Revolut and Synthesia early backer Seedcamp raises $320M, invests in US

An early backer of Revolut and Synthesia has raised $320m and is deploying the capital across two funds, as it looks to discover the top European companies of the future.

London-headquartered Seedcamp, one of Europe's most well-known VCs, is also upping its presence in the US, as it looks to give the European companies it backs the best chance of success, it says. Seedcamp is allocating $220m for Seedcamp VII, its seventh first-check fund.

Another $100m is being deployed across its Select fund, which is its second growth fund, which focuses primarily on backing startups as they scale toward Series B and beyond.

Since launching in 2007 with a $2.5m first fund, Seedcamp now manages over $1bn in AUM (Assets Under Management) and says it has delivered some of the strongest venture fund returns in Europe.

For example, it says Seedcamp Fund III has now returned over 13x DPI (Distributed to Paid-In Capital) to its Limited Partners. DPI measures how much a fund returns to investors.

Seedcamp, which mainly invests in Eurpoe and Israel, said it's also expanding its team in the US, as a key pillar of Fund VII is creating what it's calling a "Transatlantic Bridge" between European founders and the US market, with a dedicated New York office.

Seedcamp says this will give founders direct access to US capital, commercial and technical hires, and the customer networks they need to scale into the US market from day one.

Seedcamp Select fund is also based in New York. Seedcamp said that at Series B and beyond, founders need scale capital, and New York is one of the major hubs for it. It added that being on the ground in New York means Seedcamp can connect its companies to that capital.

Sia Houchangnia, partner at Seedcamp, said: "There was a time when European founders waited for permission to dominate global markets.

“That era is over. Whether it’s a teenage dropout in Warsaw, a repeat founder in Paris, or a deeptech spinout from Zurich, the level of ambition is immediate and total. We’ve expanded our team and US presence to match that drive."