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Atomico Secures $1.24 Billion in Record-Breaking Fundraise to Boost European Startups

Startups

Business Honor
09 September, 2024

European VC Giant Atomico Makes Bold Move with Two New Funds to Support Early and Growth-Stage Startups

Atomico, one of Europe’s leading venture capital firms, has achieved a landmark in its funding history by closing a staggering $1.24 billion across two new funds. This significant raise, described as Atomico's largest ever, aims to support both early and growth-stage startups throughout the region.

Based in London, Atomico’s new funds include “Atomico Venture VI,” which has amassed $485 million focused primarily on Series A companies, with some allocation for seed-stage investments. The firm has also launched “Atomico Growth VI,” a substantial $754 million fund dedicated to Series B and pre-IPO companies. This dual-fund approach mark a notable shift for Atomico, which has traditionally focused on earlier funding stages but is now equally committed to nurturing startups through their later growth phases.

This strategic move reflects a broader trend among venture capital firms to mitigate risk by separating funds for different stages of a startup's lifecycle. It also addresses a cautious investment climate, allowing risk-averse limited partners to invest in more established ventures rather than early-stage startups.

Atomico’s decision comes at a time when European startup funding saw a significant decline in 2023, impacted by geopolitical tensions, inflation, and interest rates. However, recent developments, including new funds from other prominent VC firms such as Accel and Balderton, suggest a potential rebound in the market. Atomico’s substantial investment could signal a brighter future for European tech, offering a hopeful perspective amid the challenging economic landscape.