Eight Roads Launches $450M Fund for European & Israeli Scaleups

Eight Roads Launches $450 Million Fund for European and Israeli Tech

European VC firm Eight Roads has announced the launch of its fourth fund, totaling $450 million. This fund will be dedicated to investing in technology companies located in Europe and Israel.

Investment Focus and Strategy

The firm intends to make approximately 15 to 20 investments across diverse sectors. These include consumer technology, Software as a Service (SaaS), fintech, and health tech.

Investment amounts will typically range from $5 million to $50 million per company. Eight Roads generally participates in growth funding rounds, providing capital to companies already demonstrating significant traction.

Firm History and Backing

Established a decade ago, Eight Roads operates with the backing of Fidelity. Previously, the firm was known as Fidelity Growth Partners and, prior to that, Fidelity Ventures.

The firm currently manages over $8 billion in capital, with investments spanning Europe, Asia, and the United States.

Fund Growth Over Time

The progression of Eight Roads’ fund sizes demonstrates its growth. The initial fund was valued at £100 million, followed by £150 million for the second. The third fund reached $375 million, culminating in the current $450 million fund.

Key Investment Areas and Climate Focus

Davor Hebel, Managing Partner and Head of Eight Roads Ventures Europe, discussed the firm’s investment priorities.

While a dedicated climate fund isn’t planned, Eight Roads integrates climate considerations across all investment sectors. The firm focuses on three primary areas within this context:

• Clean energy – exemplified by their investment in Tibber, a Nordic company promoting sustainable home energy management.
• Sustainable products – including investments in Otrium (fashion), Smol (household products), La Fourche (organic produce), VIU (eyewear), and Made (furniture).
• Climate change tools and enablers – such as technologies for carbon footprint measurement and reduction.

Emerging Investment Themes

Hebel highlighted the significant impact of the shift to remote work, driving investment in related HR systems. He also noted that “Every company needs fintech now,” indicating a strong focus on financial technology.

Digital health represents another major investment category, experiencing accelerated growth due to the pandemic.

The application of enabling technologies, particularly Artificial Intelligence (AI), is also a key consideration. An example is Glovo, a company offering internal talent marketplaces for large organizations.

Return to Office and Future Outlook

Regarding the firm’s own work arrangements, Hebel stated they are still adapting. A current plan of two days per week in the office is being evaluated to assess its effectiveness.