VC Northzone Secures $1B in Funding to Seed European Tech Startups

Venture capital firm Northzone announced Tuesday (Sept. 13) that has raised €1 billion ($1 billion) in its largest fundraise to date, marking its 10th funding round since its founding in 1996.

The funding will be used to back the next generation of changemakers, with the company noting in a blog post that “tech entrepreneurs today are able to shape behavior for generations to come, redefining our world, from hybrid work to travel, transportation to healthcare, retail to entertainment, and more.”

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Northzone has funded some of Europe’s biggest tech players, including Spotify, Klarna, Trustpilot, Personio, Wagestream and Microverse, among others.

“The tech, the talent and the growth trajectories are an order of magnitude greater than a decade ago,” said Northzone Partner Jessica Schultz. “Raising €1 billion recognizes the enormous ambition of European founders and the capital they need to create world-beating businesses.”

Founded by Bjorn Stray, Gregers Kronborg and Tellef Thorleifsson, Northzone is headquartered in London, although its team operates across six countries.

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Michiel Kotting, a partner at the firm, said: “Successful entrepreneurs come from many walks of life. Our team here at Northzone reflects that, with a group that dares to think differently because of its diversity of thought and backgrounds.

“This has long been a driving force for our success and we look forward to adding the very best talent to our team and portfolio as we grow.”

Northzone said that as it considers the opportunities ahead, the team will continue to be long-term partners to founders and target opportunities across Europe and the U.S., from seed through to initial public offerings (IPOs).

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The company said that it will continue investing in verticals like FinTech, HealthTech and Software-as-a-Service (SaaS), noting that “many of the entrepreneurs we have yet to meet will build their own business category through this fund cycle.”