London, UK-based venture capital firm Balderton Capital raised $145m for a new fund.
Backers in Balderton Liquidity I included existing and new limited partners across Europe, the US and Asia.
Led by Daniel Waterhouse, partner, the fund will buy equity stakes from early shareholders in European tech startups. Investments will be considered in sectors similar to that of Balderton’s existing early-stage venture fund, which primarily backs software and internet-powered companies in both the consumer and enterprise space, where the company was founded in Europe.
The new fund will typically invest in European founded growth stage companies where early shareholders wish to obtain pre-exit liquidity. Balderton will take minority stakes, between regular fund-raising rounds, making it possible for early shareholders – including angels, seed funds, current and former founders and employees – to realize early returns, reinvest capital in the ecosystem, or reward founders and early employees.
Today, there are over 500 companies in Europe which have raised more than $20m over the last decade. Balderton conservatively estimates the total value of early shareholder stakes in these companies is at least $4bn, in both the consumer and enterprise sectors, with potentially hundreds of early shareholders wishing to free up capital to realise returns, reinvest, reward employees and founders, or launch new technology startups.
With this new fund, the firm is expanding aims to take advantage of new investment opportunities arising in the maturing European tech ecosystem.
Waterhouse will lead the new fund, with support from investment principal Laura Connell, who recently joined Balderton, and the rest of the Balderton team.