Octopus Ventures announces $140m “later-stage” fund

Fund will provide follow-on rounds of up to £25m in existing portfolio companies and later-stage high-growth firms

Venture capital firm Octopus Ventures has announced the launch of its $140m fund – Octopus Zenith Opportunities II LP – with the aim of investing in fast-growth, later-stage European businesses.

Primarily, the fund will provide follow-on investment from £250,000 to £25m in its existing portfolio companies and into well high-growth later-stage companies. This marks a departure from its traditional focus on early stage firms and will allow Octopus to back businesses from inception to further development.

The fund recently led a $60m round alongside Google Ventures into luxury travel site Secret Escapes.

Established in 1999 as part of the Octopus Group, London-based Octopus Venture has backed over 80 global businesses including Zoopla, Graze, Secret Escapes and YPlan and has over £5bn of assets under management.

Alex Macpherson, head of Octopus Ventures, said: “The Octopus Opportunities fund is a really exciting development that enables us to keep travelling with some of our existing entrepreneurs for longer, while also providing additional funding to find new investment opportunities.

“Recent years have seen significant changes in both the London and wider European technology markets; the rise of $1bn business valuations across Europe has been particularly well documented.

“As the European ecosystem continues to develop and mature, this $140m fund allows Octopus to continue backing talented entrepreneurs from an early stage, but then to provide crucial on-going support, remaining an investment partner as they go on to build big, enduring businesses.”

Want to find out more about Octopus Ventures? Read our interview with Octopus’ Will Gibbs here.

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