The investment vehicle, called Accel London IV, will focus on backing companies operating in the IT, software, internet and consumers sectors. A 75% portion of the total amount will be invested in startups and the remaining 25% for later-stage businesses.
Undisclosed sources said 80% of the fund will be used to back European and Israeli companies; the other 20% portion will be dedicated to U.S. companies.
Accel London IV is expected to close by March 2013.
Founded in 1983, Accel Partners has invested in over 300 companies, including Rovio (Angry Birds), Braintree, Cloudera, ComScore, Dropbox, Etsy, Facebook, Groupon, Imperva, Lookout, Spotify, Trulia, Walmart.com, and Wonga. The firm has offices in Palo Alto, New York City, Bangalore, London and China (via a partnership with IDG).