MMC Ventures, the London-primarily based VC that in general invested at Seed and Sequence A by capability of the many funds it manages, has launched a brand recent £100 million “Scale Up” fund to form expansion capital to its later-stage portfolio companies.
Here’s a trudge we’re seeing a name of early-stage European VCs construct, similar to LocalGlobe with its “Latitude” fund, as they give the influence of being to double-down on existing investments at Sequence B and beyond.
The inducement is evident: as European tech continues to grow, changing into an increasing selection of plucky and world, investors don’t non-public to fetch diluted too primary and too early. Meanwhile, despite the indisputable truth that arguably there is an abundance of early-stage capital floating around, there are less European funds as you trudge to later stage.
MMC Ventures says its Scale Up Fund will provide most valuable capital to recent portfolio companies which non-public grown beyond the mandate of MMC Ventures’ existing funds. Particularly, then all every other time, MMC’s Scale Up Fund could well be accredited to participate in secondary transactions.
In a name with MMC’s Bruce Macfarlane (Managing Partner) and Simon Menashy (Partner), the pair explained that this intention that MMC can provide liquidity to early MMC and third-occasion investors who want to exit from one of MMC’s portfolio companies early.
In this capability, capital could well possibly moreover be recycled within the early-stage funding ecosystem, whereby, as an illustration, angel investors can lope all every other time by backing newly formed companies, while MMC maintains an extended-time period outlook.
However, in spite of the open of a later stage fund, Macfarlane says MMC’s core specialism stays as a Sequence A investor
Meanwhile, MMC has already made investments from the Scale Up Fund correct into a name of portfolio companies. They are Safeguard World (alongside Accel KKR), Masabi (alongside Smedvig Capital), and Interactive Investor.
The Scale Up Fund rounds off a name of hottest funds managed by MMC. The firm unbiased lately outed a brand recent £52 million seed fund in partnership with the Mayor of London. And blended with its annual EIS fundraise, the VC has added £200 million to its coffers in the remaining 12 months.
Over the remaining yr, MMC has invested more than £85 million across the pre-seed, seed, sequence A and later levels in amounts starting from £100,000 to £25 million. The firm also moved into recent higher places of work in Holborn, in Central London, which Macfarlane tells me is a signal of how bullish MMC stays just about U.Good sufficient. tech and in spite of Brexit.
“2019 has been a colossal yr for our firm, and the open of our recent Scale Up Fund represents a scale up moment for MMC as well as a most valuable innovation in the U.Good sufficient. enterprise market,” adds Macfarlane in a relate. “This Fund lets in us to double down on our most successful companies while enabling our investors, and others, to bag chunky or partial exits from early investments”.
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