New $200m growth debt fund targets European tech start-ups

20 Jan 2022

Image: © Nuthawut/Stock.adobe.com

New firm Atempo Growth is responding to an increased demand for debt funding in the European tech ecosystem.

A new growth debt fund aimed at European tech start-ups has been launched by London-based venture debt platform Atempo Growth.

Founded in 2021, Atempo Growth has announced the first close of its debut fund, with commitments of more than $200m.

Future Human

The fund will target investments across Europe and is backed by investors including the European Investment Bank and Banco Santander.

It will provide flexible growth capital to companies with minimal equity dilution, which can be used to complement equity financing, support operational growth, acquisitions or other use cases.

The firm’s founders, Luca Colciago, Jack Diamond and Matteo Avramov Giulivi, have experience in the European debt space. Together, they have provided capital to more than 100 companies across a range of sectors, including money transfer platform Currencycloud and Prague payments start-up Twisto.

“Over the last decade, the European tech ecosystem has gone from strength to strength, and growth debt has played an important role,” said Colciago.

“Tech companies are increasingly adopting this source of funding to complement equity. Our pan-European team is well positioned to support high-growth companies, with over 30 years’ combined experience in the space.”

Atempo Growth is responding to an increasing demand for debt funding in the European tech sector.

According to estimates in Atomico’s State of European Tech 2020 report, venture debt activity in Europe increased by six to eight times over the previous decade. The report noted that debt can be an attractive financing option for venture-backed companies looking for alternatives to equity financing, but it still represents a relatively small share in the European financing market.

Atempo Growth expects to announce a second close in Q2 of this year to increase its footprint across Europe. It is also actively hiring to support its expansion.

Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.

Blathnaid O’Dea is Careers reporter at Silicon Republic

editorial@siliconrepublic.com