Sweden’s EQT Ventures is on the lookout to scale European startups through its recent €1.1 billion fund.
Many companies are struggling to find adequate funding as investors have a reduced appetite for funding startups. However, some are in luck due to the long-term funding of venture capitalists like EQT.
The Swedish investing giant has raised a total of €2.3 billion to increase the valuation of several companies since its launch in 2016. It has backed around 100 firms and helped 18 companies exit, including Handshake, Einride, Netlify, Wolt, and Small Giant Games.
EQT Ventures recently closed its third fund of €1.1 billion, predominantly designated for European startups. “The plan will be to use this latest EQT Venture fund for similar geographical ends”, partner Lars Jörnow said. “The firm wants to use it to make investments of between $1 million and $50 million, with about two-thirds of all investments falling in Europe, and the rest across the UK and the US.”
EQT fills its coffers
Although some venture capitalists give mixed signals about where to spend the funding, EQT Ventures continues to invest in startups aiming to improve society. This includes sectors like transportation, future of work, green tech and freelancer tools.
“Investors think it’s a great idea to back VCs that are investing in early stage with a much longer holding period”, Jörnow added. “If you back the best founders, they will grow startups regardless of the current macro climate.”
Outside of Europe
Moreover, EQT recently funded $1.7 billion to purchase New Jersey-based Billtrust and invest in Knoetic, making it one of the world’s leading dealmakers for companies looking to grow or exit.
Earlier this year, EQT’s sister subsidiary EQT Growth targeted its funding outside Europe through a $2.4 billion fund. This has scaled many startups like Mambu, Epidemic Sound and Vinted.