Earlier this month, London-based VC firm Notion Capital announced that it has raised a new $120m fund to target Series A stage companies moving away from traditional software and developing B2B SaaS technology. Murad Ahmed, European Technology Correspondent for the FT, has heralded this as a sign European investors are attempting to replicate the success of Silicon Valley VCs in the sector.
The fund, which hopes to achieve a second close of $150m, focuses predominantly on enterprise software – rather than investing across a range of different digital spaces. Last year we saw that Notion Capital, which has frequently partnered with Eden Ventures, invested in 13 companies – 11 of which were UK-based. The firm’s total UK investment amounted to £80m, and was dispersed chiefly across venture- and growth-stage deals.
So far this year, however, we’ve seen Notion Capital invest in just two companies in the UK equity market: The Currency Cloud, which completed a $18m growth-stage deal in June, and Shopa, which similarly received $11m growth-stage investment in February. This relative inactivity, however, is almost definitely due to the fact Notion Caital was busy raising capital. And, with this new fund nearly ready to launch, we could well see a flurry of investments in H2/15.
Whether this represents Europe ‘catching up’ with the Silicon Valley is unclear. Given the colossal scalability of software ventures, it is no surprise VCs on either side of the Atlantic want in on the action. Obviously Notion’s fund will not be enough to correct the disparity between the amount of money available for investment in the US and Europe, it’s certainly a step in the right direction.
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