Growth-stage technology investor Highland Europe has launched a new $332m fund for rapidly-emerging tech companies.
Highland Europe Technology Growth II follows the previous $250 fund in 2012. That ended up investing in 15 technology companies including WeTransfer, SocialPoint and NewVoiceMedia.
The new funds’ investment strategy will largely follow that of the first by targeting emerging internet, mobile and software companies. The board has highlighted the intention to seek out inspiring entrepreneurs who have demonstrated resourcefulness by achieving substantial revenue scale in a relatively short period of time; and on a capital-efficient basis.
The partners aim to back sector-leading companies addressing large market opportunities either on a pan-Europe basis or globally.
Fergal Mullen joined Highland Capital Partners in the US in 2001 and launched the firm in Europe in 2007. He revealed the new fund was “substantially oversubscribed, which reflected support for our focused strategy and early performance of Fund I”.
“We had the pleasure of welcoming back all investors from Fund I – with many substantially increasing their commitments,” he continued.
“In addition, we were honoured to welcome a very limited number of sophisticated new investors who have a long-term commitment to our asset-class.”
Highland Europe partner Laurence Garrett added that, despite the early-stage European investment market being fairly well-funded, “there is a relative under-capitalization of the venture and growth-stage market”.
“In the past, deals requiring investment of €10M – €30M were over-syndicated by European investors prompting many entrepreneurs to seek capital in the US,” he said. “Highland Europe is simply meeting a market need within the venture capital and growth-capital eco-system.”