London-based Octopus Ventures, which last year revealed it had a $91.3m early stage fund, is today launching an new, separate, $140m fund designed to providing growth capital to “successful fast-growing later-stage companies across Europe”. The Octopus Zenith Opportunities II LP (“Octopus Opportunities fund”), will also provide much-needed follow-on investments into existing companies within the Octopus portfolio and invest between £250,000 and £25 million.
The first investment has been made, with Octopus leading the recent $60m round with Google Ventures into Secret Escapes, the London-based members-only luxury travel site.
In a statement Alex Macpherson, head of Octopus Ventures, said: “As the European ecosystem continues to develop and mature, this $140m fund allows Octopus to continue backing talented entrepreneurs from an early stage, but then to provide crucial on-going support.”
The appearance of more growth funding is welcome in Europe, which tends to be starved of these kinds of funds, forcing startups to head abroad (usually the US) to find it.
The move follows a new trend of growth funding in Europe. In June Fidelity Growth Partners Europe announced a new £150 million (nearly $250 million) fund and a complete rebrand under the new name of Eight Roads Ventures.