Skype’s co-founder VC firm Atomico joins a $ 1.2 billion fund


The partners of the European venture capital company Atomico.


LONDON – Atomico, the London-based venture capital firm founded and led by Skype co-founder Niklas Zennstrom, is about to announce a new start-up fund worth around, according to industry sources familiar with the matter $ 1.2 billion.

The investment company has nearly raised an “early stage fund” of around $ 400 million to support young startups, two venture capitalists who refused to be named due to the sensitive nature of the discussions, CNBC said.

They added that Atomico is also working on a “late-stage” fund of around $ 800 million to support more established startups that need larger amounts of capital to continue growing.

Atomico did not respond to a CNBC request for comment.

A third CNBC source, a startup executive who also refused to be named due to the nature of the discussions, told CNBC that Atomico had informed its company that it was in the process of raising more capital from limited partners.

Several other VC sources, unaware of any specific donation plans, said they wouldn’t be surprised if Atomico announced a new fund soon. “I think pretty much the world and his dog are pulling up right now,” said one.

Another added: “(It) wouldn’t be a surprise. The competition is brutal in the VC world.”

It is unclear how much more capital Atomico will need to raise for each of the funds and when the funds will be officially announced.

Atomico, based in Mayfair, has raised five funds to date. The last was a $ 820 million fund announced in February 2020.

It has used its previous funds to support some of the world’s most valuable startups, including fintech titans Stripe and Klarna. Other investments include the flying car start-up Lilium and the chip designer for artificial intelligence Graphcore.

The amount of money flowing into European startups has continued to grow over the past decade, and many large US VC firms like Sequoia Capital and Bessemer Venture Partners have set up offices in London to ensure they don’t miss out on business.

Several Atomico competitors also announced significant funding last year, and new VC firms are also being formed.

On Wednesday, competitor Balderton Capital, also based in London, announced on Wednesday $ 600 million in early-stage funding, while Sofinnova Partners announced it had raised € 150 million ($ 169 million) in capital for its early-stage environmental fund has applied.