New $650 million fund for early-stage European and Israeli startups.
- Accel, a venture capital firm, announced a new $650 million fund for early-stage European and Israeli startups.
- This fund, named Accel London VII, is part of a larger $3.05 billion fundraising effort that includes two other funds: Accel XV, a $650 million fund for early-stage investments in the U.S., and Accel Growth Fund VI, a $1.75 billion fund for later-stage growth investments.
- The fund aims to support founders creating globally influential companies in Europe and Israel.
- Harry Nelis highlighted the dramatic evolution of Europe's tech ecosystem, noting over 360 unicorns now exist across Europe and Israel, up from about $1 billion in capital raised in 2000 to $66 billion in 2023.
- Nelis credits a talent 'flywheel' from unicorn employees founding new startups, with 1,451 new tech startups emerging.
- He identified untapped potential in countries like Lithuania and Romania, citing significant technology successes like Vinted and UiPath.
- Accel plans to invest in 25-30 companies with this fund amidst a broader slowdown in tech funding due to macroeconomic factors and high interest rates.
- Despite challenges, the fund was rapidly raised, suggesting a potential easing in the tech investment climate.
- The fund's focus includes not just AI but a broad range of tech sectors, leveraging Europe's strong AI capabilities in application development over foundational models.
Via CNBC
