Smartfin, a growth equity investor in European B2B technology companies, has reportedly closed its third growth fund at its €250 million target.
This fund marks a key milestone for the firm, with an introductory participation of the European Investment Fund (EIF) through its ESCALAR program to address the financing gap “experienced by European high-growth companies.”
The closure of its third growth fund reportedly brings Smartfin’s total investment commitments to more than €600 million.
The fundraise, in challenging market conditions, is said to underscore the confidence of investors in Smartfin’s investment strategy and track record.
The fund, Smartfin Capital III, will focus on growth-stage B2B technology companies across Europe, furthering Smartfin’s commitment to “supporting transformative tech scale-ups that drive innovation and deliver long-term value.”
Smartfin has made its first two investments “with the new fund: CrazyGames (a global browser-based casual gaming platform) and Emma (a leading multi-cloud management platform designed to streamline and optimize cloud infrastructure).”
Smartfin Capital III is the firm’s fifth fund, building on the “success of its two early-stage funds (Smartfin Ventures I & II) and two prior growth funds (Smartfin Capital I & II).”
In the past decade, Smartfin has established itself “as a key player in the European tech ecosystem, with a portfolio of innovative companies that span multiple sectors.”
Active and past investments across its funds “include Deliverect, a provider of food delivery integration software; Bright Analytics, a consolidated management reporting platform; Recharge, a global one-stop-shop branded payments platform; Hex-Rays, a specialist in reverse engineering software; Zivver, a secure communications platform for email, video and file sharing; Silverfin, a cloud-based platform transforming accounting workflows acquired by Visma,” among others.
These investments demonstrate Smartfin’s ability to identify and support exceptional growth companies, “helping them scale and succeed in competitive markets.”
Smartfin’s approach combines guidance, expertise, a long-term view and access to a network, ensuring that portfolio companies are “well-positioned to achieve their growth ambitions.”
Jürgen Ingels, Founding Partner of Smartfin, said:
“The partnership with EIF, through the ESCALAR program, is an international quality stamp that reaffirms our commitment to backing exceptional entrepreneurs and fostering innovation in Europe’s B2B technology ecosystem. We are excited to continue building on our strong track record and scaling the next generation of tech leaders.”
The inaugural participation of the EIF in Smartfin Capital III through its ESCALAR program represents “a significant endorsement of Smartfin’s investment philosophy and performance.”
ESCALAR, established by EIF to provide growth financing to high-potential funds and companies, will enable Smartfin to expand its “impact and support more promising ventures across Europe, while at the same time providing a stepstone in further institutionalizing its operations.”
Marjut Falkstedt, EIF Chief Executive said:
“Investing in scale-ups and technology is not just about fostering innovation; it’s about empowering the next generation of leaders who will drive Europe’s economic growth and global competitiveness. With Smartfin we want to support an innovation ecosystem where European technology companies and entrepreneurship can thrive.”