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The amount of money being invested into tech startups is rising year on year with the most recent figures suggesting that UK tech firms raised £1 billion in the first six months of 2015.

Here we've rounded up some of the biggest venture funds that startups can contact when they're looking to raise money in order to grow their businesses.

 

1. Octopus Investments 

The Ventures team manages funds of £300 million with total funds under management for the whole of Octopus Investments is £5 billion. 

They invest across Europe wherever they find the talent and the right opportunity.

The average size of the investments they make is  £2.6 million. 

They back exceptional teams with the ambition to grow big businesses - their focus is on identifying entrepreneurs and fast growth companies that can scale explosively to create, transform or dominate an industry. They invest across a range of sectors including but not limited to software, hardware, financial technology, and consumer innovation.  

The stages they invest at are: Early-stage, typically Series A to Series B. 

2. Google Ventures

Under management: $2 billion. 

In 2014, GV announced a $125 million commitment to invest in European startups.

GV invests across all industries and stages. Globally, they have backed Uber, Nest, Slack, Foundation Medicine, Flatiron Health, and One Medical Group.  

They have over 300 companies in their portfolio.

3. Lakestar

Lakestar II has €350 million under management, and follows on from Lakestar I, which has €135 million under management.

Lakestar's geographical focus will embrace both Europe and the US - there will be partner representation in key cities in both continents.

Lakestar II is designed to be totally flexible, and has only recently launched. However, Lakestar I has invested in UK-based companies, including Algomi.

Lakestar II is a new fund, and is set up to allow a wide range of investments, from less than a million to tens of millions of Euros.

Lakestar II is a new fund, and is not currently invested in any companies, but Lakestar I has around 20 companies in its portfolio.

Rather than focus on a particular segment within the digital industries, Lakestar is looking across a wide range of sectors - however, a Lakestar portfolio company is likely to have the potential to disrupt in major markets, with founders who are passionate about transforming that market. 

Due to the size of the fund, Lakestar can be somewhat "stage-agnostic", but tends to be focused on early stage investment in promising startups, and larger growth-stage investment, along with follow-on investments in later rounds of portfolio companies.

4. Passion Capital

Under management: £86 million total (Fund I, Fund II and Focus FS [investment entity for Mondo]).

Fund I included 8 European company investments (out of 42); Fund II (£45 million has £10 million set aside for European investments; rest/most of the fund is principally for the benefit of the UK economy)

Average seed investment is less than £200,000. 

47 companies to date are in their portfolio.

They particularly like fintech, cyber security/infosec, edtech, health/medtech and any other sector.

The stage they invest at is Seed.

5. Index Ventures 

Under management: $4.5 billion has been raised since the company was founded in 2006. 

They invest across Europe and the US. Roughly one half of our their portfolio is in Europe. They are active in all of the major European tech hubs - Amsterdam, Barcelona, Berlin, Paris, Stockholm, Helsinki, Copenhagen, London.

They invest from the very early stages in Seed and through all later stages of the company from A, B to growth. They have made 100+ Seed investments in the last five years. They make about 25 new venture and growth investments per year, and are very active across the board, investing in multiple stages, geographies and themes.

150 companies in 39 cities with 25000 employees, are in their portfolio.

They look for fearless entrepreneurs, who see building a transformational business as their destiny; teams who see opportunity where others just see obstacles. They love companies that challenge convention and break the rules …just a bit, and above all, they like building lifelong relationships with the entrepreneurs they back, which are based on trust, respect and a shared vision.

Index is a multi stage investor, investing from earliest Seed through to explosive Growth.

6. Balderton Capital 

Under management: $2.3 billion.

They focus entirely on backing European companies and European founders with a global vision.

Average cheque-size is $5 million - $8 million but they have made exceptions that are both a lot smaller and a lot larger than that before.

80 in the current portfolio - many others have already exited.

They are sector-agnostic but founder-specific, and believe that incredible companies are built by incredible people, so that’s where they start.

What stage do you invest at?

Funding stages are traditionally labeled as ’Series A’.

7. Angel CoFund

Under management: £100 million.

The Angel CoFund is solely focussed on UK companies or companies with a UK head office. It works with partners across the business angel community, as well institutional and other investors in the UK, to back high-growth British businesses.

Average size of the investments: they look to make initial equity investments of between £100,000 and £1m alongside angel investors and other co-investors, and have the capacity to commit more companies build and grow. In aggregate they set aside at least £1 for every £1 they invest in order to provide follow-on investment in later funding rounds.

They have backed 59 companies to date.

Types of companies they are looking for: The fund is generalist by design, and naturally the portfolio splits roughly 1/3 life-sciences, 1/3 digital media and software and 1/3 everything else (cleantech, semiconductors, food & drink etc.). Life-sciences are thriving at the moment, driven by some strong macro trends around healthcare, and the UK is able to benefit from some of the best universities in the world, which are leading globally in med-tech development. Their ideal investment is any high-potential fast-growth UK business, which has a strong team and a clear and credible plan to succeed.

The stage they invest at usually is post seed level in small series A or pre-series A rounds, anything between £250,000 to £5 million round sizes where they are partnering with angel investors. 

8. Accel Partners 

Accel London has $2 billion under management. 

The Accel London team is currently investing in early and growth-stage technology companies in Europe and Israel from their Accel London IV fund, which is a $475 million fund. 

The average investment size is anywhere between $500,000 and $50 million.

Accel is on its fourth fund in London, and each fund to date has had 35-40 investments. 

Types of companies on their radar at the moment: Startups run by exceptional people in large markets they can dominate, with a particular focus on hyper-scalable models, including marketplaces, next-gen financial services, lightweight SaaS, as well as the enabling platform technologies for these businesses, such as mapping, search or analytics.

Accel has backed a number of iconic global platforms, which are powering new experiences for mobile consumers and the modern enterprise, including Atlassian, BlaBlaCar, Dropbox, Etsy, Facebook, Flipkart, Funding Circle, Kayak, QlikTech, Simplivity, Slack, Spotify, Supercell, World Remit and others.

Accel invests at any stage. 

9. MMC Ventures

Under management:  £135 million.

Average size of the investments is £2-3 million at Series A but they follow their money and are typically good for £5-6 million per company over a series of rounds. 

Companies in theyr portfolio: 32.

They invest in businesses that use software, the internet and data to shake up large markets, transform supply chains, create new customer experiences or reduce the cost to sell or serve. They look at both B2B and B2C, and experience high quality deal flow in both areas. For example, recently they’ve backed interesting businesses in both B2B and B2C - Sky-Futures is a drone technology company which services the oil and gas industry, while Bloom & Wild is a 'through the letterbox' florist delivery business. Ultimately they are looking for businesses that are designed from the start to grow fast, and can demonstrate their ability to do so in a scalable way.

They are early-stage investors so typically they invest at Series A and follow-on to Series B.

10. Smedvig Capital

Under management: $600 million

Targeting 3-4 deals per year at £7.5 million plus some follow on so a total of approximately £30 million. 

Average size of the investments: £7.5 million. 

Companies in theyr portfolio: 11

Types of companies on their radar at the moment: UK based technology businesses with at least £1 million of run rate revenue growing quickly and needing £2 million to £15 million of capital to grow quicker.

Stages they invest at: Series A and Series B.

 

Source: http://www.techworld.com/news/startups/venture-capital-funds-uk-tech-startup-should-be-aware-of-3624927/

29/01/2016

FM

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