LONDON, U.K. – Blossom Capital has been performing well, especially with the latest funding round, which showcases the firm’s hand in European venture funds when it comes to US investments.
On Wednesday, Blossom Capital has announced raising its second round of funding, which reached around $185 million, only less than a year after concluding the $85 million inaugural funding. The latest investment pool of the firm is dedicated to early-stage startups in Europe.
The inaugural fund of Blossom Capital was already high enough to be ranked as part of the top 5% of funds raised in Europe and the US in 2019 based on the data published by Prequin and Cambridge Associates.
The better-than-expected performance of Blossom Capital helped increase the faith of its backers, which includes some major institutional investors as well as wealthy personalities. Ultimately, the higher sentiment of investors in the firm helped raise encouragement to invest in the second fund as well, only taking three months to reach its current standing.
The new fund the firm raised further shows the influx of US investments into the venture funds and startups in Europe.
European funding rounds through the influx of US money has significantly increased in recent years. Back in 2018, Europe recorded $10.9 billion, which increased to $16.6 billion for 2019, according to the data released by Dealroom.
The first investment pool of Blossom Capital backed startups, including the payment company Checkout, business travel site Duffel, cybersecurity company Tines, and the rental marketplace business Fat Llama.
The Blossom Capital in London was founded by Ophelia Brown and partners former Klarna product manager Louise and Brown Samet, Facebook veteran Mike Hudack, and engineer Imran Ghory.
Before founding Blossom Capital in 2017, Brown was previously in investment banking before working for Index Ventures and dipping in the venture capital industry, where she helped oversee several American investments of the firm.
According to Brown, during an interview, Blossom Capital works in a unique way when it comes to investing in startups compared to the majority of venture capital firms. She said that most firms in the industry usually do early-stage investing in about a dozen or two businesses from a single fund. Meanwhile, Brown said that Blossom Capital only backs five companies every year, taking a more concentrated but risky investment approach.
Brown stated that their approach to investing allows the four partners of the firm to devote more of their time to every portfolio company compared to other venture capitals. But, she also acknowledged that such an approach poses greater risks for the firm.