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New Europe VCs Vow Valley-Size Returns With Small, Targeted Bets

  • Three firms raised combined $380 million, with U.S. backing
  • They're targeting fertile startup scene from London to Paris
Stadtlandschaft an der Oberbaumbrücke Beleuchtete Türme: Stadthaus und Rotes Rathaus, Fernsehturm. (r.) Universal Music # Skyline at 'Oberbaumbrücke'
Photographer: Michael Haddenhorst/ullstein bild via Getty Images

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.