Atomico, the London-based venture capital firm, has taken a major step in boosting Europe’s tech ecosystem by raising an impressive €1.12 billion across two new funds, its largest-ever fundraising effort. This move is expected to help European start-ups overcome growth barriers, particularly in a challenging global market for venture capital.
The larger of the two funds, Atomico Growth VI, has secured €681 million to support companies from Series B to pre-IPO stages. This growth fund will play a crucial role in scaling companies to international markets, providing the necessary capital and strategic guidance to help them navigate later-stage challenges. Atomico’s other fund, the €438 million Venture VI, is focused on earlier-stage investments, primarily targeting Series A but with flexibility for seed-stage opportunities. This two-pronged approach ensures that Atomico can support founders throughout their entire entrepreneurial journey.
Atomico’s move comes at a critical time when Europe’s tech ecosystem, now valued at around $3 trillion, is beginning to rival more established markets like the U.S. and Asia. With nearly 30% of global early-stage funding now directed to Europe, the continent is producing more new start-ups than any other region. Atomico’s new funds will provide much-needed support to further fuel this growth, helping Europe’s tech start-ups scale globally and bridge the funding gap that many later-stage companies face.
Despite economic headwinds, Atomico’s founder, Niklas Zennström, believes European tech is entering its prime. He emphasises that investors with experience and long-term vision are essential to help founders navigate fluctuating market conditions. Indeed, Europe has seen a significant drop in late-stage venture funding in recent years, with mature start-ups hit hardest by economic volatility. Atomico’s Growth VI fund aims to address this gap, providing a lifeline to companies poised for international expansion.
Atomico has already made 21 investments from these new funds, supporting a diverse range of sectors, including AI, healthcare, and deep tech. Companies like Germany’s AI-driven translation service DeepL and Denmark’s medical AI firm Corti have already benefited from Atomico Growth VI, highlighting the firm’s focus on high-impact industries. On the early-stage side, Venture VI has invested in companies like Stockholm’s Neko Health and Zurich’s Lakera, demonstrating Atomico’s commitment to backing transformative technologies across Europe.
This massive fundraising effort puts Atomico in a strong position to continue driving innovation across Europe. As more companies look to scale, Atomico’s capital, combined with its hands-on approach and operational expertise, will help unlock new opportunities for the next generation of European tech leaders. For investors and founders alike, the launch of these funds signals Atomico’s confidence in Europe’s potential to lead the global tech landscape in the years to come.
(Source: EU-Startups, Silicon Canals, The Tech Portal, PitchBook, Tech.eu)