Swedish venture capital (VC) firm Creandum isn’t letting a changing economic climate slow them down. They just announced the closing of their €500 million Creandum VII fund, focused on investing in early-stage European startups.
This comes amidst a significant shift in the market, with tighter access to capital and lower investment levels compared to the boom of early 2021. But Creandum has a history of weathering economic storms, having been founded after the dotcom bubble burst. They plan to maintain their consistent investment approach despite the current challenges.
Creandum capped the fund at €500 million to ensure focused returns for their investors. Their strong track record, comparable to leading Silicon Valley firms, attracted a mix of global investors, with half the capital coming from the US, highlighting a growing American interest in European tech.
European tech itself is seeing positive signs. Funding and valuations are rising, driven by advancements in artificial intelligence (AI) and Software-as-a-Service (SaaS) sectors. Cities like Paris are becoming AI hubs, with companies like The H Company developing cutting-edge general AI.
Climate tech is another hot area. In 2023, European climate tech companies received 22% of VC funding, compared to just 7% in the US. European startups like Enode and Monta are leading the charge in decarbonizing the power sector, reflecting the continent’s strong focus on sustainability.
Creandum VII aims to capitalize on these trends, backing European founders with the potential to become global leaders. As the economic landscape evolves, Creandum remains committed to fostering innovation and helping European startups navigate the opportunities and challenges ahead.
