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  • In the news
  • 13 September 2022
  • 3 min read
  • Words: Northzone

We’ve raised €1bn: investing from Seed to Growth in category-defining entrepreneurs

Above, from left to right: Kilian Pender, Wendy Xiao Schadeck, Jeppe Zink, Michiel Kotting, Jessica Schultz, Pär-Jörgen Pärson, Elena Pantazi – Northzone Partners.

 

We’re proud to announce our largest fundraise to date: €1bn to invest in the next generation of changemakers. Between the global climate crisis and social, macroeconomic, and political uncertainty, we believe technological innovation will continue to be the silver lining that delivers real societal growth. Now more than ever, we look to entrepreneurs who are building a mindful, innovative future; and founders have proven many times that they thrive in turbulent times.

At the outset of our tenth fund cycle, we have reached yet another defining moment for our society: tech entrepreneurs today are able to shape behaviour for generations to come, redefining our world, from hybrid work to travel, transportation to healthcare, retail to entertainment, and more. 

We’re grateful to our entrepreneurs and LPs from around the globe for doubling down on this journey with us. Reflecting on the scale of the opportunity ahead, we will continue to be long-term partners to founders, focusing on opportunities across Europe and the US, from Seed through to IPO. We will continue to invest in existing verticals such as fintech, healthtech, SaaS, and consumer. Many of the entrepreneurs we have yet to meet will build their own business category through this fund cycle. 

 

A team of 36, 16 nationalities, no single HQ: a ‘glocal’ approach to investing

 

We have embraced multiple geographies with a joint local and global mindset. Our team of 36 operates across 6 countries and represents 16 nationalities. Many of the most successful companies we’ve invested in — such as Spotify, iZettle, Klarna, Trustpilot, Kahoot!, Tier, Personio, Zopa, Forto, TrueLayer, and Spring Health — can attribute their success to their experience scaling internationally and building global teams.

Founders are expecting more from their capital partners than ever before. We have invested in a fully integrated platform team, with expertise across marketing, talent, finance and legal. We have also built a global network of more than 300 seasoned operators who have successfully scaled teams and who are at-hand to support our founders on every step of their journey. 

Diversity and inclusion continue to be core to Northzone’s foundation. In addition to championing people with diverse backgrounds both at Northzone and in our portfolio, we’re proud to say that we’ve had gender equality in our investment team for several years.

You can find our full team here. There are more of us!

Capital + access to talent: a new world

 

In spite of the headwinds and challenges of today, entrepreneurs have many reasons to be optimistic. Our ecosystem has scaled to become more international, professional and ambitious – all of which give founders more choice in selecting their venture capital partner. We’ve had people on the ground in several cities for many years, including New York, London, Stockholm, Amsterdam and Berlin, and have witnessed these colossal changes in the local ecosystems firsthand. 

Tech innovation will continue to drive some of the biggest changes of the coming generations. We’ve seen it create new jobs and industries, as well as remove barriers to opportunities around the world. Startups today can tap into a bigger pool of talent than ever before and decide whether to build teams locally or entirely remotely. 

From Seed to full-stack: partners for the full journey 

 

Our investment strategy has always prioritised finding and backing the most ambitious entrepreneurs at the right stage. From Seed to Growth, we are excited to be able to offer more to our founders across multiple stages of their company building journey. That’s why with this fund, we decided to earmark a significant part of our capital for growth stage investments so that we can offer our entrepreneurs a “full-stack” partner, from Seed to pre-IPO. 

Tech innovation used to be a vague promise of positive but uncertain progress. Today, the pace of innovation is rapid, changing our behaviours faster and more profoundly than ever before. We’re excited and prepared for this paradigm shift  — join us!