Spotify-Backer Northzone Raises $500 Million for New Investments

(Bloomberg) -- Venture capital firm Northzone said it raised $500 million to create its ninth fund for investing in startups across Europe and the U.S., following lucrative early bets on companies such as Spotify Technology SA, iZettle AB and Trustpilot AS.

It’s also the company’s largest investment vehicle to date, Paul Murphy, general partner at London-based Northzone, said in an interview. Despite this, the strategy of focusing on early-stage startups and initial checks of about 5 million euros to 15 million euros ($5.5 million to $16.6 million) wouldn’t change, he added.

“We’ll leave plenty of money for follow-up investments,” Murphy said, adding that tech-driven businesses are of particular appeal but not exclusively. “We’re a generalist fund so there’s no sector we can’t explore,” he said.

Northzone IX is among the biggest VC funds raised in Europe to date, and one of a growing number meeting or exceed the half-billion-dollar mark over the past two years. Accel announced a $575 million fund in May, and Atomico raised $765 million in 2017. Bloomberg News reported earlier this week that EQT Partners AB, the Nordic buyout firm, is set to raise as much as 650 million euros for its latest venture fund as well.

Venture capital investment in Europe has already set a record this year, in the first three quarters of the year hitting $28.1 billion, according to a report from KPMG. Northzone’s recent investments include Tier Mobility, the Berlin-based e-scooter rental startup, and London’s Disperse, which makes computer-vision software for the construction industry.

The firm has 1 billion euros under management according to its website, spread across about 120 individual investments.

To contact the reporter on this story: Nate Lanxon in London at nlanxon@bloomberg.net

To contact the editor responsible for this story: Giles Turner at gturner35@bloomberg.net

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