Balderton holds final close for $680m debut growth fund

Harriet Matthews
10 June 2021

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Balderton Capital has held a $680m final close for its debut growth fund Balderton Growth I, which will target early-growth companies, broadening the GP's existing VC primary and secondary strategies.

The final close took place in May 2021 and was above the amount that the fund set out to raise.

Managing partner Bernard Liautaud, general partner David Thévenon and general partner Rana Yared will lead the fund.

Balderton invests in early- and expansion-stage technology companies in Europe via its flagship strategy, generally participating in series-A rounds and making equity investments of $5-10m. The firm held a final close for its latest vehicle in the strategy, Balderton Capital VII, in November 2019 on $400m.

The GP held a final close for Balderton Liquidity I, its first direct secondaries-focused fund, in September 2018 on $145m. The fund invests in growth-stage companies that have raised more than $20m, acquiring stakes from their early-stage backers.

Balderton expects the number of European growth-stage opportunities will continue to increase significantly in the coming years, the GP said in a statement. The GP plans to build on the experience gained from its Liquidity Fund to provide capital for later-stage companies via its new dedicated vehicle.

Balderton said in the same statement that it has made 22 platform investments in the past 18 months, along with three IPOs and 11 add-on acquisitions.

Investors
LPs in Balderton VII include US-based pension funds, as well as the European Investment Fund and Kempen Capital Management, according to Unquote Data. Balderton's first secondaries-focused fund drew commitments from LPs including Dansk Vækstkapital and British Business Investments.

British Patient Capital announced in a separate statement that it has committed $75m to Balderton Growth Fund I. The firm also committed to Balderton VII, according to Unquote Data.

Investments
The fund will invest in around 15 companies, investing $25-50m per company, and making both primary and secondary deals. The vehicle will target technology-based startups in the UK and Europe.

Balderton's recent deals include the £1.7bn IPO of cybersecurity software Darktrace in April 2021, as reported by Unquote. The GP also sold its stake in UK-based fashion reselling app Depop to Etsy earlier in June 2021 in a $1.6bn deal.

People
Balderton Capital – Bernard Liautaud (managing partner); David Thévenon, Rana Yared (general partners).