Stockholm-headquartered VC firm Creandum has announced the successful closing of its latest fund, Creandum VII, securing €500 million to support European startups at the Seed and Series A stages. This new fund arrives at a time of significant economic shift, marked by a tighter capital market and lower investment levels compared to the high liquidity period of early 2021.
Founded in the wake of the dotcom bubble, Creandum has a history of navigating economic downturns, including the 2008-09 financial crisis. This experience has informed the firm’s approach, maintaining a consistent investment cadence even during turbulent times. The European tech market, which has seen substantial evolution over the past two decades, continues to present promising opportunities despite current challenges.
Creandum’s disciplined strategy led them to cap the new fund at €500 million, aiming to maintain focused and consistent returns for their investors. Jon Biggs, a partner at Top Tier, one of Creandum’s Limited Partners, highlighted Creandum’s strong performance, noting their ability to achieve returns comparable to leading Silicon Valley venture capital firms.
The investor base for Creandum VII includes a mix of university endowments, pension funds, and charitable foundations. Notably, half of the capital raised comes from US investors, indicating a growing interest in European tech from across the Atlantic.
Recent trends in European tech have been encouraging, with an uptick in funding and valuations driven by advancements in AI and SaaS. Cities like Paris are becoming hubs for AI innovation, exemplified by companies like the H Company, which focuses on developing Artificial General Intelligence.
Climate tech is also gaining traction in Europe. In 2023, 22% of venture capital funding in Europe was directed towards climate tech companies, compared to just 7% in the US. European startups such as Enode and Monta are leading efforts to decarbonize the power sector, reflecting the continent’s strong commitment to addressing climate change.
Creandum’s new fund aims to capitalize on these trends, supporting startups that have the potential to become global leaders in their respective fields. As the economic landscape continues to evolve, Creandum remains committed to backing innovative founders and helping them navigate the challenges and opportunities ahead.
Click here to read more VC news.
