Angry birds funder shuts fund for Eurotech

Investment outfit Atomico has closed Europe’s largest standalone tech venture fund claiming the situation in the EU has changed and its services are not needed as much.

For the last ten years the fund has provided $765 million to help tech companies start outside the US.  The London-based venture firm was started by Skype co-founder Niklas Zennstrom.

It has invested in around 60 firms since it was established in 2006 and backed Supercell and Angry Birds maker Rovio Entertainment.

Most European start-ups to be acquired rather than holding out for stock market flotations of their own in order to build powerful global tech franchises.

Mattias Ljungman, an Atomico partner, said that thinks were changing in the region both in the maturity of entrepreneurs and business models. The outfit will still invest in Europe but will be interested in other regions now.

Some of Atomico’s recent investments included Scandit, a Zurich-based barcode-scanning software supplier, and Lilium Aviation, based near Munich, which is developing an electric jet with vertical takeoff capacity that could be used as a flying car.

 

Atomico is the latest in a succession of European-centered venture firms raising record amounts of venture capital. The trend reflects the growing size of individual funding rounds for the hottest start-up firms and the entry of new sources of capital from outside the world of start-up financing to compete for those deals.

But others are now providing funds too. Global VC firm Accel Partners last year raised a new $500 million European fund, while Index announced two joint U.S. and European funds – a $550 million fund for early-stage seed investments and a $700 million fund for later stage companies.

Previously, Balderton Capital raised $305 million in its latest European fund in 2014, while Lakestar raised a 350 million euro ($371 million) fund in 2015.

Rocket Internet last year announced a $1 billion Rocket Internet Co-Investment Fund in conjunction with a range of outside funders that is largely designed to take bigger stakes in its previous investments.