Image credits: EQT
Stockholm-based EQT, a VC firm, announced on Monday that it has closed EQT Growth (The Fund) at €2.4B, raising above its target of €2B.
The Fund is backed by a diverse global group of investors, including pension funds, sovereign wealth funds, asset managers, and high-net-worth individuals from Europe, Asia, North America, and the Middle East.
Marc Brown, Partner and Head of EQT Growth’s Advisory Team, says, “The speed at which the European and Israeli tech ecosystem has developed over the past decade is a testament to the number of innovative, young companies that call the region home. However, a lack of growth-stage capital and European investors with scale-up expertise has meant that many of these firms have gone elsewhere when embarking on the next step of their journey. With this fund, EQT Growth has the experience, expertise, and capital to change this. We’re excited to actively partner with a select group of Europe and Israel’s tech champions to help drive them to the world stage.”
Atomico’s State of European Tech Report, 2021, reveals that investment in European technology companies has grown from around $20B in 2017 to over $100B in 2021.
However, European-based investors only made up 30 percent of investors in growth-stage rounds in 2021, reports EQT Motherbrain, an AI-driven investment platform designed to improve every decision in the investment process.
Having invested in technology for nearly three decades, EQT sees a large opportunity for a growth investor with European roots, local expertise, and capabilities to help elevate the region’s tech innovators to the world stage.
As a result, EQT Growth was launched to support fast-growing technology companies, especially in Europe and Israel.
Fund utilisation
EQT intends to invest around €50M to €200M, backing strong management teams of companies within four tech sub-sectors: enterprise, con/prosumer, health, and climate.
The VC firm has made seven investments already. They include Swedish music company Epidemic Sound, German SaaS company Mambu, and Lithuanian secondhand fashion marketplace Vinted.
Per Franzén, Head of Private Capital and Deputy Managing Partner at EQT, says, “Closing the largest ever first-time growth equity fund raised in Europe clearly illustrates the demand for EQT’s active ownership approach and thematic investment strategies. In addition, in a strong vote of confidence for our multi-strategy approach, the fund received support from a significant portion of investors in existing EQT funds. We are honoured by their ongoing support and look forward to continuing to earn their trust.”
EQT: What you need to know
EQT says it is a purpose-driven investment organisation with €77B in assets under management across 36 active funds as of June 30, 2022.
The VC has portfolio companies in Europe, Asia-Pacific, and the Americas with total sales of approximately €29B and more than 280,000 employees.
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