West Coast VC sets up new European fund

Venture capital source

Benchmark Capital has announced the formation of a separate European business, Balderton Capital, with around €1.5 billion under management. This makes it one of the largest venture firms in Europe.

“Seven years ago, we were the first Silicon Valley firm to set up a group of investors in Europe. Today’s announcement is the natural next step,” said Bruce Dunlevie, general partner of Benchmark Capital US. “It places all of us on a stronger, independent foundation for the long term.”

The firm says the move will not alter existing fund or investor structures. Benchmark’s US, European and Israeli portfolios have always been managed independently but have also been, and will remain, closely networked and substantially cross-invested. There will be no change in the Israeli team’s name or organisation, though the long-term goal is for it, too, to become an independent brand.

Since 2000, London-based Balderton has invested in over 70 companies across a wide variety of technology sectors and geographies, including UK, US, China, Russia and Scandinavia.

Investments include: Habbo Hotel, the teen social networking site; Alphyra, Europe’s largest payment processing network; MySQL, the open-source database business; Betfair the largest online betting exchange; Setanta Sports, Europe’s leading sports pay-TV broadcaster; and Bebo, the social networking site.