European venture capital firm Seedcamp has raised a new fund of $320 million, significantly larger than its sixth fund in 2023. The new capital will be allocated in two parts: one portion will continue to invest in early-stage startups, while the other will be dedicated exclusively to follow-on investments in growth-stage companies. The firm is also preparing to expand its U.S. team to strengthen its network of projects and capital in the region.
Funds are allocated to two separate funds.
In this fundraising, $220 million will go to Seedcamp VII, primarily for early-stage investments; an additional $100 million will go to the newly established Select Fund for follow-on investments in growth-stage companies.
According to Seedcamp’s management, the early-stage fund will continue its traditional strategy of investing in startups at the earliest possible stages—before products are fully formed, revenue is established, or operations have scaled. The growth fund will focus on later-stage investments, primarily targeting Series B and beyond.
- Seedcamp VII's initial investment per deal is approximately $1 million.
- The plan covers approximately 100 to 120 startups.
- Select a single investment of approximately $3 million to $5 million
The U.S. team will continue to expand.
Seedcamp currently has offices in New York and Miami. As San Francisco and Silicon Valley have reemerged as key hubs for tech entrepreneurship and funding, the firm is preparing to further expand its U.S.-based team.
The management stated that the focus of this move is not merely to increase office locations, but to help its European portfolio companies more quickly connect with U.S. customers, investors, and industry resources. For a European fund known for its early-stage investments, the ability to access the U.S. market has become a crucial component in unlocking further value from its investments.
Continue the early betting strategy
Seedcamp has previously been an early investor in several well-known tech companies, including Revolut, UiPath, Wise, and Synthesia. The firm states that its current portfolio includes over 550 companies, among them 12 unicorns, with assets under management totaling approximately $1 billion.
The limited partners of this fund include the British Business Bank, HarborVest, Schroders, and Sofina, along with 80 founders from its portfolio companies who have invested as angel investors.
In terms of investment focus, Seedcamp stated it will continue to maintain a cross-sector portfolio but will continue to avoid business models that are highly capital-intensive, such as mobility and certain platform-based models. The firm believes that companies in these sectors rely heavily on working capital in their early stages, which does not align with its investment style favoring commercial efficiency.