The tech-focused VC firm closed on the new fund in just two months.

Highland Europe, the venture investment firm that was spun off from the U.S.-based Highland Capital Partners in 2012, has raised €700 million ($851 million) for its fourth and largest fund in record time.

Highland is having a great year in 2020

The latest fund is Highland’s fourth in eight years, bringing its AUM to a solid €1.8 billion. It invested €200 million in seven new companies. These were Alkemics, Cobalt, DominoDatalab, Farewill, Meditopia, Modulr and Supermetrics. (THE IRISH TIMES)

The firm also made 10 follow-on investments.

The firm’s portfolio companies mustered €730 million in follow-up investments over the last 12 months. Two of these companies found buyers.

“During 2020 we have seen 10-year trends in tech adoption compressed into one year across both consumer and business segments,” said co-founder and partner Fergal Mullen to Reuters.

Fergal told The Irish Times that 2020 may be the firm’s most successful year despite the pandemic.

Fundraising for the new fund commenced July 26 and wrapped up on September 24. It was conducted entirely online using phone calls and videoconferencing. Most subscribers to this fund were existing Highland Europe investors.

“Just as mission-critical tech and innovation have been instrumental in enabling businesses and individuals to continue functioning during the pandemic, technology looks set to play a key role in an eventual economic recovery,” Highland said in a statement.

Investing strategy

Highland Europe will deploy funds in six to eight companies annually over the coming three years.

Typically, the firm focuses on high-growth companies in enterprise software and the consumer internet. Previous investments include  AMCS, Brandwatch, ContentSquare, Featurespace, GetYourGuide, Huel, Jellysmack, MatchesFashion, Nexthink, PhotoBox, WeTransfer, Zwift and Wolt.

“During 2020 we have seen 10-year trends in tech adoption compressed into one year across both consumer and business segments,” says Mullen. “Software has gone mainstream and it is mission-critical. The opportunity at the growth stage in Europe has never been more evident or more urgent.”

The firm elevated Jean Tardy-Joubert and Gajan Rajanathan, both formerly of investment banking boutique Qatalyst, and Chief Financial Officer Ronan Shally to partner.

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