ entire existing investor base with the firm’s management team also lending “significant support” to the new fund, the company confirmed.
Henrik Persson, Managing Partner of Sprints Capital, told CityAM: “We have been investing in growth companies for the last decade.
“Our economy is ever changing and moving forward so it is always a good time to invest in growth companies. The difficult part is to pick the right ones.”
The launch of the fund comes after recent figures have revealed a dearth of growth capital for innovative UK firms.
Figures from Innovate Finance recently revealed a stark funding gap for fintech businesses at the growth stage. Of £11.6bn channeled into UK fintechs last year, just $1.6bn went to companies at the growth stage while $7bn went to businesses in late stage rounds.