Notion Capital Raises $130M Growth Fund
Notion Capital, the London-headquartered venture capital firm, has raised a $130 million fund to target Europe’s persistent shortage of growth-stage capital. The vehicle, called Growth Opps III, is nearly double the size of its previous fund and will back both portfolio and external companies.
The announcement highlights a growing trend among early-stage firms in Europe: stepping up to fill the follow-on funding gap left by U.S. venture capital investors, who are now more focused on their home market.
Stephen Chandler, managing partner at Notion Capital, said the opportunity for European firms is significant. “This opens up a chance for firms like ourselves to become real European champions,” he explained.
Notion Capital Targets AI and Strategic Sectors
The new fund will focus on areas shaped by rising demand for sovereignty and resilience. This includes companies in defence and supply chain logistics, as well as firms harnessing artificial intelligence.
Chandler described AI as a “super cycle” reshaping how software is delivered and consumed. Notion will not pursue large language model infrastructure but will instead concentrate on the application layer. The firm sees this as a way to “massively increase” the size of its target market.
Historically, Notion has built its reputation around SaaS, fintech, and cloud ventures. With Growth Opps III, these will evolve into AI-infused models, while new verticals expand its scope.
Investments Already Underway
Notion Capital has already begun deploying capital from the new fund. Deals include Upvest, a stock trading API from its portfolio, and external companies such as Kraken, a builder of dual-use unmanned surface vessels, and Nelly, which develops financial products for the medical sector.
To maintain objectivity, growth deals will be handled by a dedicated team of fund partners. These partners are also tasked with sourcing new growth-stage opportunities outside the existing portfolio.
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New Partners and Growth Strategy
Growth Opps III introduces new leadership within Notion Capital. Partner Stephanie Opdam will drive the growth strategy alongside Jessica “Jess” Bartos, formerly a principal at Salesforce Ventures. Bartos, a U.S. national, is the firm’s first external partner hire.
Chandler said external expertise was essential. “Because this was a new strategy, we felt we could benefit from outside experience at the growth stage,” he noted.
The firm’s collaborative approach to follow-on funding reflects its emphasis on building long-term relationships with founders. Chandler stressed that Notion has multiple “touch points” with companies over the years, supported by an active platform team and flexible check sizes.
European Capital Environment Changing
Europe has long struggled with a shortage of institutional capital flowing into venture funds, particularly from pension schemes. However, reforms like France’s Tibi initiative and the UK’s Mansion House Accord are beginning to create incentives for long-term capital mobilisation.
Although these shifts did not directly affect Growth Opps III’s fundraising, Chandler said the outlook is promising. “The signs are extremely positive, and that’s great for addressing the gaps in growth capital we face in Europe,” he said.
A Euro-Denominated, Luxembourg-Based Fund
Despite its British roots, Notion Capital’s latest fund is denominated in euros and domiciled in Luxembourg. The firm said this structure reflects its pan-European ambitions and makes it less dependent on UK regulation.
To raise the fund, Notion leaned on established relationships with limited partners from across Europe, the UK, MENA, and the United States. Around 85% of its capital came from institutional investors, showing a broad and geographically diverse support base.
This new vehicle also brings Notion Capital’s total assets under management to more than $1 billion.
Building on a Strong Track Record
Since its founding, Notion Capital has invested in over 150 companies, including Currencycloud, GoCardless, Mews, Paddle, and Quantum Systems. Some of these have exited, while others remain poised to become industry leaders in the years ahead.
Chandler argued that this track record provides Notion with a competitive advantage in the growth stage. Unlike many dedicated growth funds, Notion can leverage long-standing relationships with founders built during early stages.
“Our real competitive advantage in this growth strategy is leveraging the reach we have in our early-stage strategy,” Chandler said. “Most growth funds don’t have that.”
Looking Ahead for European Growth Capital
With Growth Opps III, Notion Capital is positioning itself as a key player in Europe’s evolving venture landscape. Its strategy blends continuity with expansion: continuing to back SaaS, fintech, and cloud startups, while adding AI-driven applications, defence, and logistics.
The firm expects to make about a dozen investments from the new fund. By offering both capital and continuity, it aims to support Europe’s most ambitious founders as they scale into global champions.
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