Revolut investor Balderton Capital unveils $400m seventh fund
One of London’s biggest venture capital players has today debuted its seventh early-stage fund for European startups at $400m (£311.1m), after a mooted lack of investor interest as the UK prepared for Brexit failed to materialise.
Balderton Capital, an early backer in the likes of Revolut, Citymapper and Lovefilm, said the new fund will continue to focus on its series A niche following “unprecendented momentum” in the European tech scene.
“I think the idea that like a day after an exit, suddenly the UK will fall off a cliff with regard to sort of entrepreneurial technology companies is clearly just not true,” Balderton partner Suranga Chandratillake told City PM
He added Balderton had yet to see any investor or company significantly change their behaviour as a result of the upcoming exit.
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“The UK is a great place for entrepreneurial investment. Europe is part of that recipe, but it is only one of the ingredients.”
Approximately a third of the fund will be put towards investing in UK companies, while the rest will be spread out across Europe.
It comes as 2019 has already broken records for foreign investment in British startups, surpassing the entirety of 2018’s intake in August. The UK is also expected to reach an all-time high for total venture investment by the end of the year.
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Chandratillake said Balderton will focus on emerging technologies such as artificial intelligence and quantum computing in its seventh fund, as well as more “mainstream” sectors like fintech and consumer brands.
The firm has plans to increase its internal staff by about 10 per cent by the end of 2020, and will also funnel more investment into its entrepreneur platform Build.
However Chandratillake warned the government must work to uphold the UK’s reputation as a “cosmopolitan, open, liberal society” if it wishes to avoid a post-Brexit drain on talent.
“All indications are positive, so I don’t have any real concern, but I think you have to keep an eye on it,” he added.
Image credit: Balderton Capital