With venture capital flooding into European startups, some local VCs have hit on a formula to maximize profits: break off from older firms and go it alone.
In the past eight months, three VCs have set up shop, each with backing from U.S. investors looking for a piece of the Continent’s startup action. Berlin’s BlueYard Capital, formed by two veterans who left Earlybird Venture Capital last year, has raised $120 million. Mosaic Ventures, formed by three London-based venture capitalists who’ve worked at firms including Accel Partners and Yahoo Inc., have started a $140 million fund. Felix Capital, founded by Frenchman Frederic Court, formerly of Advent Venture Partners, has raised $120 million to invest in “creative” Web companies in food and fashion.