AXA Venture Partners (AVP) has recently unveiled its ambitious goal of raising a €1.5 billion ($1.6 billion) late-stage fund.
According to reports, the fund aims to support promising tech startups in Europe and North America, specifically targeting companies that anticipate going public within the next three to four years.
In a statement released on Wednesday, AVP disclosed that French insurance giant AXA SA, serving as the primary source of capital, intends to contribute a substantial $805 million (€750 million) anchor investment.
The first closing of the fund is anticipated to take place in the first quarter of 2024, followed by a final close the following year.
AXA Venture Partners aims to support innovative startups
The announcement comes at a time when the initial public offering (IPO) market is facing challenges on both sides of the Atlantic due to concerns over inflation, the ongoing conflict in Ukraine, and negotiations surrounding the debt ceiling in Washington.
As a result, venture capital funding for startups has experienced a decline amid a broader slowdown in the tech industry.
AXA Group Chief Investment Officer Jean-Baptiste Tricot expressed confidence in the initiative, stating, “The strength of AXA’s balance sheet allows us to make such a commitment and to benefit from technology tailwinds, which are clearly long-term trends. We also believe that the recent correction in valuation in the tech sector will provide opportunities in the years to come.”
The new fund expands the scope of AVP’s existing funds, which already cover various stages, including venture, growth, and funds of funds. Furthermore, the fund has the potential to maintain its investments even after the startups go public. AVP will continue to prioritise investments in software, fintech, insurtech, digital health, and consumer technologies.
Since its establishment in 2016, AVP has made approximately 60 investments. With the introduction of this new fund, the firm aims to finance around a dozen new startups, providing substantial financial support of up to $160 million per investment. Approximately two-thirds of the investments are planned for European startups, emphasising AVP’s commitment to the region’s burgeoning tech ecosystem.
Join AXA experts at ITI USA 2023
To find out more about AXA’s latest strategies and innovations by joining their experts at Insurtech Insights USA 2023 on June 7th and 8th, at the Javits Center in New York. AXA’s expert speakers at the event are:
- Frank Desvignes, Head of Global Open Innovation, AXA Next
- Alex Scherbakovsky, General Partner, AXA Venture Partners
- Stacey Brown, Head of Global Technology Innovation, AXA XL
To find out more, click here