UK-based Seedcamp launched its third fund yesterday and is aiming to raise more than $30m as it transforms from an accelerator to an early-stage venture firm.
The fund has reached a first close of $28m, TechCrunch reported, of which half is being provided by the European Union-backed European Investment Fund. Corporate investors include Russia-based internet company Yandex, recruitment agency Hays Recruitment, DC Thomson Ventures, the corporate venturing unit of publisher DC Thomson.
Other limited partners for the fund include venture capital firms such as Index Ventures, Octopus Ventures and Real Ventures, as well as assorted angels and Fidelity Growth Partners, the venture capital subsidiary of financial services firm Fidelity Investments.
Seedcamp initially operated as an accelerator when it launched in 2007, and corporates including publishers Reed Elsevier and Bertelsmann were among the limited partners for its $2.6m second fund in 2011.
However, it will now seek to shift its focus from the accelerator model, which it claims is well honed in Europe, to scaling up companies and also intends to ramp up its presence in the US.
“In our experience, providing the first $75,000 investment and a three-month program to support the growth of a $10m business is not good enough anymore,” Seedcamp explained in a blog post.
“Breakout success is all about scale and getting the $200,000, $2m, and $20m of investment that will help build a $1bn business.”
Seedcamp made the announcement at the same time as news emerged that it had provided an undisclosed amount of seed funding to self-publishing startup Reedsy in conjunction with DC Thomson.