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Highland Europe raises new EUR332m fund

Highland Europe has raised a new EUR332m tech growth fund, Highland Europe Technology Growth II.

This follows Highland Europe’s 2012 EUR250m Highland Europe Technology Growth I fund that invested in 15 technology companies including WeTransfer, AMCS, GetYourGuide, Outfittery, SocialPoint, Finanzcheck, TalentSoft, eGym, Intersec, NewVoiceMedia, Brandwatch, Matches Fashion, Jampp, LoveCrafts, and Malwarebytes.
Highland Europe’s partners – Fergal Mullen (pictured), Laurence Garrett, Irena Goldenberg, Sam Brooks and Tony Zappala – intend to continue investing this second fund with the same laser-focused growth-stage investment strategy: targeting rapidly emerging internet, mobile and software companies.  These companies are led by inspiring entrepreneurs who have demonstrated resourcefulness by achieving substantial revenue scale in a relatively short period of time, and on a capital-efficient basis.  The companies are always high-growth and have sensible business models from a unit-economics perspective. The partners aim to back sector-leading companies addressing large market opportunities either on a pan-Europe basis or globally.
Mullen, who joined Highland Capital Partners in the US in 2001 and who launched the firm in Europe in 2007, says: “The new fund was substantially oversubscribed, which reflected support for our focused strategy and early performance of Fund I. We had the pleasure of welcoming back all investors from Fund I – with many substantially increasing their commitments. In addition, we were honoured to welcome a very limited number of sophisticated new investors who have a long-term commitment to our asset-class.”
Laurence Garrett, Highland Europe partner, says: “In Europe, the early-stage investment market is relatively well-funded – but there is a relative under-capitalisation of the venture and growth-stage market. In the past, deals requiring investment of EUR10 million-EUR30 million were over-syndicated by European investors prompting many entrepreneurs to seek capital in the US. Highland Europe is simply meeting a market need within the venture capital and growth-capital eco-system.”

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