Venture capital firm announces close of new £260 million fund to boost high growth and tech-enabled start-ups in the UK and Ireland
The Scottish venture capital firm behind some of the UK’s most exciting high growth technology companies has raised £260 million for a new fund which is believed to be the largest of its kind in Europe this year.
Scottish Equity Partners (SEP) has raised the record sum for SEP V, a new tech fund, which will be used to invest in high growth tech and tech-enabled firms based mainly in the UK and Ireland, as well as other European countries.
SEP V, which was over-subscribed and closed above target, is one of the largest venture capital funds to be raised in Europe this year.
Investors in previous SEP funds account for nearly 90% of commitments to the new fund, which the firm says endorse its strong investment track record and reputation.
UK investors account for approximately 40% of the fund, with the remaining 60% contributed by investors based in Europe and the United States.
SEP V will be used to make investments of up to £20 million in growth-stage tech companies led by ambitious management teams and play an active and supportive role in their development, following a strategy consistent with previous SEP funds.
Managing partner Calum Paterson said: “This is another great milestone for us and reflects extremely well on the calibre of our team. The new fund gives us a very strong platform to continue to invest in companies with world class potential and we thank all of our investors for their support.”
Current SEP portfolio companies employ more than 5,500 people and have aggregate revenues of more than £1 billion. They include Edinburgh-based travel search company Skyscanner, London-headquartered high-end fashion business Matchesfashion, and online car finance specialist Zuto, which is also based in Manchester.
Non-UK companies in the portfolio include online eyewear company Mr Spex and language learning company Babbel, which are both based in Berlin, and Dublin-based e-commerce analytics company Clavis Insight.
Total funds under management by SEP now exceed £1 billion. The firm has 45 partners and employees across its Edinburgh, Glasgow and London offices.