Venture capital fund Blossom raises £316m to fund investments

London-based venture capital firm Blossom Capital raised $432m (£316m) in its latest funding round, reaching almost $1bn in funding in three years.

Bosses said they plan to invest a third of the money raised in its third round of funding into crypto ventures as it emerges into the mainstream arena.

The VC’s previous investments include, the UK’s largest $40bn (£29.3bn) private fintech company; Moonpay, a major crypto infrastructure provider valued at $3.4bn (£2.5bn); and Duffel, which helps airlines integrate more easily with online travel businesses.

With this new fund, we continue our high conviction strategy of providing grassroots capital to entrepreneurs

Ophelia Brown, flower capital

Managing partner Ophelia Brown, who previously worked for venture capital giant Index Ventures, said she had secured funding from some of America’s top universities and foundations.

She added, “They share our belief that seed capital can have an outsized impact on the trajectory of a business.

“With this new fund, we are continuing our high conviction strategy of providing seed capital to entrepreneurs.”

Blossom recently recruited new managing partner Alex Lim from Silicon Valley-based investment firm IVP, whose previous investments include Discord Hopin and UiPath.

The VC explained that around 30% of the deals it has signed have come from AI technology rather than traditional methods.

Mr. Lim said: “Fund III is the latest step in our mission to support a new generation of world-class European companies.

“Founders need more than capital from an early-stage investor; they need partners who go above and beyond to succeed.

“We have built a diverse partnership and a tailored service offering, and we are constantly striving to provide ever higher levels of service to European founders.”

European tech companies had a banner year in 2021, with the total amount of venture capital raised increasing 2.5 times from $42.9bn (£31.4bn) to $109.3bn (£80.1 billion).

At the same time, however, the number of completed deals only increased by 10%, according to figures from data analysts

This shows that the individual round sizes are getting considerably larger.

Blossom said that although he has more money at his disposal, he plans not to increase the number of investments but to increase the amount he spends instead.

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