Amidst the global investment slowdown, Europe’s resilience and long-term prospects have caught the attention of LPs who are now favoring transatlantic VC firms. In January, Giant Ventures closed two funds totaling $250 million to invest in startups on both sides of the Atlantic. Today, it has been exclusively learned by TechCrunch that Frontline Ventures has also raised $200 million across two funds, Frontline Growth and Frontline Seed.
Frontline has a history of investing in Europe and North America, and its new funds will continue this strategy, focusing on B2B software companies. The seed fund will prioritize European ventures, while the growth fund will target U.S. startups.
Frontline believes that U.S. scaleups have a higher chance of success when expanding operations to Europe. Despite being perceived as an undervalued market, Europe contributes over 30% of global revenues for top B2B software companies at IPO, as stated by Brennan O’Donnell, co-lead for Frontline Growth.
Contrary to negative headlines, Europe’s venture landscape shows promise, with startups raising more capital in recent years compared to 2019. While investment levels have slowed, Europe has outperformed Asia and North America in maintaining investment levels above pre-pandemic norms.
Frontline’s commitment to Europe is evident in their research, aiming to help U.S. companies expand effectively. Their focus on timing, go-to-market strategy, talent, and organizational design guides portfolio companies like Lattice and Vanta in successfully expanding to Europe.
Expansion Roadmap
Frontline’s framework for expansion emphasizes customer location, talent base, and strategic planning. This methodology has proven successful with companies like Lattice and Vanta, demonstrating the value of careful strategy in scaling across continents.
Frontline’s network of executives in Europe and the Middle East supports portfolio companies, fostering growth and market leadership. With an eye towards potential IPOs and strategic scaling, Frontline is dedicated to guiding their seed investments towards successful Series A rounds.
Frontline Seed’s strong track record in assisting companies with Series A fundraising showcases their commitment to supporting European startups on the journey to becoming transatlantic scaleups or potential IPO candidates.
