EQT Ventures III closes Europe's largest venture capital fund committed to early-stage tech startups
EQT Ventures III holds final close at EUR 1 billion of fee-generating commitments, and EUR 1.1 billion of total commitments, to invest in European and North American early-stage tech startups
The Fund, which includes participation from a wide range of European, North American and Asian institutional investors, foundations, and endowments, will make investments of EUR 1-50 million in founder-led startups using technology to try and solve some of the biggest challenges facing society
EQT Ventures III brings total commitments raised across the EQT Ventures Funds to EUR 2.3 billion since launching in 2016. The EQT Ventures Funds have completed over 100 investments, of which nine have reached a valuation above EUR 1 billion and 18 have been exited. EQT Ventures III has already led investments in 13 companies, including Juni, Nothing, Knoetic and Candela
EQT Ventures III and EQT Growth together bring EUR 3.5 billion of new commitments to invest in early- and growth-stage technology companies, cementing EQT’s position as a leading tech investor
Stockholm, 9 November 2022 – EQT has closed Europe’s largest venture capital fund committed to early-stage tech startups. EQT Ventures III (the “Fund” or “Ventures III”) closed with total commitments of EUR 1.1 billion, of which EUR 1 billion is fee-generating, bringing the total commitments raised across the EQT Ventures’ Funds to EUR 2.3 billion since launching in 2016.
Taking place during a time of market uncertainty, the successful fundraise is evidence that investors still have an appetite for early-stage technology focused funds despite the challenging macroeconomic environment, turning to proven and high-conviction teams with a hands-on approach.
The EQT Ventures Funds have made over 100 investments in six years, including nine companies that have reached a EUR 1bn+ valuation, including Wolt, Small Giant Games, Einride, Handshake, Netlify and Instabox (today Instabee). The Fund has already backed and supported 13 companies as the lead investor. EQT Ventures III will continue to support companies using technology to solve some of the biggest challenges facing society by investing in sectors such as climate tech, food tech, the creator economy, energy, fintech, software, data & IT infrastructure, deep tech and more.
The Fund’s global investor base - with institutional investors, foundations and endowments across Europe, the Americas and APAC - reflects its international presence and outlook. From its offices in six countries, the EQT Ventures Advisory Team is focusing on helping founders expand their businesses globally - European startups into the US and vice versa. The EQT Ventures Funds currently have portfolio companies in 16 geographies.
Lars Jörnow, Partner at EQT Ventures, said: “EQT Ventures was founded to give entrepreneurs the investor that we would have wanted on our company board. Now, with a freshly raised EUR 1.1 billion, an advisory team of founders and operators, and being backed by EQT, one of the world’s biggest tech investors, EQT Ventures is here to continue the journey as half startup, half VC, investing holistically in early-stage tech startups, giving founders a fast track to scale.”
The EUR 1.1 billion close of EQT Ventures III follows the recent close of the EQT Growth fund, at EUR 2.4 billion in total commitments, cementing EQT’s position as a leading tech investor. EQT Ventures and EQT Growth are both committed to investing in high growth private tech companies; they are two separate business divisions, with separate funds and advisory teams. EQT Ventures makes initial investments between EUR 1-50 million, while EQT Growth makes initial investments between EUR 50-200 million at later stages of the company growth journey.
Per Franzén, Head of Private Capital and Deputy Managing Partner at EQT, said: “Coming shortly after the close of EQT Growth, EQT Ventures’ successful fundraise is a real vote of confidence in EQT’s active ownership approach to investing. The capital raised across both funds means EQT has now raised new commitments of EUR 3.5 billion to private market tech, consolidating our position as one of the world’s largest tech investors. By driving collaboration across EQT Private Capital we will continue to be at the forefront of technology investing across strategies.”
Alastair Mitchell, Partner at EQT Ventures, concluded: “Now is the time to back category leaders, those driving innovation to change the world for the better. EQT Ventures was set up to give founders the best chance of reaching scale, irrespective of the macroeconomic climate. We’re an advisory team of founders and operators that have weathered cycles and have experience creating global businesses. The Fund will double down on EQT Ventures' proven European track record, while continuing to grow the impressive portfolio of US startups scaling internationally.”
The EQT Ventures funds are advised by over 40 founders and operators across offices in Stockholm, London, San Francisco, Berlin and Paris with a 50/50 gender split. With the new fund, the advisory team will be able to grow further by hiring in Europe and the US, with the ultimate goal of making EQT Ventures the most supportive early-stage investor across both markets.
The team’s guidance to the portfolio is assisted by its proprietary AI market intelligence tool, EQT Motherbrain. Motherbrain is used to source investment opportunities – having assisted EQT Ventures source 15 investments to date, representing EUR 200m of invested capital in total. It also provides market intelligence to founders within the EQT Ventures portfolio.
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