U.K. State Backs Top Tier’s New $314 Million Europe Venture Fund

Britain’s government has helped Top Tier Capital Partners raise nearly 260 million euros ($314 million) for a fund dedicated to venture capital and startups in Europe, where funding for local tech companies is soaring.

San Francisco-based Top Tier invests in some of Silicon Valley’s best known venture firms such as Andreessen Horowitz and has worked with prominent European investors including Accel and Index Ventures. Valuations in Europe are 30% to 50% below those in the U.S., said Top Tier’s managing director and founder David York.

U.K. state-owned British Business Investments committed 100 million euros to the fund, saying it will support British sectors including technology and healthcare. Top Tier’s investors include a mix of pension funds, family offices and endowments.

“We’ve been trafficking around the region for a long time,” said York. “Really at the encouragement of our clients as well as the opportunity in front of us, we decided to launch a stand-alone fund.”

The new vehicle has so far allocated around 40% of the capital it raised. Most of it will be invested with fund managers, with less than a third allocated directly to startups. It brings the total capital raised across Top Tier’s recent family of funds to $1.5 billion, according to a statement.

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