20VC, a London-based venture capital firm led by Harry Stebbings, has successfully raised its third fund, totaling $400 million, marking a significant milestone in its growth.

This new fund represents a substantial increase from the firm's previous $140 million fund raised in June 2021, reflecting strong performance and investor confidence.

Notable investors in the new fund include the Massachusetts Institute of Technology and Thrive Capital's Josh Kushner, who bring both capital and valuable expertise.

Additionally, around 40 tech entrepreneurs, including founders from successful companies like Canva, Atlassian, and Deliveroo, have also invested in the fund.

The fund will allocate $125 million for seed investments and $275 million for Series A funding, targeting promising startups primarily in Europe.

The primary focus of this fund is to support European startups, aiming to counter the narrative that they lag behind their U.S. counterparts.

As 20VC begins deploying its new fund, its ability to navigate the AI landscape and identify opportunities in less hyped sectors will be crucial for long-term success.

Harry Stebbings expressed that the success of the fundraising reflects investor confidence in their model and emphasizes the need for hard work ahead.

Stebbings's podcast, also named 20VC, has achieved over 150 million downloads, highlighting its popularity and influence in the venture capital space.

Stebbings is still actively investing from the previous $140 million fund, which was raised in approximately four weeks.

Overall, 20VC's rise represents both a challenge and an opportunity for the European VC ecosystem, potentially inspiring innovative investment approaches.

Reflecting on past investments, Stebbings notes the challenges of consumer tech ventures and emphasizes the importance of focusing on less flashy, yet more stable companies.