Seedcamp raises $320M to expand US presence

Seedcamp, an early-stage investor, has raised $320 million for its latest fund, which will see it expand its presence in the United States. The firm has focused on Europe for 18 years. Fund VII is Seedcamp's largest fund to date, double the $180 million it raised for Fund VI in 2023.

However, the firm is splitting the amount to focus more on growth-stage investments: $220 million is allocated to Seedcamp VII for early-stage investments, while $100 million is set aside for growth-stage, follow-on investments via a new fund called Select. Seedcamp already has offices in New York City and Miami, but it plans to grow its US team to connect more of its European portfolio to US customers and investors, particularly in San Francisco and Silicon Valley. "We need to plug founders to nodes that are connective," Reshma Sohoni, Seedcamp's co-founder and managing partner, told TechCrunch.

Sohoni said Seedcamp will continue to invest in upcoming startups, often pre-product, pre-revenue, or pre-traction, using its extensive network of portfolio startups and LPs for dealflow. The firm's thesis has served it well, with investments in successful tech companies like Fluidstack, Hopin, Pleo, Revolut, Synthesia, UiPath, and Wise. Seedcamp has 12 unicorns in its portfolio of over 550 companies and $1 billion in assets under management.

Seedcamp VII aims to invest around $1 million as a first check in 100 to 120 startups, with follow-on investments in later rounds. The growth fund will invest $3 million to $5 million per check, following on in Series B rounds and later. Sohoni said limited partners in Fund VII include British Business Bank, HarborVest, Schroders, and Sofina, as well as 80 of its portfolio company founders who have invested as angel investors.

Seedcamp will continue to invest across sectors, excluding capital-intensive businesses like mobility or marketplaces. "We tend to avoid capital-intensive startups because funding working capital isn't a great model on day one […] We're definitely a commercial-driven investor," said Sohoni. Why this matters: Seedcamp's expansion into the US market marks a significant shift for the European-focused investor.

With $320 million in fresh capital, Seedcamp is poised to tap into the thriving US startup ecosystem, leveraging its extensive network of portfolio companies and limited partners. The firm's thesis of backing early-stage startups, often before they have a product or revenue, has yielded impressive results, with 12 unicorns in its portfolio. As Seedcamp grows its US presence, it will likely face increased competition from established US investors.

Nevertheless, its unique approach and strong track record position it for success. The implications of this expansion will be closely watched by developers, businesses, and consumers, who may benefit from increased investment in innovative startups. However, questions remain about Seedcamp's ability to adapt its model to the US market and navigate the complex regulatory landscape.