Blossom Capital, an early venture capital firm, co-founded by LocalGlobe VC Ophelia Brown and ex-Index Ventures, announces the creation of a second fund, less than 12 months after the closing of the first fund. The new fund, which is described as “highly re-signed,” stands $185 million up from $85 million around first time.
Blossom’s scope remains largely unchanged: to be the leading investor in European technology startups A, as well as enter into seed deals. In particular, venture capital will continue to focus on finance, design, marketplaces, travel, developer tools, infrastructure, and API-oriented companies.
Its differentiator is the so-called “high degree of conviction” investment, which involves supporting fewer companies by writing larger checks, as well as maintaining close ties with top-tier US investors who are ready to support portfolios in the next step.
And while numerous European VCs call it “the bridge to the valley,” Blossom’s reputation still reveals this fact, even if it is only in its infancy. From the firm’s portfolio, the Duffel travel booking platform received two additional investment rounds led by Benchmark and Index Ventures; Tines cybersecurity automation platform has received additional investments led by Accel Partners; and Unicorn Checkout.com payments are also supported by Insight Partners.
In addition, about half of Blossom LPs are located in the United States, and that all the original LP firms invested in this second fund, which, Brown admits, were much easier to obtain than the first. This is likely due to ratings that Blossom can already advertise.
Broadly, other partners of Brown and Blossom – Imran Gori, Louise Samet and Mike Hudack – contend that historically the most successful European companies were those that had options to attract American investors, but companies no longer need to move to the United States to take this opportunity.