- London-based Notion Capital has raised its fifth and largest fund to date.
- The software-as-a-service investor has brought in $327 million from new and existing LPs.
- Notion has backed companies like fintech unicorn GoCardless and Currencycloud.
London-based investor Notion Capital has raised 300 million euros (around $327 million) for its fifth fund.
The venture capital firm, founded in 2009, is best known for backing GoCardless, a $2.1 billion fintech that counts BlackRock and Permira among its other investors, and cross-border payment startup Currencycloud, which was ultimately acquired by Visa for around $925 million in 2021.
The fund focuses on software-as-a-service and fintech companies in the UK and Europe with its latest fund domiciled in Luxembourg and denominated in euros. Notion’s fundraising effort confirms earlier reporting by Insider and comes at a time when a number of notable funds such as Tiger Global and TCV have struggled to bring in new cash from LPs.
“We were apprehensive about the market and have seen a lot of firms scaling back their target funds,” Stephen Chandler, Notion Capital’s cofounder and managing partner, told Insider. “It went well for us because we’re an established firm that has been building relationships over a number of years and has a strong track record and metrics. Also, we’ve been transparent with LPs on how we run our business and didn’t get ahead of ourselves in terms of deploying capital too quickly.”
Notion saw commitments from its existing LPs such as British Patient Capital and Novo Holdings alongside a bevy of new funds including Cortes Capital, KfW Capital, Shelby County Tennessee Retirement System, and TNO Pension Funds.
The fund’s focus will remain on its existing areas of strength having backed successful companies like Paddle and Yulife in the UK plus HeyJobs and Upvest in Germany.
“We continue to think that fintech is an exciting area, especially embedded finance, even though the wider sector is no longer the flavor of the day,” Chandler added. “We still particularly like business software-as-a-service models, particularly where there is now an embedded product element because of the stickiness and speed of growth in those businesses.”
In addition, Notion, which has made more than 100 early stage deals since its inception, will promote internal talent with Itxaso del Palacio becoming a general partner, while Stephanie Opdam and Kamil Mieczakowski become partners at the fund.
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