Notion Capital Raises $130M Fund for Europe’s Follow-On Gap
Summary of the Article: Notion Capital’s New Growth Fund & Strategy
This article details Notion Capital’s launch of its Growth opps III fund and a shift in strategy to capitalize on opportunities in the European growth capital market. Here’s a breakdown of the key takeaways:
* Filling a Gap: US VCs are increasingly focusing on thier domestic market, creating an possibility for European firms like Notion Capital to become “European champions” in growth-stage investing.
* Investment Focus: Notion will focus on the application layer of AI, building on its existing strengths in SaaS, cloud, and fintech. Thay won’t invest in the underlying infrastructure like large language models. They are also interested in companies benefiting from the demand for greater sovereignty, specifically in defense and supply chain logistics.
* Recent Investments: The fund has already begun investing,with deals including:
* Upvest: A stock trading API.
* Kraken: A spinoff from Octopus Energy (energy technology).
* Nelly: A startup digitalizing medical practices.
* dedicated Growth Team: To ensure objectivity, follow-on investments and new sourcing will be handled by dedicated growth fund partners, separate from those managing the early-stage portfolio.
* New Hires: Notion capital has brought on Jessica Bartos (formerly of Salesforce Ventures) as an external partner to lead the growth strategy, alongside existing partner Stephanie Opdam. This marks the firm’s first external partner hire.
* Fundraising Outlook: The firm anticipates future growth funds will be easier to raise due to changing incentives for pension fund investment in European venture capital (specifically mentioning initiatives in France – Tibi – and the U.K.).
In essence, Notion Capital is positioning itself to be a leading European growth-stage investor, notably in AI-driven applications and sectors related to national sovereignty, while leveraging a dedicated team and favorable shifts in the investment landscape.