Atomico Raises $1.24 Billion for New Funds

Atomico, the London-based venture capital firm founded by Skype co-founder Niklas Zennström, has raised a record $1.24 billion for two new investment funds aimed at early- and growth-stage European startups. The funds include $485 million for Atomico Venture VI, which focuses on seed and Series A investments, and $754 million for Atomico Growth VI, targeting Series B to pre-IPO companies. This fundraising comes amidst a challenging environment for venture capital, with Atomico aiming to address the funding gap that European startups face compared to their US counterparts. Zennström highlighted that Europe is leading early-stage funding, and the new funds will equip startups with the necessary resources to scale globally. Despite the positive outlook, the firm acknowledges the difficulties in securing capital in the current market, which has seen a decline in valuations and funding opportunities. Atomico's strategy marks a significant shift towards supporting later-stage companies, reflecting broader trends in the investment landscape.