Berlin-based Cherry Ventures has successfully closed its latest fund at $500 million, marking a significant step in the firm’s efforts to boost early-stage investments and support follow-on rounds for Series B and beyond. This fund aims to strengthen Europe’s venture capital landscape, which has been often criticized for lacking the scale of U.S. VC giants raising billion-dollar-plus funds.
In a statement, Cherry Ventures shared its bold aspiration of building the “first trillion-dollar company in Europe,” challenging the prevailing pessimism about Europe’s economic future. While this ambition is admirable, the path to such a company remains uncertain, as evidence of European startups on the trajectory to such valuations is still limited.
A key area of concern is the booming AI sector, where European companies are lagging behind their U.S. counterparts. Recent data reveals that European AI startups raised around $8 billion, while U.S. firms secured a massive $97 billion in funding. Despite the crucial role of capital in scaling startups, Cherry Ventures and other investors acknowledge that money alone is not the entire equation.
Cherry Ventures has not specified a timeline for its trillion-dollar goal, but its fund is positioned to drive innovation in key sectors. However, Europe’s startup ecosystem faces some headwinds. In the U.K., for instance, venture funding in October saw a 50% decline from the previous quarter, with startups securing only about $2.9 billion, according to a Dealroom and HSBC Innovation Banking report.
Notably, Cherry Ventures was absent from last year’s HEC-Dow Jones Venture Capital Performance Ranking, with Earlybird Digital East Fund taking the top spot. Meanwhile, other European VCs, like Balderton Capital—backer of Revolut—have managed to secure substantial funding, raising $1.3 billion for European tech startups, while also noting Europe’s challenges in the AI race.
Cherry Ventures’ previous fund, launched in early 2022, raised €300 million ($312 million). Its portfolio includes companies such as space tech startup The Exploration Company, grocery delivery platform Flink, neurosurgical microbots company Robeaute, logistics unicorn Forto, and Flix SE, the owner of Greyhound.
The firm’s new fund counts entrepreneurs like Miki Kusi of Wolt, Ilkka Paananen, CEO of Supercell, and Jochen Engert from Flix as key limited partners. Cherry Ventures has seen 18 successful exits to date, including CoW Swap, Ninetailed, and Homelike, further proving its track record in the European VC ecosystem.
Related topics:
Asian Markets Mixed as Traders Weigh US-China Trade War and Tech Earnings
Chinese Stocks Slip as Trade Tensions Weigh on Market Sentiment
China Strengthens Yuan Amid Trade Tensions, Defies Depreciation Pressure
