Atomico, the venture capital firm founded by Skype’s co-creator Niklas Zennström, has raised $1.24 billion to invest in emerging and growth-stage tech startups across Europe. This marks a substantial increase from their last round in 2020 and comes at a crucial time for Europe’s tech industry, which has been facing declining valuations and layoffs. Atomico’s new funds include $754 million for startups at the growth stage and $485 million for early-stage ventures, providing critical financial backing as venture funding in Europe nearly halved last year.
The European tech landscape has experienced significant shifts, with the combined value of private and public tech companies surpassing $3 trillion in 2023, despite a $400 billion loss in 2022 due to a drop in market capitalization. Atomico’s previous analysis noted that venture funding in Europe dropped to $45 billion in 2023 from $82 billion the previous year, reversing the soaring valuations seen during the pandemic years.
The new funds aim to fuel European tech’s global ambitions. Zennström emphasized the importance of ambition and commitment from founders in seizing this moment. Atomico has supported major companies like Stripe and Klarna, both of which are rumored to be considering initial public offerings (IPOs) soon, potentially offering substantial returns for the VC firm.
As IPO activity has slowed, investors are looking to 2025 for a resurgence in tech listings, with hope that these key players will lead the charge.
Featured Image courtesy of Growfers
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