Klarna CEO Sebastian Siemiatkowski will speak at a technology and music conference in Stockholm, Sweden.
Johann Jepson | Bloomberg via Getty Images
London — More and more well-known US tech investors are moving to Europe to take advantage of continental start-ups.
It comes after some European tech companies have seen their reputation soar during the coronavirus pandemic. Online event platform Hopin Its valuation soared to $ 7.75 billion Within two years of its founding, Klarna, a company that will buy later Now worth $ 46 billion..
Alex Ferrara, a veteran investor partner at Bessemer Venture Partners who has helped companies like LinkedIn and Pinterest, confirmed to CNBC that he moved New York to London in September.
Also last month, Silicon Valley venture Lightspeed Ventures, which invested in Snap and Epic Games, said Hired Paul Murphy and Ross Mason Lead the company’s expansion into Europe.
London-based Murphy was one of the first investors in London-based Hopin, and Geneva-based Mason Salesforce For $ 6.5 billion in March 2018.
In London, Lightspeed also employs Adrian Radu, a former associate of investment bank Qatalyst Partners, according to LinkedIn. The trio will join London-based Lightspeed partner Rytis Vitkauskas in September 2019.
Elsewhere, General Catalyst, Investors Airbnb According to LinkedIn, Stripe hired London-based Chris Bischoff as managing director in May and Juliet Bailein as principal in June.
According to Pitchbook data released Thursday, the number of European venture capital transactions involving US investors increased from 359 in 2011 to 1,434 in 2021. In 2011, European venture deals involving US investors totaled € 2.7 billion ($ 3.1 billion), while in 2021, the deal was worth € 50.8 billion.
Europe still lacks the following technological giants, Apple Also AmazonThere are tens of billions of dollars and even hundreds of billions of dollars worth of tech companies here, and those who think it’s only a matter of time before Europe establishes a tech company of the same size as the US and Asian giants. There is also.
London-based investor Hussein Kanji told CNBC that Spotify, Klarna, Revolut, Darktrace..
Kanji, a partner at The Ventures, said:
“It’s great for the ecosystem, as 3/4 of the winning companies in Europe are funded by the US anyway,” he added. “It just makes us wonder if European technology is dominated by risk-seeking Americans, much like global investment banks and the city of London are dominated by US companies.”
Probably the most famous venture capital firm in the world, Sequoia Announced relocation to London last year, Veteran partner Matt Miller moves from San Francisco to the British capital.
Sequoia has supported more than 10 companies in Europe since opening its London office. However, Sequoia’s total investment in the continent is significantly higher as it has invested in Europe for over a decade, backed by Bristol-based AI chipmaker Graphcore and Stockholm-based Clarna. ..
“Being physically on the ground … we can move faster … and we can dramatically level up our efforts,” Miller told CNBC last year. “I was coming [to London] It’s a week a month, but that’s all you can see. I felt that being on the ground made a big difference in my ability to find opportunities early. “
Elsewhere, New York hedge fund Coatue Management Confirmed this month Planning to set up an office in Europe.
Coatue Ventures Chairman Dan Rose told CNBC that European offices will open at some point in the near future without specifying where they are.
“We believe Europe has emerged as an important innovation hub in both the public and private markets, as evidenced by increased venture capital activity across the continent,” he said earlier. Facebook And Amazon.
But not all US tech investors are still in a hurry to hire people in Europe. Andreessen Horowitz, for example, has no investors in Europe yet.
“They have made five deals in the UK and Europe for the right amount in the last 12 months. [of capital] But they are not ready yet [to expand in Europe]”A CNBC source said.
Andreessen’s hesitation can be attributed to the fact that there are still many opportunities in the United States. Or maybe it’s because things don’t always go as planned when US investors expand in Europe. The company’s spokesperson wasn’t immediately able to get comments when contacted by CNBC.
Google Ventures (now GV) launched a European-only business in 2015 with five London-based partners. But things didn’t go as planned. European funds abandoned After California headquarters reportedly declined “many” of London’s partners’ investment ideas.
GV is still investing in Europe, but now it uses global funds instead of European-only funds, moving from five to two partners in London.
General Catalyst, Bessemer and Lightspeed expand startup hunt to Europe
Source link General Catalyst, Bessemer and Lightspeed expand startup hunt to Europe