Spotify’s First Backer Northzone Closes $500 Million Venture Capital Fund

November 19, 2019 | Fund Updates, News, Venture Capital

The venture capital firm looks to capitalize on early-stage companies.

Northzone, the Swedish venture capital firm that backed Spotify out of the gate, announced its largest fund to date.

The new $500 million fund will invest in early startups, according to multiple reports. This fund will be the ninth since Northzone’s inception more than 20 years ago.

Northzone said the $500 million fund “raised at record speed.”

The firm says the oversubscribed fund shows “the strong global interest in the European early-stage venture capital market.”

Northzone Gets Busy with Its Ninth Fund

This new fund will specialize in series A and series B stage investments. The firm says would “double down on investing in early-stage innovative consumer and enterprise companies across Europe and the US East coast”.

The fund plans to make roughly 25 venture investments with the fund. An interview with Yahoo indicates interest in the European market.

“By and large, there is more opportunity out there. So we decided to lean in and be more bullish in the market,” Northzone partner Paul Murphy told Yahoo Finance UK. “Our view is that Europe is in a really amazing place.”

Finally, Northzone famously invested in streaming firm Spotify and fintech firm iZettle. Murphy told Yahoo it has further interest in consumer review firm Trustpilot, fintech firm Klarna, and peer-to-peer lending company Zopa.

Related: Preqin and Vertex VC Report Shows $1 Trillion Market on Tap

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