London-based VC firm Octopus Ventures has launched a $140m fund for late-stage investments in tech firms across Europe.
Octopus has typically been limited to early-stage rounds but will now be able to invest from £250,000 up to £25m.
The company made its first investment from the fund back in July when it joined Google Ventures in backing luxury holiday site Secret Escapes with a $60m Series C round.
The VC firm has already backed some of the UK’s most recognisable startup brands with early-stage funding, including events app YPlan, subscription food service Graze, mobile keyboard innovators Swiftkey and property portal Zoopla.
Octopus will use the fund to support its own portfolio, as well as backing new scaleup companies.
“As more and more talented European entrepreneurs build successful international businesses, so the need for early and growth stage funding has grown,” head of Octopus Ventures Alex Macpherson told Tech City News.
“With the launch of our opportunities fund, we are one of the very few European venture funds able to invest from the earliest stages of company growth through to maturity, investing from £250,000 to £25m. With this funding capability, Octopus can help entrepreneurs build the global businesses of tomorrow.”
Macpherson says the growth in European unicorns was one of the key reasons to raise a fund specifically for later stage investments.
“Recent years have seen significant changes in both the London and wider European technology markets; the rise of $1bn business valuations across Europe has been particularly well documented.
“As the European ecosystem continues to develop and mature, this $140m fund allows Octopus to continue backing talented entrepreneurs from an early stage, but then to provide crucial on-going support, remaining an investment partner as they go on to build big, enduring businesses.”