Venture capital fund EQT Ventures raises over €1 billion for tech startups

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Nov 9 (Reuters) – EQT’s venture capital fund (EQTAB.ST) said on Wednesday it had raised 1.1 billion euros ($1.1 billion) as it seeks to raise investments in tech startups next year as company valuations are low due to weak markets and soaring prices. inflation.

The Swedish fund, which originally invested in Finnish start-up Wolt before it was taken over by US delivery company DoorDash (DASH.N), said it planned to use the money to support early-stage technology startups in Europe and North America.

Ted Persson, a partner at EQT Ventures, told Reuters the fund had slowed its investment pace at the start of the year but plans to ramp it up in 2023.

He said the fund would be able to invest even more in companies as valuations were currently low due to market conditions, adding that there could also be an increase in startups from some enterprising employees laid off from their jobs. .

Due to the uncertain geopolitical situation coupled with soaring inflation and energy costs, venture capital funding has slowed since its boom in 2021.

In addition to reduced funding, high-flying startups have seen their valuations slashed by billions, including Sweden’s Klarna which in July was forced to raise capital in a cycle that reduced its valuation over 80%.

($1 = 0.9925 euros)

Reporting by Marie Mannes, Editing by Emelia Sithole-Matarise

Our standards: The Thomson Reuters Trust Principles.

Marie Mannes

Thomson Reuters

Gdansk-based journalist covering Nordic stock markets and general business news.

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