While the injection of capital into companies has taken a summer nap, some venture capitalists continue to see their coffers overflowing.
Three years after raising a $500 million fund, a European venture capital firm North area is back with what the partners call its “biggest fundraising yet” of €1 billion, or $1.01 billion, for its tenth fund.
Same for Peru. Salkantay Ventureswho said he was closing the $26 million for its first fund, Salkantay Exponential Fund. Luis Daniel Arbulú, partner at Salkantay, told TechCrunch via email that the fund is “the largest venture capital fund in the country” according to data from PitchBook and Crunchbase.
Colleagues Natasha Mascarenhas and Ingrid Lunden also wrote about some big funds last week, including Oakland-based Kapor Capital, which also last week announced its biggest fund to date of $126 million, and EQT Growth, based in Stockholm, which closed at $2.2 billion. . Lunden wrote that it is the “first fund EQT Growth has raised specifically for technology investments, and is one of the largest growth funds to date for the first time in Europe”.
In addition to these, Citi announced the expansion of its Citi Impact Fund to $500 million, which is more than triple the amount of the banking giant’s initial commitment. And that of Eyal Ofer OG Tech has raised $400 million for his second fund, while Phase 2 Capital raised $150 million for its third fund.
Michiel Kotting, Northzone’s partner in Amsterdam and London, told TechCrunch the fund was raised “in attractive market conditions.” Northzone started to rise after the market crash, but was still able to secure funding from existing and new partners, he said.
“The good thing is that the company has been around for 27 years, we’ve been through different cycles,” Kotting added. “We have delivered in spades for our LPs and we trust them to also perform well in the current circumstances. The pool is much bigger than before because we believe the opportunity is in Europe and the US East Coast is really starting and will only get bigger.
Northzone’s new fund focuses on some of the same things as its previous funds, such as targeting Europe and the US East Coast and investing primarily at the Series A and B levels with some selective seed investments. One of the company’s most notable releases is Spotify.
What’s new is that a small portion of the new funds has been allocated to an opportunity fund, New York-based firm partner Wendy Xiao Schadeck told TechCrunch. Xiao Schadeck joined the firm in 2021.
For years, Northzone looked at its US counterpart’s sectors in those that were synergistic with those in Europe – for example, technology, healthcare and enterprise SaaS. However, the company is also extending this to crypto and web3, Xiao Schadeck said.
“We’re keeping an incredibly open mind for the next generation of founders to define totally new categories as well,” she added. “Creating vectors and creating new ways to deliver value to consumers and businesses is something we constantly monitor, especially as our industry teams also work together.”
Salkantay Ventures’ new fund is backed by a group of investors, including Dutch Good Growth Fund, Bancóldex, Capria Fund, IDB Lab and the Peruvian Fund of Funds, managed by COFIDE. Salkantay is one of 16 investment partners in the Capria Network, under Capria Ventures.
The company invests throughout Latin America, with a focus on the Andean region, in the areas of maximizing human potential, economic inclusion and sustainability.
Luis Daniel Arbulú, a partner at Salkantay, explained via email that this region is experiencing “a significant gap in basic services such as education, health and financing which further widens the socio-economic parameters”. The company is looking for early-stage startups that are working to fill these gaps using technology.
So far, the company has invested in 14 startups, including Minu, Sang, Leal, Aprende Institute, Manzana Verde and Migrante.
He also said the fundraising environment was a bit difficult. As such, the company decided to start small.
“We started with a small close to make investments to prove to LPs that our seasoned team, although managing the fund for the first time, and our thesis could provide early signals of success,” Arbulú added.