Europe is often criticized by tech industry experts for lacking sufficient “growth capital” funds compared to the U.S. However, this perception is not entirely accurate. Kennet, a growth equity investor, has recently raised €266 million for its largest fund, Kennet VI, focused on investing in B2B SaaS companies across Europe.
Kennet specializes in supporting established B2B SaaS startups that are founder-owned and either highly capital efficient or entirely bootstrapped. An example is Grip, a conference networking app that raised $13 million in 2021 with Kennet leading the round.
Kennet VI is the latest fund in a series of five funds managed by Kennet over the past 25 years, with successful exits like Eloomi, Nuxeo, Dext, CrossBorder Solutions, Rimilia, and Impartner. Kennet’s investment aims to help companies scale, expand internationally, build strong management teams, and create strategic value.
Hillel Zidel, managing director at Kennet Partners, shared in an interview with TechCrunch that the focus remains on backing bootstrapped and capital-efficient B2B software companies at the growth stage, with a track record of successful exits regardless of market cycles.
The Kennet VI fund received support from investors like Edmond de Rothschild Private Equity, Bpifrance, British Patient Capital, and Federated Hermes Private Equity.
Notably, there has been a rise in growth funds in Europe, with Index Ventures announcing significant new funds earlier this year. This trend in growth capital investment presents opportunities for entrepreneurs seeking to retain ownership and control while achieving sustainable revenue and profit growth.
