London-based venture capital firm Passion Capital has announced the close of its fourth Seed fund, Passion IV, raising €46 million alongside two special purpose vehicles (SPVs) to support the next generation of early-stage startups.
The fund reinforces the firm’s long-standing strategy: back founders early, particularly in AI, FinTech, and enterprise risk infrastructure across the UK and Europe.
Backing Founders “From Day Zero”
Passion Capital has built its reputation on writing first cheques—often at the earliest stages of a company’s journey. With Passion IV, the firm continues this approach, already investing in 13 startups.
According to Partner Greg Bennett, the focus remains firmly on people:
“We always back people first and their ability to execute, and AI is now helping them build more efficiently.”
Notably, the fund is fully backed by private capital, signaling continued confidence from LPs despite broader market uncertainty.
Riding the AI + FinTech Wave
The new fund arrives at a time of sustained early-stage activity across Europe, particularly in:
- AI-driven infrastructure
- Agentic systems
- Next-gen payments and financial services
Recent examples reflecting this trend include:
- London-based startups building AI-powered payment agents and security layers
- New European funds targeting early-stage AI and software ventures
Passion Capital’s latest raise aligns closely with this broader momentum, positioning it to capture opportunities at the intersection of automation, finance, and intelligent systems.
A Track Record in FinTech Winners
Founded in 2011, Passion Capital has backed 100+ companies, with a particularly strong footprint in FinTech.
Notable portfolio companies include:
- Monzo
- GoCardless
- Tide
- Marshmallow
- Lendable
- PolyAI
The firm reports:
- 23% net IRR
- 2.5x DPI
- 5 FinTech unicorns
Recent portfolio activity also highlights continued performance, with exits and liquidity events from companies like Ravelin, Tillo, and Xelix, alongside growth rounds across Attio, PolyAI, Lassie, and Marshmallow.
Expanding Early-Stage Firepower in Europe
In total, Passion Capital has distributed €72 million to LPs—exceeding the size of any of its previous funds. This signals both strong portfolio outcomes and the ability to recycle capital into new opportunities.
With Passion IV, the firm is doubling down on its belief that:
- AI is reshaping how startups are built
- Early-stage capital remains critical
- Europe continues to produce globally competitive founders
What This Means
The closing of Passion IV is another indicator that early-stage investment in Europe is not slowing down—it’s evolving.
As AI lowers the cost of building and scaling products, Seed investors like Passion Capital are positioning themselves at the front of this shift—backing founders earlier, faster, and with sharper thematic focus.
For ambitious founders across AI and FinTech, the message is clear:
capital is still available—but conviction, execution, and timing matter more than ever.
