£83 million growth fund coming from European VC Octopus Ventures
European VC firm Octopus Ventures is launching a new £83 million fund to accelerate growth in its existing portfolio companies.
The fund is intended to support Octopus-backed companies as they transition into the later growth stages. It is understood to be backed by a number of undisclosed institutional investors.
Octopus Ventures’ portfolio includes high-growth firms including Zoopla and Secret Escapes. The firm is part of Octopus Group, the rapidly-growing group of purpose-driven businesses.
In an interview with Techcrunch, Octopus Ventures CEO Alliott Cole said the new fund will take a long view on its investments. He explained: “We manage around £800m in an evergreen venture fund which invests close to £200m a year into Seed and Series A, with a focus on the future of money, health and industry. This makes Octopus one of the most active venture investors in Europe.
“Because this fund is evergreen it is a great vehicle to take a very long-term view on investing and can be far more patient than a more traditional limited life venture fund which normally will invest for 3-4 years and then look to exit in the next 4-6 years.
“Our latest growth fund will invest in the best performing companies out of this venture fund when the founders are comfortable with their product market fit, and are ready to scale to the next level.”