Atomico’s happy hunting ground: European startups in the tech sector.

Atomico, the immensely successful venture capital firm founded by Skype’s Niklas Zennström, raised $820 million for its fifth fund. Atomico V will primarily invest these funds in startups raising money in round A, particularly early-stage European tech companies. (Reuters)

However, given its size, the fund may also continue to invest at Series B and C into “breakout companies.”

Though Atomico V had a target of $750 million, investors committed a much higher amount. The raising brings the firm’s cumulative funding to an impressive $2.7 billion.

“Backed by breakthrough technology and innovative business models, we continue to believe that entrepreneurs are the ultimate game-changer,” Atomico said in a statement. “They take risks and push boundaries to rewire the world in favor of something better for as many people as possible.”

Atomico V’s European focus

Investment partner Siraj Khaliq told Reuters that a wealth of opportunities was available in Europe. Accordingly, the fund was not planning to invest anywhere else.

“Now the talent exists here, the mentorship exists here. All these key ingredients you need for European success stories actually exist,” Khaliq told CNBC. “It’s not to say we can’t be better, but we’re really on the track.”

Note that Atomico V is claimed to be Europe’s largest single “pure-play” venture capital fund – it only invests in early-stage startups.

Moreover, its focus sectors include consumer companies, frontier technologies and enterprise businesses that sell to medium and large companies.

Atomico V – An eclectic mix of investors

Investors include global institutional investors such as pension funds, fund-of-funds, sovereign wealth funds, insurance companies, endowments, banks, family offices and government-backed entities from across the world.

In addition, founders and early team members from highly successful startups, including Adyen, Klarna, Transferwise, Spotify, Skype, Supercell and Zoopla, have invested in the fund.

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