Balderton Capital, one of Europe’s prominent venture capital firms known for backing fintech giant Revolut and autonomous driving startup Wayve, has announced a substantial $1.3 billion raise across two new funds. The London-based firm allocated $615 million to its Early Stage Fund IX and $685 million to its Growth Fund II, signalling a strong commitment to nurturing both emerging and scaling European startups.
This fresh capital injection arrives at a pivotal moment for European venture capital, which has been slowly rebounding after a period of stagnation following the post-COVID bull market of 2021-2022. Industry experts see Balderton’s successful fundraiser as a promising sign of renewed investor confidence in the region. Despite global economic uncertainties, European venture capital funds have reportedly outperformed their U.S. counterparts over the last decade, according to research from Invest Europe and Cambridge Associates.
Balderton’s partner, Suranga Chandratillake, shared that the fundraising process was notably smooth, with 80% of the funds coming from existing limited partners. The firm also attracted investment from a major U.S.-based institution, underscoring the growing recognition of European venture capital as a stable and vital part of the global investment landscape.
Despite the optimistic outlook, Balderton has made some strategic choices that reflect the evolving nature of the tech industry. Notably, the firm opted not to invest in Mistral, a Paris-based AI startup that has garnered significant attention. Chandratillake explained that while Mistral is a promising company, it would require vast amounts of capital to stay competitive with industry leaders, a commitment that doesn’t align with Balderton’s early-stage focus.
Instead, Balderton is positioning itself to invest in startups that leverage AI technology to solve specific problems, rather than in companies developing foundational AI models that demand substantial funding. The firm’s portfolio already includes Wayve, which raised the largest single round of any AI company in Europe, demonstrating Balderton’s confidence in the potential of AI-driven innovation.
The broader industry response to Balderton’s approach has been largely positive. Brent Hoberman, founder of firstminute Capital, praised the firm’s Europe-focused strategy and the continued growth of European VC funds. Others, like Susanne Najafi of BackingMinds VC, highlighted the increasing competitiveness of European growth funds, which could reduce the reliance on U.S. capital.
However, some voices in the industry, such as Andrew J. Scott of 7percent Ventures, caution that European VCs need to take bolder bets on foundational technologies to prevent U.S. dominance in AI, space, and robotics—areas that will shape the future just as the web and cloud computing have shaped the past.
Balderton’s latest move is a clear indication of its commitment to fueling European innovation, but the firm’s strategy also reflects the cautious optimism that pervades the current venture capital landscape. As the industry continues to evolve, Balderton’s disciplined approach and selective investments could prove pivotal in shaping the next wave of European tech success stories.
