Seedcamp launches $30m fund to back European tech start-ups

‘Seedcamp 2.0’ to back 100 ventures over next four years

London-based start-up accelerator Seedcamp today announced the launch of a new $30m fund, set to invest in early-stage tech businesses across Europe.

Described as a “more extensive and ambitious” approach by the leading European accelerator, the ‘Seedcamp 2.0’ fund is four times larger than either of the organisation’s previous funds, and will back around 100 European ventures over the next four years.

Seedcamp said it hoped to create $1bn worth of tech businesses with the fund, which is backed by a network of global investors from China, Russia, Europe and Silicon Valley.

The new fund will be accompanied by what Seedcamp termed an “evolution” of its accelerator model, which will back businesses over a longer period than the three-month programme currently in operation at the company.

Seedcamp said its current three-month model, which provides $75,000 investment, was “not good enough anymore” on its own, and said the biggest challenge faced by promising tech businesses is now one of scaling up the operation, rather than simply starting up.

The original Seedcamp programme will remain in operation following the fund’s launch, but the London-based accelerator said it will also back its alumni, mentors, investors and a network of founders with next stage capital of up to $250,000.

Seedcamp also announced it will be opening an office in Silicon Valley in order to strengthen connections with its network of VCs, start-ups and investors in the US.

In a statement on its blog, Seedcamp said: “With our new fund, we’ll be in a position to provide more money, and at an earlier stage, because we are now four times bigger.

“We’re better because we have a higher quality of investors – both in our limited partnership (LP) base and among our startups investors.  We’ll be getting deals done more quickly thanks to a standardised approach to legal documents and the streamlined process we have developed over the last seven years. And we’ll be supporting many more ventures: 100 startups in three years compared to 100 in six years under the old model.

“We hope we’ll be a part of a movement that will completely change the venture acceleration business in Europe – from the kinds of entrepreneurs who get backing, to what a venture support platform means, down to who the LPs are.”

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