Atomico has secured $1.24 billion across two new funds. This European venture capital firm, made by Skype co-founder Niklas Zennström's, will be using the funds to providing capital for startup companies across Europe.
How Atomico Will Help European Startup Companies
As detailed by Techcrunch, Atomico has divided the fresh capital into two different investments: the first, Atomico Venture VI, totals $485 million for early-stage startups, primarily those at the Series A stage.
The second, Atomico Growth VI, is $754 million and directed toward later-stage companies from Series B up to pre-IPO. This two-pronged approach will position Atomico well to cater to the different needs of startups across their growth cycle.
The decision by Atomico to invest most of its capital in later-stage companies would be helpful in the long run, as opposed to what most investors think.
In a report by Vestbee, investors increasingly avoid funding early-stage startups, where volatility is much higher. But by helping them instead, it would allow conservative investors like Atomico to enter an investment scenario in which scaling-up companies are already established, while still retaining a strong presence in the early-stage market.
Based on Bain Company's statistical report, the global venture capital market is on a downtrend, and European startups have not been an exception. Funding to startups in the region halved this year due to factors such as inflation, geopolitical tension, and rising interest rates.
Some optimists believe these figures may be stabilizing now, with Atomico's new funds signaling renewed confidence in the European tech ecosystem.
Currently, CNBC shared that the new funds have already made Atomico invest in several startups, ranging from healthcare technology firm Neko Health to logistics firm Dexory.
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