Blossom Capital raises $85M fund to do ‘excessive conviction’ Collection A investing in Europe

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Blossom Capital, the enterprise capital agency co-founded by ex-Index Ventures and LocalGlobe VC Ophelia Brown, is asserting that it has raised an $85 million fund to put money into European tech startups at Collection A stage.

LPs within the new fund, which TechCrunch reported early particulars of twelve months in the past, are mentioned to span main institutional buyers, in addition to high-profile tech entrepreneurs. The latter consists of Robinhood co-founder Vladimir Tenev, and Zendesk founder Mikkel Svane.

In the meantime, alongside Brown, Blossom’s different companions are Imran Ghory, who beforehand led data-driven deal sourcing at Index and was head of knowledge insights at MarketInvoice; Mike Hudack, who till very lately was CTO at Deliveroo and previous to director of product at Fb; and Louise Samet, a reasonably lively angel investor and who beforehand labored at Klarna as a digital product supervisor.

Additionally noteworthy, eagle-eyed readers can have seen that the brand new VC agency seems to have a misplaced a founding associate already: former Uber China govt Candice Lo was beforehand listed on the Blossom Capital web site as a Blossom co-founder and associate however TechCrunch understands has since departed.

“It’s been an honour being a part of the group at Blossom, however I’m leaving to spend extra time with household,” mentioned Lo in an announcement issued to TechCrunch. “The fund has reached an unimaginable milestone and I will probably be cheering the group on as they proceed to develop Blossom in Europe.”

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In a name with Brown late final week, she mentioned that Blossom goals to differentiate itself from different Collection A buyers in Europe by embracing a extra “West Coast” strategy with what she calls “excessive conviction” investing. The agency will write bigger cheques than many Collection A buyers — within the area of $5m to $10m — and plans to do solely Four-5 offers per yr, which, once more, is sort of uncommon.

The thought is to put fewer however greater (and doubtlessly riskier) bets and provides the restricted variety of firms Blossom backs sufficient runway to get to a significant Collection B. Arguably, it additionally means the Blossom group, which stays small, gained’t be spreading the help supplied to its portfolio too skinny.

On that observe, Blossom has already backed 4 firms. They’re Duffel, Fats Llama, Frontify, and Sqreen. Co-investors have included Y Combinator, Greylock and Index Ventures -– some first rate names for a brand new agency, to say the least.

One other side that Brown talked up is Blossom’s use of knowledge to supply and help offers. Each companions Ghory and Hudack have technical backgrounds — which ought to make them particularly technical founder pleasant — and I’m instructed the agency has developed expertise that pulls in varied knowledge to search for alerts of promising firms throughout Europe’s disparate and fragmented ecosystem.

The pondering, says Brown, is to make sure a small agency like Blossom can nonetheless supply offers in a few of Europe’s extra hidden tech hubs, somewhat than simply the foremost ecosystems. She declined to enter a lot element on precisely what knowledge is getting used, clearly cautious to not give away any of Blossom’s secret supply.

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Extra broadly, VCs are more and more pinning extra of their success on the usage of knowledge, whether or not that be throwing knowledge scientists and analysts on the downside or constructing bespoke software program. Two different European companies considered taking an identical strategy to Blossom are London-based InReach Ventures and Berlin’s Fly VC.

“For those who take a look at the massive outcomes in Europe, round 70 p.c of them at the moment got here from outdoors of the foremost hubs, in nations equivalent to Romania, Finland and Portugal,” writes Brown in a weblog submit. “Information permits us to cowl your complete continent, not simply the foremost and overfished capitals like London, Paris, Berlin and Stockholm”.


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