The lack of capital growth in Europe is such a persistent issue that some early stage companies have taken the matter in their hands. London-Headquartered Firm Capital is one of them.
In 2017, Capital Capital was one of the first in Europe to close an opportunities fund for the provision of capital portfolio. Now, it has closed a $ 130 million development fund, almost twice the size of the previous one, which will also invest outside its portfolio, TechCrunch has learned exclusively.
The US VCs they used to cover the growth chasm today tend to focus more on their own market, said CEO Stephen Chandler, noting that “it opens an opportunity for European businesses, such as ourselves to make some of the differences and be real.”
Some of the European concepts intend to “lead” by its new Development Fund III III are linked to increasing demand for greater sovereignty, including those specializing in its defense and supply chain. But like many, VC is also attracted by AI, which Chandler sees as a super cycle that causes “a deep shift to the way software is delivered and consumed”.
Capital Capital will not invest in the infrastructure mattress, such as large language models. Instead, the business sees opportunities at the level of implementation that will en masse the size of its market, Chandler said. While CEANTION’s flagship fund is historically known for its strong tendency for Saas, Cloud and Fintech, they will now be with AI-Faculty and will be integrated with new verticals.
The company is expecting to make twelve investments and has already begun to develop its capital. Offers to date include UPVEST, an API Trading Stock from the early stage portfolio, as well as Octopus Energy Spinoff external companies TriggerAnd Nelly, a start -up that creates software and financial products for the medical sector, according to Capital Capital.
To give some “strong objectivity”, in Chandler’s words, surveillance bids will be carried out by special partners of the Development Fund, who will “go out and get out of development outside the portfolio”.
TechCrunch event
Francisco
|
27-29 October 2025
One of them is the responsible Capital Partner Capital Stephanie opdam (to the left of the picture). Will now lead this development strategy parallel Jessica “Jess” BartosFormer Director at SalesForce Ventures. A US national, Bartos is also the first external lease of Capital partners (previous partners was promoted internally.)
“Because this was a new strategy, we thought we could benefit from external know -how at this stage of development,” Chandler said.
The subsequent development funds can also be easier to increase. While Europe has been lacking a lack of pension funds investing in business capital businesses, the incentives have begun to change in various countries, including France with the Tibi Initiative and the UK with the Accord Mansion House.
Despite its British roots, Capital Capital does not depend solely on the UK regulatory framework. This latest OPPS III Development Fund is expressed in euro and Luxembourg.
To increase this new vehicle, which brings its assets under management to over $ 1 billion, the company was based on its existing relationships with limited partners from all over the mainland, the United Kingdom, Mena and the US
“Something like 85% of our money comes from institutions and in it, we are very well geographically scattered,” Chandler said.
But while recent long -term institutional capital mobilization initiatives “[weren’t] Really a feature in this fund, “he added,” the signs are extremely positive, and that is great [for] Facing this fundamental problem with which we started, in terms of certain gaps in the development chapter we have in Europe. ”
“If there is finally working and more LPS are involved in the growth stadium investment, this could be translated into more competition for Capital Capital.
“Our real competitive advantage in this development strategy takes advantage of the range we have in our strategy at an early stage,” Chandler said. “Most growth chapters do not have this. They are out there trying to make all their supply to the development stage as soon as they put their heads over the scale and momentum.”
On the contrary, he said, Capital Capital has many points of contact with the founders over the years, including the very active platform group and is flexible in terms of control size.
Despite its extensive scope, OPS III’s main asset remains undoubtedly Capital’s portfolio. The company has invested in more than 150 newly established companies since its establishment, including Currentcloud, Gocardless, Mews, Paddle and Quantum Systems. While some are pre-existing, other companies are likely to include future champions-a history that should make external companies more willing to receive their growth controls, even if the development capital becomes less rare in Europe.
