Balderton Capital has raised $ 375 million for its sixth EIF fund and other investors



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  Bernard Liautaud of Balderton Capital
Managing Partner of Balderton Capital Bernard
Liautaud.

Balderton
Capital


  • The venture capital firm of the United Kingdom Balderton Capital has raised
    $ 375 million (£ 281 million) for its sixth fund to invest in
    Initiatives of the Series A in Europe.
  • A source said that the company obtained successful support
    of the European Investment Fund: a major blow after the fund
    He stopped investing in the United Kingdom after the Brexit vote.
  • Balderton plans to invest more in France and
    Continental Europe with its new fund and has done 10
    investments already.
  • Managing partner Bernard Liautaud said the future of the United Kingdom
    as a technological center it remains in the air.

One of the largest venture capital companies in the United Kingdom, Balderton Capital,
has raised a sixth fund of $ 375 million (£ 281 million) and has resisted
a post-Brexit trend when landing at least part of the money of a
EU fund that is believed to have withdrawn from the United Kingdom.

Balderton Capital, founded in 2000, has endorsed a series of
successful startups like the Citymapper transport app, investment
Nutmeg platform and banking startup Revolut.

The firm will continue to focus on the new companies of the Serie A with its new
fund, which is backed by funds of funds, pension funds and others
institutional investors. Some sponsors are based in the United States but, in a
Growing trend, two sponsors are Asian. Balderton has done 10
new investments of the fund to date, including the company AI Sophia
Genetics
and Zego, an insurance company for workers in the gig economy.
founded by ex Deliveroo
employees
.

"The focus is on European entrepreneurs who have a plan to build
a great company, "said the managing partner of Balderton,
well-known French businessman Bernard Liautaud. "What we want to say with
Initial stage is Series A – we want to be the first
investor, after seed and friends and family. "

A typical first check could be between $ 5 million (£ 3.8 million)
and $ 10 million (£ 7.5 million) added. Startups will need a
adjustment and momentum of the product market.

It is a "duplication" of Balderton's previous strategy, Liautaud
he said, because it's working. He would not reveal the returns of
Fifth Balderton fund, but noted the fact that
The portfolio startups of the company have managed to raise
rounds after raising money from Balderton.

"When we look at our portfolio as a whole, they have raised $ 850
million (£ 640 million). That is a huge amount, "he said.

Liautaud added that Balderton probably invests more in
Continental Europe with the new fund.

"We are seeing more opportunities in France, and we will see
Balderton is investing beyond what we have [previously] "
Said Liautaud. "It is likely that the relative part between the United Kingdom and
Contingent Europe will be balanced towards continental Europe
than in previous funds. "

France has increased its quota
of VC money in the last year
thanks to local successes like
Criteo adtech firm, BlaBlaCar shared travel firm and big data firm
Talend In 2007, Liautaud Business Objects' own French company was
purchased by SAP for
€ 4.8 billion (then £ 3.3 billion).

When asked if he trusted a post-Brexit United Kingdom, Liautaud replied:
"I just do not know, the base is very strong for entrepreneurs,
that is still very good Other regions will rise to the
challenge, but I do not think people will suddenly leave the UK. "

Liautaud added that London still had advantages over other
European capitals, as its strength in finance and as a center
for talent Your future success, he said, would depend on talent
be able to emigrate to the United Kingdom once you leave the EU.

Balderton managed to earn European investment funds
Background

Balderton has managed to defeat a damaging post-Brexit trend with
your new fund, with new funds from the European Investment Fund
(EIF).

The EIF is an EU entity that has delivered billions to the UK to date
venture capitalists to encourage investment in European technology
startups Investment frozen in the United Kingdom after the country voted
leave the EU, with multiple firms based in the United Kingdom
affected by the sudden stop
. The EIF systematically denied it
had left the UK, but several fund managers told Business
Insider the fund had stopped investing.


 Azmat Yusuf citymapper
Azmat Yusuf, chief
Balderton home portfolio executive
Citymapper.


Getty / John
Phillips / Stringer



How did Balderton subsequently collect money from the FEI?

According to one source, it is likely that the EIF chose to invest
in the last Balderton fund because had already invested in
the fifth fund of the firm at $ 305 million (£ 228 million)
2014
. According to the source, the FEI will invest in funds
where you already have commitments, but not in any company recently
requesting funds after the Brexit vote.

Liautaud insinuated but did not confirm the participation of the EIF. A
source with knowledge of the matter confirmed the EIF
investment. The EIF did not comment.

He was asked about the difficulty of venture capitalists to find closing financing rounds after
Brexit, Liautaud said: "I think it depends on what kind of
background. Our background is very clear in its approach, it is initial stage, it is
Across Europe, we have invested across Europe for 15 years.
It is well known, we have a history, we are agnostics for the
region.

"I think it's more difficult for a fund that is a fund only for the United Kingdom in terms
to raise money from outside, maybe. Because we invest
everywhere we have not seen a problem. "

The rules of the FEI mean that you will only invest in funds that
they themselves support companies within the EU and other designated companies
eligible nations. That means a new fund that focuses on the United Kingdom
It is unlikely that new companies will collect money successfully from the EIF –
and can partly explain why Balderton intends to change his
balance of investments towards Europe.

After a summer of shame for US venture capital, Balderton is
screaming about ethics

Silicon Valley has had a hot media moment this summer,
with stories of harbadment in venture capital and new technology companies,
and mbadively unethical behavior like Uber covering up a
violation of important data.

There have been fewer such stories in Europe, and Liautaud wants
Balderton to proactively declare his pro-ethical position. To that
Finally, the firm is working on a manifesto as a kind of commitment
to integrity and ethical behavior in business.

"The steps in ethics have led to enormous problems," he said.
pointing out the technology to the VW emissions scandal, and Libor
It qualifies the scandal in finance. "It results in a fine of one billion dollars,
Elimination of management, and a reputation accumulated for years that is
completely fogged

"We believe that ethics is a powerful force to create business."

Sounds somewhat vague to an insider, but involves pledges
act with the best behaviors, integrity, do not push
in startups and avoiding "all the bad behaviors" we've seen.
Balderton separately has a harbadment policy in place.

Balderton also spent a year working on a guide for employees
equity in new businesses, after studying internships in the United States and
Europe. The guide is available for
public
with startups able to use the document as a base.

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