Klarna-Backer Atomico Raises $1.24 Billion for European Startups

Atomico, a London-based venture firm that has backed fintech darlings Stripe Inc. and Klarna Bank AB, has raised $1.24 billion for two new funds.

The dual fund strategy, which includes its first dedicated arm for growth capital, is a response to a dearth of late-stage technology financing in Europe, Chief Executive Officer Niklas Zennström said in an interview. According to Atomico data, US startups are 40% more likely to raise capital five years after forming than European peers. “There’s a funding gap,” Zennström said.

Niklas Zennstrom, chief executive officer of Atomico UK Partners LLP, at the Founders Forum Global conference in June, 2024.

Photographer: Jose Sarmento Matos/Bloomberg

Like startups, venture firms have been struggling to raise money. Falling valuations, high ...