A venture capital firm called Balderton Capital is trying to level the playing field between China, the United States, and European tech companies. The fund, Balderton states, is aimed at startups raising funds within their Series A funding scheme i.e., companies that are trying to get their first set of significant funding. Balderton notes that the fund is aimed at providing financing primarily for European startups, in keeping with the company’s drive to make the region more technologically competitive and is valued at $400M. The company states that it intends to make at least twelve new investments per year.
European Tech Challenged by Lack of Funds
The largest tech production today comes from China and the US. Both the Chinese and the Americans can maintain their level of competitiveness due to the massive influx of money from private or public investment. European tech companies are lagging behind these leaders on the tech stage. Balderton believes this is because the area isn’t seeing enough venture capital funding and intends to change that.
The investment seems like a good one since a report last year stated that Europe saw twice as many tech IPOs as the US and that those companies were significantly outperforming their American counterparts. Lars Fjeldsoe-Nielsen, a general partner in Balderton and a former Uber executive, believes that Europe is on the cusp of creating a tech industry that could rival and possibly surpass the US.
A Mature Market
The European market offers a very positive investment environment for venture capital companies. The US, however, has been inundated by a series of tech flops. Profitability is what venture capital firms look at when financing businesses. The launch of Balderton’s latest fund suggests that the company has raised over $3 billion across eight different, distinct funds. Balderton has been primarily focused on the European market, and this fund keeps along with that trend.