Lakestar Raises Continuation Fund to Extend Venture Bets

Lakestar, a European venture capital firm, has raised a $265 million continuation fund. This allows the firm to retain some of its portfolio companies for a more extended period while attracting new investors. Lakestar is known for its investments in successful startups like Spotify and Revolut. Continuation funds are becoming increasingly popular in the venture capital industry, as they enable firms to hold onto promising companies for longer and provide an opportunity for existing investors to cash out while new ones come in. This move by Lakestar suggests the firm believes in the long-term potential of some of its portfolio companies and is willing to further invest in their growth. The $265 million raised will be used to provide additional capital to selected Lakestar portfolio companies, allowing them to continue scaling and potentially achieve greater success. This strategy aims to maximize the value of these investments for both Lakestar and its investors.