Index closes EUR400m growth fund

01 February 2008

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Fund

Index Ventures has closed a EUR400m growth capital fund, Index Ventures Growth I LP. The fund is the first growth capital fund to be raised by Index Ventures and the first of its kind to be raised by a European venture capital firm. Index decided to launch a later stage-focused fund to complement its previous emphasis on early-stage investing and to address what it sees as a gap in the market. "We participated in two substantial funding rounds including one $100m+ deal with our early-stage fund Index Ventures IV LP and realised that there was significant demand from European companies for larger, later stage funding," explained a spokesperson for Index. As a result, Index brought Index Ventures Growth I to market in Q4 2007 and held a final close on 22 January 2008. The speed at which the fund was raised is believed to reflect strong performance from Index's other funds, as well as the fact that only existing investors in other Index vehicles committed to Index Ventures Growth I. "Our goal with the Index Ventures Growth Fund is to partner with entrepreneurs who have built successful, quickly growing businesses that have reached a stage where they are considering strategic alternatives including being acquired," said Dominique Vidal, newly appointed to Index Ventures Growth Fund.

Investors

The investors in Index Ventures Growth I were all existing investors in other Index funds. They included pension funds, endowment funds and family offices mostly based in Europe, with some US investors and a few Asian investors.

Investments

The new Index fund will follow Index's strategy of concentrating on the technology and life science sectors. It will also consider transactions in the cleantech sector, retail and the media. It expects to make equity investments of between EUR20-50m to acquire minority positions in European-based established and profitable businesses. The team will also selectively consider companies in Eastern Europe and the US that have plans to expand internationally. Index Ventures Growth I has the ability to invest in Index Ventures early-stage portfolio companies, but is more likely to make investments in companies which are yet to have received venture backing. The fund is expected to make two investments in life science companies per year and three to four in technology companies.

People

The growth investment team, which will be fully integrated into the existing investment team, will be led by Index co-founder Giuseppe Zocco; Dominique Vidal, previously CEO of Yahoo! Europe and co-founder of Kelkoo; and Guido Magni, formerly the global head of medical science, pharmaceutical division, F. Hoffman-La Roche Ltd.

Name

Index Ventures Growth I LP

Closed on

EUR400m

Focus

Growth capital opportunities, Europe

Contact

Giuseppe Zocco

Address

Index Ventures

52-53 Conduit Street

London W1S 2YX