Brussels-based Smartfin, a venture and growth capital investor, has announced the closure of its third growth fund, Smartfin Capital III, with a total of €250 million. This development reinforces the firm’s focus on supporting growth-stage B2B technology companies across Europe. With participation from the European Investment Fund (EIF) through its ESCALAR program, the fund aims to enhance Smartfin’s ability to nurture Europe’s innovation ecosystem. Smartfin’s strategic approach reflects its intent to empower entrepreneurship and technology-driven economic growth in the region.
What is the purpose of Smartfin Capital III?
The primary objective of Smartfin Capital III is to invest in European growth-stage B2B technology companies, addressing the needs of scale-ups in various sectors. The fund has already initiated its first two investments: CrazyGames, a platform focused on browser-based casual gaming, and Emma, a cloud management solution optimizing multi-cloud infrastructure. Smartfin’s portfolio aligns with its strategy of fostering scalable innovation in the European tech landscape.
How does this fund build on Smartfin’s history?
Building on the success of its previous funds, Smartfin Capital III becomes the firm’s fifth investment vehicle. This includes two early-stage funds (Smartfin Ventures I & II) and two prior growth funds (Smartfin Capital I & II). Over the past decade, Smartfin has invested in notable companies like Deliverect, Bright Analytics, and Recharge, establishing itself as a significant player in Europe’s technology investment ecosystem. The addition of EIF’s ESCALAR backing further institutionalizes and strengthens the firm’s operations.
Smartfin’s history indicates consistent growth and adaptation to market needs, with investment strategies that cater to both early and growth-stage ventures. Earlier initiatives lacked the ESCALAR partnership, which now provides increased financial capacity and credibility. Such collaborations point to a maturing European tech investment landscape, with Smartfin positioned at its forefront.
While announcing the fund, EIF Chief Executive Marjut Falkstedt emphasized the importance of supporting innovation-driven companies, stating:
“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.”
Smartfin’s Founding Partner, Jürgen Ingels, also noted the significance of this milestone, remarking:
“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.”
Smartfin’s open-ended investment philosophy remains a key aspect of its strategy. By combining venture capital expertise with operational experience, the team aims to build and scale leading international technology companies. Past investments in companies like Zivver and UnifiedPost highlight its diversified approach across various technology-driven industries.
This development underlines the critical role of venture and growth capital in addressing the funding gap faced by many European scale-ups. As the demand for growth-stage funding continues to rise, initiatives like Smartfin Capital III play a pivotal role in enabling tech companies to expand operations, enter new markets, and innovate further.
