(Bloomberg) -- Cherry Ventures has raised 300 million euros ($340 million) for its fourth fund to back technology companies at the early stages of their development, giving it more firepower to make deals amid a European boom in venture capital.
Berlin-based Cherry said Thursday it will use the money to invest in sectors including finance and climate technology, as well as software and food. It’s also preparing a strategy for investing in the cryptocurrency sector. Some 60% of the funds will be reserved for follow-on investments with the remainder to be used for new companies.
Fresh capital will enable Cherry to keep up its relationships with companies as venture rounds in Europe surge and American investment firms move to set up operations locally. London alone recorded $26 billion in technology investment last year, more than double the levels of 2020.
“Overall it’s much more money in the market,” Christian Meerman, founding partner, said in an interview. “We now want to build out our position as Europe’s leading seed fund.”
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Cherry has backed regional technology companies such as online car-sales platform Cazoo Ltd. and indoor farming startup Infarm. E-commerce aggregator SellerX and rapid grocery delivery firm Flink are among its bets that have recently been valued at more than $1 billion.
The money flowing into the region is creating a promising environment for entrepreneurs and firms that fund them.
“It’s easier now to get access to really good advisers, angels, capital,” said partner Sophia Bendz. “The breakout companies grow bigger, faster. From an investor perspective it feels like the stars are aligned.”
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