Spotify backer Northzone secures $500m
Early Spotify investor Northzone has today announced its ninth fund at $500m (£387.5m), which it said was raised at “record speed”.
The oversubscribed pot attracted both new and existing investors, as a result of increasing interest in European early-stage startups. It takes the total amount raised by the Swedish venture capital giant to €1.5bn (£1.3bn).
Northzone said the fund will hone in on both consumer and business-focused companies across Europe and the US eastern coast, targeting those at series A and B stages of growth.
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Founded in 1996, it has made its name through a number of notable investments in companies such as iZettle, Trustpilot and Klarna.
Highlighted sectors for the new fund include fintech, health, education, mobility and construction.
Dubbed Northzone IX, some of the fund has already been distributed through rounds for London’s Generation Z marketing platform Pollen, construction startup Spacemaker in Oslo, and Livepeer in New York City.
“The startup ecosystems beyond Silicon Valley have seen a step change in recent years in quality, scale and an abundance of experienced founder and operator talent, along with deeper pockets of capital,” said Northzone partner Paul Murphy.
“There has never been a better time for tech entrepreneurs in Europe.”
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Following the launch of Northzone IX, the firm said it had promoted Hello Fresh co-founder Jessica Schultz and Dots co-founder Murphy to the role of general partner. It has also promoted Wendy Xiao Schadeck and Chris Steinau as principals.
Schultz said: “This latest fund puts us in a strong position, together with our collective experience as investors, founders and operators, to back early-stage founders with the greatest potential.”
Image credit: Northzone