Atomico, Skype founder’s VC firm, raises $1.24 billion to back European tech startups

Atomico, an early backer of leading European tech startups like Stripe and Klarna, has launched two new funds worth $1.24 billion to support emerging and growth-stage startups in the sector.

The launch of Atomico’s sixth fund cycle includes a $754 million growth-stage fund targeting Series B to pre-IPO companies and a $485 million early-stage fund. This move comes as a boost to a European tech scene grappling with declining valuations and widespread layoffs.

In a statement on Monday, Atomico said the $754 million Atomico Growth VI fund will support entrepreneurs from Series B through to pre-IPO stages. Alongside it, Atomico Venture VI will continue to engage with early-stage founders, focusing primarily on Series A, with some opportunities at the Seed stage.

“European technology is reaching maturity. To seize this opportunity, founders need ambitious, dedicated investors who can see beyond market fluctuations. Europe is excelling at the early stage with a surge of new startups. Our new funds will provide the necessary support to scale these companies globally from Europe,” said Atomico founder and CEO Niklas Zennström.

In 2023, venture funding for European tech startups dropped to $45 billion, down from $82 billion the previous year, reversing the surge in tech valuations seen before the pandemic.

In 2023, the total value of all private and publicly listed tech companies in Europe exceeded $3 trillion. However, Europe’s tech sector experienced a $400 billion reduction in market capitalization in 2022 due to falling valuations.

Atomico’s new funds represent a more than 50% increase over the $820 million raised in its previous round, Fund V, in 2020.

Founded in 2006 by Niklas Zennström, co-founder of Skype, Atomico has been a key player in supporting Europe’s tech ecosystem. The firm has evolved from Series A investments to include growth funding since 2011.

Zennström emphasized, “European technology is reaching new heights. To capitalize on this, founders need investors with the right experience to navigate market cycles. Our new funds will help early-stage startups scale globally from Europe.”

The announcement comes as Atomico’s prominent portfolio companies, Stripe and Klarna, are rumored to be considering stock market listings. Stripe, valued at $70 billion in its last secondary share sale, is seen as a potential IPO candidate, while Klarna is exploring a secondary share sale to provide liquidity ahead of a highly anticipated IPO. This year has seen fewer major tech listings in Europe, but there is optimism for a revival in 2025.