Seedcamp raises $28 mln for third fund

London-based Seedcamp has raised $28 million in the first close of its third fund. The target is $30 million.

PRESS RELEASE

Seedcamp launches 3rd fund; with a first close of $28M of $30mn to scale seed investing across Europe and builds its US presence.

Global investors from China, Russia, Europe and the Valley join forces to back ‘Seedcamp 2.0’ – a more extensive and ambitious approach to accelerating startups that will back 100 ventures over the next four years, with the aim of creating $1B businesses from across Europe.

Seven years ago, we set up Seedcamp to invest cash into a handful of startups each year, and to bring European founders and mentors into a cohesive ecosystem where we could all meet online and offline. Our mission was to accelerate European startups and to build a European ecosystem.

Today the game has changed. The problems that early accelerators, including Seedcamp, set out to address have either been resolved, or changed so much that a new solution is required. The ‘Art of the Start’ is now well honed in Europe. The challenge now is to master the ‘Art of Scale’, not least because European entrepreneurs’ ambitions have outgrown traditional forms of acceleration.

In our experience, providing the first $75,000 investment and a three-month program to support the growth of a $10m business is not good enough anymore. Breakout success is all about scale and getting the $200,000, $2M, and $20M of investment that will help build a $1B business.

Having run more than 80 events involving 10,000 startups, 5,000 mentors, and helping scale 120 Seedcamp companies, it is time for us to lead Europe into the next decade. The standard approach to acceleration made sense when we started. Now the accelerator model needs evolution, and armed with $30M in capital, we hope to redefine what it means to accelerate and scale an early stage company. We are able to be much more ambitious about the way we support startups, backing companies from ‘start to scale’.

We look forward to welcoming additional investors into Seedcamp in the 2nd close and of course 100 of the up and coming most ambitious European startups.

Network II Learning II Capital
Acceleration at Seedcamp means going from Start to IPO/M&A. We do this via a platform that focuses on 3 key pillars: Network, Learning, and Capital.

We’ve built our Network with the mindset towards connect Learning and Capital. With over 15K mentoring sessions held over the course of our last 7 years, we’ve facilitated over 60K connections between founders, corporates, product gurus, professional service providers, investors, and experienced serial entrepreneurs across the world. Access to our network is expansive and covers the global footprint from China through Europe across the US. Seedcamp has always been an immensely effective bridge to the US for European startups. As part of our efforts to continue to strengthen the US network therefore, Seedcamp will be opening a presence there in the Valley/San Francisco. The stronger US footprint comes as a result of seeing how the network has clearly had a material impact to the success of companies joining Seedcamp.

Learning is a continuous process… we know that half the battle early on in a company’s development is just having the right mindset and access to key learnings. With Seedcamp Academy, functioning similar to an MBA for Entrepreneurs, we provide just-in-time advice to all aspects of company development. Ranging from product to fundraising strategies, we’ve been able to help our founders hit product-market-fit faster and raise the necessary money to reach traction, growth, and scale. Accessing the Mentors through Academy means our Founders have access to the strategic and tactical playbook of the billion dollar club.

This combined access to key learnings and our network has resulted in outsize capital being raised by Seedcamp companies. 85% of our 120 companies raise the necessary funding from top tier investors across Europe and the US to scale their companies to the next stage. Along with the IPO and Exit track record of the Seedcamp LPs that are following-on in our companies, our startups continue to raise money from the best investors from Sand Hill Road and Manhattan to the West End and beyond! And with an average of $1.6M raised per company, there is no better place for the next 100 startups in Europe to raise the right amount of capital for their startups.

Over the coming 4 years, we want to evolve on all 3 of these key pillars. While we will continue to accelerate these startups with pre-seed capital ($35K-$75K) and access to the Seedcamp platform as we have for the last seven years, we believe that the model for acceleration is a constantly evolving process. With our ability to deploy capital four times as big, we look forward to leading the charge in defining the model for the next decade. As a result, we will also be backing our alumni, mentors, investors, and a network of founders who want to accelerate their seed stage startups with next stage capital ($75K-$250K) and the Seedcamp platform.

Back in 2007, our model made sense, and we led the way. Things change. The old accelerator model needs evolution, but Seedcamp is ready to lead the European industry once more. We are support money can’t buy. The next European break-out success will be a Seedcamp company. We hope you’ll be part of the journey.

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