• Tech sector in Europe is seen as lagging behind when compared to its Chinese and U.S. counterparts
   
• Interest from American investors in private tech sector of Europe encouraged Balderton to launch a new fund

Balderton, a venture capital firm has recently unveiled a new $400 million fund which will be used to invest in novel European tech start-ups. The company mentioned that the fund targets start-ups seeking funds at the Series A stage and also businesses that are looking to raise their first substantial round of funding.

Apparently, Balderton, which is headquartered in London, stated that the new fund would make around 12 investments per year. When it comes to venture capital, inflows and valuations, the tech sector of Europe is seen as lagging behind when compared to its Chinese and U.S. counterparts.

Atomico mentioned in 2018 that Europe recorded two times the number of tech initial public offerings than the U.S., while recently listed European companies were witnessed to be outpacing American contenders. A prominent IPO in 2018 was of Dutch payment firm- Adyen, which has noticed its share price soar over 50% since it first launched.

Balderton general partner Fjeldsoe-Nielsen said the interest from American investors in private tech sector of Europe gave Balderton more momentum to launch a new fund. The company has also observed that the U.S. funds are making investments in Europe as well, as tech talent is on par. However, the valuations are currently lower, so there is an opportunity in the near future that is appealing.

Balderton, reportedly known for supporting European start-ups, mentioned that the launch of its latest fund signifies that it has raised more than nearly $3 billion in total through eight separate funds. Besides Revolut, the portfolio of the company includes Swedish based scooter sharing firm Voi Technology and German farming upstart Infarm.

For the uninitiated, Balderton Capital is a venture capital firm headquartered in London, UK, that invests in novel technology and internet startup companies, mainly in Europe.

Source Credit: https://www.cnbc.com/2019/11/11/balderton-capital-closes-new-fund-to-invest-in-european-tech-startups.html