Seedcamp raises $320 million for its new fund to expand its presence in the US

After 18 years of focusing on Europe, early investor Seedkamp said on Monday it had raised $320 million for its latest fund, which will see it expand its presence in the United States.

Fund VII is the investment firm’s largest to date, double the $180 million it raised for Fund VI in 2023. However, Seedcamp is divvying up that amount to focus more on growth-stage investments: $220 million is allocated to Seedcamp VII, its vehicle for early-stage investments, while the remaining $100 million is allocated to growth-stage and follow-on investments via a new fund called Select.

Seedcamp already has offices in New York City and Miami, but the company is now looking to grow its US team in an effort to connect more of its European portfolio with US clients and investors, especially as San Francisco and Silicon Valley have regained their status as centers of gravity in recent years.

“We need to connect founders to interconnected nodes,” Reshma Sohoni, co-founder and managing partner of Seedcamp, told TechCrunch.

Sohoni said the company will continue with its thesis of being one of the first investors in upcoming startups, whether they are at a pre-product, pre-revenue, or even pre-traction stage. The company leverages its extensive network of portfolio startups and limited companies for deal flow.

This thesis has served Seedkamp well. The company has been an early investor in several successful technology companies, including Fluidstack, Hopin, Pleo, Revolut, Synthesia, UiPath, and Wise. It has 12 unicorns in its portfolio of more than 550 companies and $1 billion in assets under management.

Seedcamp VII is looking to invest approximately $1 million as a seed screening for about 100 to 120 startups, and follow up in later rounds, according to Sohoni. The growth fund will invest approximately $3 million to $5 million per check, post Series B rounds and beyond.

Sohoni said limited partners in the seventh fund include the British Business Bank, HarbourVest, Schroders and Sofina, as well as 80 founders of his portfolio companies who participated as angel investors.

Sohoni said Seedcamp will continue to invest in various sectors, although she noted that the company will continue to move away from capital-intensive businesses, such as mobility or marketplaces.

“We tend to avoid capital-intensive startups because working capital financing is not a great model on day one… We are definitely commercially motivated investors,” Sohoni said.