Global venture capital company Accel is launching a new fund for Europe and Israel worth $500 million. Called Accel London V, the fund will “back the next generation of entrepreneurs in the region.”
“Entrepreneurship is flourishing everywhere across Europe and Israel,” Accel partner Harry Nelis said in a statement to the press. “We’ve never seen so many great founders, both gritty and ambitious, come out of the region, and are excited to help them build the next generation of truly great, enduring businesses.”
In Israel, they have put assets into Fiverr, MyHeritage, SimpliVity, Diligent Technologies, and Aorato.
“This reflects our investment focus — we’re looking to invest in great entrepreneurs building the best companies across technology sectors,” Nelis told Geektime. “Our new fund will have a particular focus on marketplaces, SaaS, and next generation infrastructure.”
Accel brags of having $2.5 billion in assets under management across the continent and in Israel. Their biggest European investments include Deliveroo and Funding Circle in the U.K., BlaBlaCar in France, ForgeRock out of Norway and CHECK24 in Germany with successful exits in Finland-based Supercell to SoftBank and Russia-based Avito to Naspers. You can also throw Slack, Facebook, Dropbox, Flipkart, Spotify, Etsy, GoFundMe, and Cloudera into their portfolio as well. The fund will focus on early stage and Series A rounds similar to their London IV fund, which opened in 2014.
The earlier fund was worth a similarly gigantic $475 million. This could indicate Accel is still feeling bullish on technology investments on the east side of the Atlantic compared to the financing slowdown in the U.S.
Nelis described to us the opportunities in Europe and Israel as still effervescent compared to the creeping anxiety over overvaluations in the United States, saying that the more liquid market in Silicon Valley is making the situation more pronounced stateside.
He told us, “Our focus at Accel is on what we can control — being an early investor in great companies. Overall, Europe’s entrepreneurs are working to build sustainable businesses. By being an early investor in fundamentally sound companies, we will be able to make good returns, even if the market retracts.”