Seedcamp raises $320M for its new fund to expand its US footprint

After nearly two decades of focusing primarily on European markets, Seedcamp has announced a significant shift in strategy with the successful raising of $320 million for its latest fund. This marks the firm’s most substantial fundraising effort to date, nearly doubling the $180 million amassed for its previous fund in 2023. The newly launched Fund VII will allocate $220 million towards early-stage investments, while an additional $100 million will be dedicated to growth-stage follow-on investments through a freshly established fund named Select. Seedcamp, which already operates offices in New York City and Miami, has plans to expand its U.S. team to better connect its European portfolio companies with American customers and investors, particularly at a time when San Francisco and Silicon Valley are reasserting their dominance in the tech landscape. Reshma Sohoni, co-founder and managing partner of Seedcamp, emphasized the importance of linking founders with key resources. "We need to plug founders to nodes that are connective," she stated in an interview with TechCrunch. The firm remains committed to its core philosophy of being among the first to invest in emerging startups, regardless of their stage, whether they are pre-product, pre-revenue, or even pre-traction. Seedcamp plans to leverage its vast network of portfolio startups and limited partners to identify promising investment opportunities. The firm has a proven track record, having been an early investor in several successful tech companies such as Fluidstack, Hopin, Pleo, Revolut, Synthesia, UiPath, and Wise. Currently, Seedcamp boasts a portfolio of over 550 companies, including 12 unicorns, and manages assets totaling around $1 billion. With Fund VII, Seedcamp aims to make initial investments of approximately $1 million in about 100 to 120 startups while also participating in later funding rounds. The growth fund is expected to contribute between $3 million and $5 million per investment in Series B rounds and beyond. Limited partners in this latest fund include the British Business Bank, HarborVest, Schroders, and Sofina, along with contributions from 80 founders of its portfolio companies who are participating as angel investors. Sohoni also noted that while Seedcamp will pursue investments across various sectors, the firm intends to avoid capital-intensive businesses such as 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," she concluded.