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Home » News » Accel Raises $650 Million Fund to Boost European and Israeli Startups

Accel Raises $650 Million Fund to Boost European and Israeli Startups


Accel, an early investor in Facebook and Spotify, has announced the launch of a $650 million fund dedicated to supporting early-stage startups in Europe and Israel. This move reflects renewed optimism in the venture capital market and underscores Accel’s commitment to fostering innovation in key tech hubs.

Accel’s latest fund, its eighth in Europe, aims to nurture ambitious founders and propel the growth of innovative startups in the region. With a focus on AI and cybersecurity, the fund seeks to identify and support companies poised to redefine their respective industries.

Harry Nelis, a general partner at Accel, highlights the significant evolution of Europe’s tech ecosystem since the firm’s inception in London in 2001. Over the past 25 years, Europe has witnessed a remarkable rise in venture-backed unicorns, signalling a maturation of the startup landscape.

Nelis remarked, “The environment has dramatically changed since then. People would ask us, can Europe generate $1 billion outcomes? Now, there are more than 360 venture-backed unicorns across Europe and Israel…” 

The fund’s success reflects Europe’s burgeoning talent pool, driven by a “flywheel” effect where experienced employees from unicorn companies transition into founders of new ventures. Countries like Lithuania and Romania are emerging as tech hotspots, boasting successful startups like Vinted and UiPath, respectively.

Accel plans to invest in 25 to 30 companies from its latest fund, leveraging its strategic insights and network to identify promising opportunities. Despite macroeconomic uncertainties, the firm’s ability to raise a sizable fund underscore growing confidence in Europe’s tech sector.

Victor Riparbelli, CEO and co-founder of Synthesia, a generative AI startup, stated, “It was really important to us to partner with a fund that is as focused as we are on delivering real, tangible business value.” 

While AI remains a focal point for innovation, Accel adopts a disciplined approach, focusing on AI application companies rather than solely chasing hype. Europe’s strengths lie in developing AI applications, complementing the dominance of U.S. giants in foundational AI technology.

Accel’s previous investments in companies like Synthesia demonstrate its commitment to backing visionary yet pragmatic technologies. By prioritizing tangible business value, Accel aims to drive sustainable growth and propel Europe’s tech ecosystem forward.

Accel’s latest fund marks a milestone in Europe’s tech landscape, signalling a resurgence in venture capital activity and underscoring the region’s potential for innovation. With a strategic focus on AI and cybersecurity, Accel aims to catalyse the growth of transformative startups and shape the future of technology. As Europe continues to produce groundbreaking companies, Accel stands ready to support the next generation of industry leaders on their journey to success.


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