It’s typically mentioned that European VC doesn’t have the firepower to compete with VCs within the U.S., which usually increase billion-dollar+ funds today. Maybe additional proof of this view persists within the information that Berlin-based Cherry Ventures has closed its newest fund at $500 million, to be cut up between early-stage rounds and follow-on rounds at Collection B and past.
A press release from Cherry laid out its ambition. It needs to make use of this fund to assist construct the “first trillion greenback firm in Europe.” With this, it known as for the reversal of the “doom and gloom” narrative about Europe’s financial system.
That’s nice, though proof that European startups are at the moment on the trillion-dollar path stays skinny on the bottom. Working example, if AI performs out because the juggernaut everyone seems to be saying that will probably be, only a handful of the most-capitalised firms within the discipline come from this neck of the woods. Latest analysis estimated that some $8 billion was raised by AI firms in Europe, in comparison with some $97 billion raised within the U.S. for AI startups. Sure, it’s not solely about cash, however as Cherry and different VCs know, that capital is a vital a part of the combo.
Cherry didn’t put a timeline on its aspirations.
Within the U.Okay., the largest startup market in Europe, October enterprise capital funding for U.Okay. startups fell by 50% from the earlier quarter, as startups secured solely round $2.9 billion, in line with a Dealroom and HSBC Innovation Banking report.
Cherry Ventures itself didn’t even seem in final yr’s HEC-Dow Jones Enterprise Capital Efficiency Rating, with the highest title being taken by Earlybird Digital East Fund.
In the meantime, Revolut backer Balderton Capital not too long ago managed to lift $1.3bn for European tech start-ups, whereas concurring that Europe is lacking out on the AI increase.
Cherry’s final fund, introduced in early 2022, got here in at €300 million ($312 million). The VC’s portfolio consists of space-tech The Exploration Firm, grocery supply startup Flink, neurosurgical microbots firm Robeaute, Greyhound proprietor Flix SE, and logistics unicorn Forto.
LPs within the new fund embrace entrepreneurs Miki Kusi from Wolt; Ilkka Paananen, chief govt of Supercell; and Jochan Enghert from Flix.
Cherry Ventures’ 18 exits have included CoWSwap, Ninetailed, and Homelike.
