London-headquartered Northzone has announced that its newest fund has raised in excess of €1 billion. Not only is this the firm’s largest raise to date, but one of the biggest venture capital refuelings across the European ecosystem.
Founded in 1996, over the course of the firm’s 26 years in operation and now 10 funds, Northzone has secured the support of LPs to the tune of over $2.8 billion, and for good reason. With no less than 45 exits, including Spotify’s direct listing which valued the company at $26.5 billion, and PayPal’s acquisition of iZettle for $2.2 billion, it’s clear that betting in Northzone is a fairly sound bet.
Counting over 150 investments to date, Northzone says the renewed capital will be used to continue to build upon its track record of success, investing in fintech, healthtech, SaaS, workplace software, consumer apps, and entertainment companies across Europe and the US, from seed stage right on through to IPO.
“The tech, the talent and the growth trajectories are an order of magnitude greater than a decade ago. Raising €1 billion recognises the enormous ambition of European founders and the capital they need to create world-beating businesses.” - Northzone Partner, Jessica Schultz
Looking beyond just the money, with the close of its 9th fund, or IX as it's been dubbed, one that saw $500 million flow into the coffers, Northzone began to expand its offering to the founders it chooses to support. In addition to the marketing and talent and business development initiatives and services on tap, perhaps none is more apparent than last week’s announcement of the firm’s creation of the role of Head of Sustainability and the appointment of Anna Skarborg to the position.
While a variety of factors have contributed to a slowing of VC activity in recent months, as evidenced by not only Northzone's raise, but EQT Growth's announcement of a new $2.2 billion fund, backers are taking the moment(s) of uncertainty to line the coffers and be armed and ready to charge out onto the battlefield when futures look a bit more certain.
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