The venture capital firm behind some of Europe’s biggest FinTech success stories has just doubled down on its commitment to give promising entrepreneurs a leg up.
Balderton, which has backed companies like GoCardless, challenger bank Revolut and cybersecurity unicorn Darktrace in the past, has just announced its seventh investment fund.
The new fund consists of $400m that the company is looking to invest in promising startups across the continent. It will be focused on Series A capital injections.
Suranga Chandratillake, partner at Balderton, said the Series A stage is the ideal time for an investor to step in as it provides the perfect opportunity to have an impact on the future course of the venture.
“It is not a matter, as Series B, C and D can be, of doing more of the same, only with more people and more money,” he explained. “It is instead a moment in time when a team has to grapple with rapid and fundamental change. It is a time when all assumptions must be re-visited and when things that made you successful before can actively hinder you in the future. It is a difficult time but it is also an exciting one.”
Although, Chandratillake did admit that Balderton also opt to invest in Series A rounds as doing so can yield massive returns. On balance, he also argued that investors going in at that stage cannot rest on their laurels, but have to be active in its support.
“Series A investors cannot ‘spreadsheet invest’ from afar at that moment; you have to be nearby, you have to roll up your sleeves, you have to be available at any time of the day or week, you have to connect a company and its team to a community of others who have already trodden the path,” Chandratillake said.
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