London-based Notion Capital has exceeded the target on its fourth fund and the firm expects to wrap up the vehicle at its hard-cap by the end of the year, as well as close on target with its second opportunities fund, Venture Capital Journal has learned.
The firm, which was founded in 2009 to invest in early-stage B2B SaaS companies in Europe, last year launched its fourth fund with a target of $150 million. Notion Capital has already raised $180 million for that fund, according to managing partner Stephen Chandler. He said the hard-cap is $225 million, and the firm should reach that when it closes at the end of the year. The firm previously raised $140 million for its third fund in 2015.
Notion Capital is already deploying capital from Fund IV.
Chandler didn’t discuss LPs, but said backers include US and European institutions, including endowments and sovereign wealth funds. Backers of Fund III included British Business Bank, Cisco Investments, Emory University, European Investment Fund and Texas A&M University System Endowment Fund, according to the Private Equity International database.
Meanwhile, Chandler said the firm is closing in on its second opportunities fund, which was launched after the pandemic. The target on that is $100 million, about 30 percent more than its first opportunities fund in early 2018. The opportunities fund makes later-stage investments in better-performing companies from its portfolio.
Chandler said that the firm had good momentum meeting with prospective LPs prior to the pandemic. “We have been unable to meet physically since then, but our progress shows that fundraising has not dried up in Europe,” he said.
The firm was launched in 2018 after founding partners and brothers Jos and Ben White sold their email security management company MessageLabs to Symantec for about $700 million. Chandler, who came over from UBS Investment Bank, and others joined the founding team in 2009.
Among the firm’s investments is the unicorn Tradeshift, a commerce platform. The firm is also an investor in GloFox, a management platform for fitness brands which adapted to the pandemic by pushing out a video tool that allows customers to stream virtual workouts.
In talking about the European investment scene, Chandler noted that Notion wants to continue to grow and strengthen the VC community. Last year, Notion launched Included VC, a fellowship program that aims to increase diversity within the venture ranks and within dealflow.
The firm is currently recruiting for its second fellowship, which Chandler said focuses on helping people who have little access to the VC world but are interested in learning more and entering.
“This isn’t about charity. We’re still looking to drive returns,” he said. “More diverse VCs equals more funding into start-ups with diverse founders and more solutions for diverse customers.”