American venture capital investor Accel is increasingly splitting its attention between both sides of the Atlantic. It has just announced parallel USD 650 million funds for Europe and Israel, on the one hand, and the US, on the other. Additionally, Accel is starting a USD 1.75 billion global growth fund.
Accel has invested in a number of promising German start-ups, including Celonis, Check 24 and Personio from Munich, Bryter, Sennder and Trade Republic from Berlin, and Hamburg’s Taxdoo. More than ten companies in Accel’s portfolio have achieved unicorn status in the past six months.
“Europe and Israel are at an astonishing turning point and have matured really well,” Accel Partner Harry Nelis told business newspaper Handelsblatt. “What’s exciting about Germany is that innovative companies are being born all over the country.”
Accel’s increased interest in Europe is very much part of a larger ongoing trend. The latest German Venture Capital Barometer from German economic development bank KfW and the German Private Equity and Venture Capital Association (BVK) found the mood among investors in Q1 2021 to be more positive than at any time since 2018 and near its highest level ever.
Online platform Sifted and data site Dealroom project that EUR 94.9 billion in VC will be invested in Europe by the end of 2021 – a 143 percent increase over 2020’s figure of EUR 38.7 billion.