Summary:
Kennet, a European growth equity investor, raised €266 million for its largest fund to date, Kennet VI, focusing on B2B SaaS companies.
Kennet's strategy focuses on backing founder-owned, capital-efficient, and bootstrapped B2B SaaS startups.
Kennet prioritizes companies with strategic value, generating successful exits and impressive returns on investment.
Kennet VI is backed by prominent investors, demonstrating growing confidence in European growth funds.
The rise of growth funds in Europe provides valuable capital for established companies to scale, expand internationally, and achieve strategic goals.
Growth capital is an attractive option for entrepreneurs seeking to retain control, bootstrap their businesses, and build sustainable, profitable companies.
European Growth Funds Are Not Dead: Kennet Raises $287M for B2B SaaS Startups
While Europe is often criticized for lacking sufficient growth capital funds compared to the US, that's not entirely true. Kennet, a growth equity investor, has just announced raising €266 million for its largest fund to date, Kennet VI. This fund is dedicated to investing in B2B SaaS companies across Europe, particularly those that are founder-owned, capital-efficient, and bootstrapped.
Kennet's focus on bootstrapped companies is unique in the market and has yielded impressive results. They prioritize companies with strategic value, believing that strong businesses can succeed regardless of market cycles. This strategy has led to successful exits, including Eloomi, Nuxeo, Dext, CrossBorder Solutions, Rimilia, and Impartner, generating a significant return on investment.
Kennet VI is backed by prominent investors including Edmond de Rothschild Private Equity, Bpifrance, British Patient Capital, and Federated Hermes Private Equity. This demonstrates the growing confidence in European growth funds.
The rise of growth funds in Europe is a positive development for entrepreneurs. These funds provide crucial capital for established companies to scale, expand internationally, build strong management teams, and achieve strategic goals.
This trend is not limited to Kennet. Index Ventures recently announced $2.3 billion in new funds, with a significant portion dedicated to growth- and late-stage companies.
The "growth capital" sector is an attractive option for entrepreneurs who prefer retaining ownership and control, bootstrapping over a longer period, and focusing on building sustainable, profitable businesses.
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