Sweden’s Creandum secures €500M for European startups amid market shifts

Swedish venture capital firm Creandum has successfully raised €500M to support European startups through its latest fund, Creandum VII. This fund aims to help startups grow from Seed to Series A stages, despite current economic challenges.

Exciting news! We’ve just closed our 7th fund, raising €500m to find and back Europe’s winners at Seed and Series A 💚

Here’s a little video we made to introduce the new fund… pic.twitter.com/iEMJvQ53MZ

— Creandum (@creandum) June 3, 2024

The economy is currently characterized by reduced capital availability and a decline in investment activity, a significant shift from the high liquidity period of early 2021. However, Creandum has a history of weathering economic slumps, including the 2008-09 financial market instability. Their resilience through these periods has informed their current strategy, which includes a consistent investment pace even during turbulent times.

A focused investment strategy

Europe’s technology sector has seen remarkable growth over the past two decades, maintaining its allure despite economic challenges. Creandum has adopted a disciplined strategy by capping its fund at €500M, ensuring focused and reliable returns for its investors. Jon Biggs, a partner at Top Tier and a Limited Partner at Creandum, has lauded the firm for achieving financial outcomes on par with renowned Silicon Valley venture capital firms.

Backing Creandum VII is a diverse group of investors, including university endowments, pension funds, and charitable organizations. Notably, half of the raised capital originates from US investors, reflecting a burgeoning interest in European tech from overseas. This influx of investment is fueling growth in sectors like artificial intelligence and Software-as-a-Service, driving up valuations for technology companies.

Paris is emerging as a center for AI innovation, led by companies like The H Company pioneering Artificial General Intelligence development. Additionally, Europe is witnessing a rise in climate technology adoption, with 22% of venture capital funding in 2023 directed towards climate tech companies, significantly higher than the 7% allocated in the US. Noteworthy startups in the power sector, such as Enode and Monta, are actively contributing to decarbonization efforts.

Commitment to innovative founders

Creandum VII plans to invest in startups with the potential for growth beyond their domestic markets and industries. As economic conditions continue to evolve, Creandum remains committed to backing innovative founders and navigating challenges alongside them.

Creandum’s new fund demonstrates their confidence in the resilience and potential of European startups, even in a shifting market landscape. Their strategic approach and diverse investor base position them well to support the next wave of tech innovation in Europe.