After 18 years of specializing in Europe, early-stage investor Seedcamp stated on Monday that it had raised $320 million for its newest fund which can see it increasing its presence in the US.
Fund VII is the funding agency’s largest up to now, double the $180 million it had raised for Fund VI in 2023. Nonetheless, Seedcamp is splitting that quantity to focus extra on growth-stage investments: $220 million is slated for Seedcamp VII, its automobile for early-stage investments, whereas the remaining $100 million is being put aside for growth-stage, follow-on investments by way of a brand new fund referred to as Choose.
Seedcamp already has workplaces in New York Metropolis and Miami, however the agency is now getting down to develop the workforce Stateside in an effort to attach extra of its European portfolio to U.S. clients and buyers, particularly with San Francisco and Silicon Valley regaining their place as a middle of gravity lately.
“We have to plug founders to nodes which can be connective,” Reshma Sohoni, Seedcamp’s co-founder and managing associate, advised TechCrunch.
Sohoni stated the agency will proceed its thesis of being one of many first buyers in upcoming startups, be they pre-product, pre-revenue, and even pre-traction. The agency is tapping its intensive community of portfolio startups and LPs for dealflow.
That thesis has served Seedcamp nicely. The agency was one of many first buyers in a number of profitable tech firms, together with Fluidstack, Hopin, Pleo, Revolut, Synthesia, UiPath, and Smart. It has 12 unicorns in its portfolio of greater than 550 firms, and $1 billion in belongings beneath administration.
Seedcamp VII is seeking to make investments roughly $1 million as a primary verify in about 100 to 120 startups, and comply with on in later rounds, per Sohoni. The expansion fund will make investments about $3 million to $5 million per verify, following on in Collection B rounds and later.
Sohoni stated restricted companions in Fund VII embody British Enterprise Financial institution, HarborVest, Schroders, and Sofina, in addition to 80 of its portfolio firm founders who’ve pitched in as angel buyers.
Seedcamp will proceed to speculate throughout sectors, Sohoni stated, although she did word the agency will proceed to avoid capital-intensive companies, like mobility or marketplaces.
“We are inclined to keep away from capital-intensive startups as a result of funding working capital isn’t a terrific mannequin on day one […] We’re positively a commercial-driven investor,” stated Sohoni.
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