Atempo Growth, a London-based debt fund, reacts to the rising demand for debt capital in the European technology sector.
Atempo Growth, which was established in 2021, has reported the first closure of its inaugural fund, with pledges totaling over $200 million. The fund, supported by Banco Santander and the European Investment Bank, will pursue projects across Europe.
It will give organizations with adaptable growth capital a minimum equity dilution, which may be utilized to supplement equity funding, allowing working expansion, mergers, and perhaps other use cases.
What the firm’s founders have to say
The founders of the business, Matteo Avramov Giulivi, Luca Colciago, and Jack Diamond, have prior expertise in the European debt market. They have collectively invested in over 100 startups in various industries, like money transfer service Currencycloud and Prague transactions startup Twisto.
According to Colciago:
“Over the last decade, the European tech ecosystem has gone from strength to strength, and growth debt has played an important role… Tech companies are increasingly adopting this source of funding to complement equity. Our pan-European team is well-positioned to support high-growth companies, with over 30 years combined experience in the space.”
Venture loan activities in Europe
As per Atomico’s State of European Tech 2020 study, venture loan activities in Europe have risen six to eight times in recent years. As a result, according to the research, debt can become an appealing funding source for venture-backed firms searching for solutions to equity funding. However, it still accounts for a small portion of the European finance market.
Atempo Growth aims to declare the subsequent closure in the second half of this year – a move that will help expand its reach across Europe. Moreover, it is also currently recruiting to support its growth.
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