FRANKFURT May 16 UK-based business software
venture capital firm Notion Capital has increased funding for
European business software start-ups by bringing in new
investors from the United States and the Middle East, the firm
said on Tuesday.
The venture firm said it has brought in additional
international investors including Cisco Systems, the
U.S. endowments of Emory University and Texas A&M and an unnamed
sovereign wealth fund from the Middle East.
These moves means it now draws fully half its funding from
outside Europe, ensuring the London-based firm has alternative
financing sources to the European Investment Fund (EIF), a
current major backer, after Britain completes its planned
withdrawal from the European Union. (reut.rs/2qLOMFd)
Notion is Europe's largest dedicated financer of
business-to-business, cloud-based software firms, with $300
million of assets under management.
It also closed a new $80 million (61.9 million pounds)
growth equity fund to make follow-on bets on its most successful
ventures, rather than turning to outside investors, often from
the United States, to fund companies in later stages of growth.
The firm said it had expanded and completed its third
venture fund, raising $140 million, a 40 percent increase from
its second fund.
Two of its most successful early investments - marketing
firm NewVoiceMedia, which has raised $141 million to date, and
invoicing platform Tradeshift, with $182 million in funding -
are ready to consider stock market flotations over the next two
years, Managing Partner Stephen Chandler said in an interview.
Other current investments include money transfer firm
Currencycloud, financial contract processor Dealflo, direct
debit bill collector GoCardless, hotel booking site TripTease
and human resources software maker Workable.
Around 40 percent of the companies Notion funds are located
in Britain, with the rest spread across Europe.
The focus on Britain reflects the fact that the country
remains the centre for business software firms, Chandler said.
The venture firm, led by partners who built security firm
MessageLabs and sold it to Symantec for around $700
million, named as new partners Chrys Chrysanthou, formerly of
Cisco, Amazon Web Services and Accel Partners, and Patrick
Norris, a serial entrepreneur and former Morgan Stanley banker.
(1 British pound = $1.2933)
(Reporting by Eric Auchard, editing by Louise Heavens)