On the heels of Romanian-founded enterprise startup UiPath raising at a $7 billion valuation, its biggest investor is announcing a new fund to double down on making more investments in Europe. VC firm Accel has closed a $575 million fund — money that it plans to use to back startups in Europe and Israel, investing primarily at the Series A stage in a range of between $5 million and $15 million.
A New Fund for European Startups
At $575 million, this makes the fund one of the largest in the region, and it brings the total managed by Accel in Europe to $3 billion. Accel has been behind some of the biggest startups to have come of age in Europe in recent years, including Avito, BlaBlaCar, Celonis, Check24, Deliveroo, Doctolib, DocuSign, Funding Circle, Spotify and Supercell, alongside UiPath.
Some — like Spotify — have become leaders in their respective segments (in Spotify’s case, music streaming), and so Accel has, by association, played a strong part in helping grow the wider tech ecosystem in Europe. That ecosystem still lags behind the U.S. in terms of value. According to figures from KPMG, $136 billion was invested in startups in the U.S. and Americas in 2018, while Europe saw only $24.4 billion invested in the same period.
A Growing Tech Ecosystem in Europe
However, even with dramatic drops in activity in the U.K. and France — thanks respectively to Brexit and domestic economic tensions — that was up by more than $2 billion on 2017, with median deal sizes also going up. Philippe Botteri, a partner at Accel (who works alongside six other partners and principles based out of London), said that in addition to the average size of a Series A creeping up in value and proximity (essentially, the A round is raised sooner after seed than it used to be), another noticeable difference is the fact that the European opportunity has become more decentralised.
"Fifteen years back, a lot of the market was in the U.K. and Israel," he said, "but in the last five years, we have invested across 22 different cities. Who would have thought that UiPath, one of the most successful startups currently in enterprise software, would come out of Bucharest? We are seeing ambitious founders and great companies emerging from everywhere now in the region."
A Buyers’ Market for European Startups
Indeed, the drop in investments being made in the U.K. and France also speaks to that trend, and also underscores that right now still seems to be a buyers’ market for European startups. With fewer investors competing for deals, Accel’s new fund is well-timed to capitalize on this opportunity.
Accel’s Investment Strategy
As part of its investment strategy, Accel will focus on supporting startups in key areas such as AI, cloud computing, cybersecurity, and fintech. The firm has a proven track record of investing in successful startups, and with its new fund, it is poised to continue this trend.
A Growing Presence in Europe
Accel’s growing presence in Europe reflects the region’s increasing importance in the global tech landscape. With its new fund, Accel is demonstrating its commitment to supporting European startups and entrepreneurs, and helping them achieve their full potential.
Conclusion
In conclusion, Accel’s $575 million fund marks a significant milestone in its investment strategy for European startups. With a proven track record of investing in successful startups, Accel is well-positioned to capitalize on the growing tech ecosystem in Europe. As the region continues to grow and evolve, Accel will be at the forefront, supporting entrepreneurs and startups as they shape the future of technology.
