Smartfin to Invest $257 Million in European B2B Tech Companies

Growth equity investor Smartfin has closed a new growth fund at 250 million euros (about $257 million), saying it will focus on growth-stage B2B technology companies across Europe.

Dubbed Smartfin Capital III, the new fund includes private and institutional investors as well as introductory participation of the European Investment Fund (EIF), which aims to address the financing gap experienced by European high-growth companies, Smartfin said in a Thursday (Jan. 9) press release.

“The partnership with EIF, through the ESCALAR program, is an international quality stamp that reaffirms our commitment to backing exceptional entrepreneurs and fostering innovation in Europe’s B2B technology ecosystem,” Smartfin Founding Partner Jürgen Ingels said in the release.

The firm’s first two investments with Smartfin Capital III are a global browser-based casual gaming platform called CrazyGames and a multi-cloud management platform for cloud infrastructure called Emma, according to the release.

The EIF’s ESCALAR program was established to provide growth financing to high-potential funds and companies, per the release.

Its participation in Smartfin will support an “innovation ecosystem” in which European technology companies and entrepreneurs can thrive, EIF Chief Executive Marjut Falkstedt said in the release.

“Investing in scale-ups and technology is not just about fostering innovation; it’s about empowering the next generation of leaders who will drive Europe’s economic growth and global competitiveness,” Falkstedt said.

It was reported in June that tech investments in Europe were blooming after a long fallow period, with venture capital groups raising new funds after a two-year drought.

In August, Balderton Capital said that it raised $1.3 billion for European tech startups and that the fund is a testament to the vibrancy of the European venture capital space.

“More people than ever are starting businesses — and those that do have global ambitions,” Balderton Managing Partner Bernard Liautaud said at the time in a blog post.

In October, the European Union (EU) teamed up with leading venture capital firms from across the region to increase investments in technological innovation. The EU said at the time that 71 investors with over 90 billion euros ($98 billion) in assets under management had committed to the Trusted Investors Network initiative and that the funds would be directed toward fields like artificial intelligence, robotics and advanced manufacturing.

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