Data-driven EQT Ventures raises second fund

The firm, which is part of Swedish private equity firm EQT, has raised €566 million for its second fund.

EQT Ventures, which invests in European companies growing internationally and U.S.-based companies looking to expand into Europe, has wrapped up its second fund with €660 million ($727 million), making it one of the largest venture funds in Europe.

The firm, which launched in 2016, had previously raised €566 million ($630 million) for its debut fund.

EQT Ventures, which is part of the Swedish private equity firm EQT, raised its inaugural fund largely from European LPs. The firm didn’t disclose backers of Fund II. But EQT Ventures said LPs included pension funds, insurance companies, financial institutions, foundations and family offices from new and existing investors from Europe, as well as the United States and Asia.

EQT Ventures has offices in Stockholm, Amsterdam, London, Luxembourg, Berlin and San Francisco.

When the firm launched, it developed an in-house machine learning platform called Motherbrain, which is used to search out promising companies and helps the firm guide its investment decisions.

To date, Motherbrain has helped to source five investments in the EQT Ventures portfolio, or about 10 percent of the portfolio: Peakon, Handshake, AnyDesk, Warducks and Standard Cognition.

The firm has already had its first exit from Fund I late last year when it sold its stake in Finnish mobile gaming company Small Giant Games to Zynga in a deal valued at $700 million. EQT Ventures led Small Giant Games’ $5.7 million Series A round in March 2017 and was the largest individual investor in the company.