Lakestar raises $385 million in Lakestar II fund to invest in startups

By | August 24, 2015

Today, Lakestar, European VC fund has announced it raising $385 million fund for its Lakestar II fund which will be led by Klaus Hommels, investor of Skype, Spotify and Facebook.

Klaus Hommels

The Zurich-based venture capital Lakestar has raised the latest Lakestar II which is said to be the single largest fund in Continental Europe. Though many European banks are struggling with funds because of Greek economy, European tech VC find it glitches-less to raise large funds. The funds have been planned to be invested in the startups’ early stage investments like seed funding and Series A rounds.

Having made it to Forbes Midas List of top VCs in 2014 and 2015 with the early investments in Skype, Spotify and Facebook, Klaus Hommels, founder and chairman of Lakestar has also invested in healthcare firm Oscar, AirBnB and other European startups like Teralytics, Algomi and GoEuro. Hommels stated there was high demand and could have raised up to $687 million by closed it at $385 million. “We got money from U.S endowments and top entrepreneurs plus wealthy Chinese families,” said Hommes.

Operating in Berlin, Zurich and New York, the firm is said to be able to bring together the countries for investors and startups. “The European technology market is continuing to boom. We are seeing high-quality investment opportunities in tech, in venture capital ecosystem that has materially improved and is increasingly producing billion-dollar companies,” said Hommes. He also added, “We are also seeing a shift in a way the most promising companies access funding – rather than going public, major players are seeking private funding later in their development, providing opportunities for follow-on investments in strong performers. Companies like AirBnB, Uber and Dropbox are raising on eleven-figure valuations.”