EQT Ventures & Growth
Growth fund fucked up massively during 21-22 valuation bubble, decided to focus on more boring deals, then ended up doing Lovable, Harvey, and every other hype AI deal under the sun
Ventures fund raised $1bn and then just.. got distracted with random shit like climate and then somehow decided to cut a check into anything they could squeeze into (1X, Strawberry browser - seriously?)
They've sort-of combined both strategies but also not?
They moved a few people from Europe to US, and a handful of Associates in London were also pushed out / left recently.
They also seem to have other strategies within ventures & growth including life sciences, future fund etc.
And now they got a €5bn 'Scaleup fund' to throw around Europe
Wtf exactly is going on?
Based on the most helpful WSO content, here's a breakdown of the situation with EQT Ventures and Growth:
Valuation Bubble Fallout (2021-2022):
EQT Growth faced significant challenges during the valuation bubble, leading to a shift in strategy. Initially, they aimed to focus on "boring" deals, but they quickly pivoted back to high-profile, hype-driven investments like Lovable and Harvey, particularly in the AI space.
Ventures Fund Missteps:
The Ventures fund raised $1 billion but appeared to lack a cohesive strategy. They ventured into diverse areas like climate tech and made questionable investments (e.g., 1X, Strawberry browser), which diluted their focus.
Blurring of Strategies:
There seems to be a lack of clarity between their Ventures and Growth strategies. While they’ve attempted to merge or align these approaches, the execution appears inconsistent.
Geographic Shifts and Team Changes:
Diversified Strategies:
Beyond Ventures and Growth, EQT has introduced other strategies, including life sciences and the "Future Fund." This diversification could be an attempt to hedge risks or explore new opportunities, but it also adds to the perception of a scattered focus.
€5 Billion Scaleup Fund:
The launch of the €5 billion Scaleup fund for Europe suggests a renewed emphasis on growth-stage investments within the region. This could be a move to consolidate their position in the European market and regain credibility after recent missteps.
In summary, EQT seems to be grappling with strategic identity issues, balancing between hype-driven investments and more stable, focused approaches. The internal restructuring and new fund launches indicate they’re trying to recalibrate, but the lack of a clear, unified direction raises questions about their long-term strategy.
Sources: What’s the mega fund cutoff?, Which investing strategy will be most challenged this decade (‘20 through ‘29)?, Finding the next Thoma / Vista?, Clarity on the Growth Equity Landscape, SoftBank Vision Fund / GIC / Temasek
Bumping
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