Balderton Capital, a prominent investor in Revolut, has successfully raised $1.3 billion aimed at supporting European technology startups. The London-based venture capital firm announced the funding on August 12, detailing that the amount comprises $615 million from its Early Stage Fund IX and $685 million from its Growth Fund II.
Liautaud highlighted the impressive returns generated by European VC funds, which have outperformed their North American counterparts over both 10 and 15-year periods.
Balderton has played a crucial role in Revolut’s journey, having been one of its earliest investors and now the startup’s largest backer. Recently, Revolut achieved a milestone by becoming the most valuable startup in Europe, with a $45 billion valuation following an employee share sale. Liautaud remarked on the significance of this achievement, stating, “You can imagine how much that propels the fund.
While Balderton’s focus remains exclusively on European startups, this approach has led the firm to miss out on several high-profile artificial intelligence (AI) startups that are flourishing in Silicon Valley. This contrasts with the U.S. venture capital landscape, where funding for AI projects has surged, reaching a quarterly high of $55.6 billion in the second quarter of 2024, a 47% increase from the previous quarter.
However, there are indications that investors are becoming more selective regarding AI projects, as many stocks that previously soared during last year’s AI frenzy have seen declines, according to a recent report from the Financial Times.
Balderton’s new funding rounds signify a robust commitment to nurturing innovation and supporting ambitious entrepreneurs in Europe’s tech ecosystem, as the firm continues to capitalize on the region’s growing potential.
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