Europe’s shortage of growth capital has become such a persistent problem that some early-stage investors are stepping up to fill the void. London-based Notion Capital is among the firms taking action, closing a fresh $130 million Growth Opps III fund to support scaling startups across the continent.
This latest fund is nearly twice the size of its predecessor and pushes Notion’s assets under management past $1 billion. Unlike its earlier opportunities vehicle, Growth Opps III will not be limited to portfolio companies. It will also target promising ventures beyond its network, marking a major evolution in the firm’s growth-stage strategy.
Filling Europe’s Growth Capital Gap
For years, U.S. venture capital firms often filled Europe’s late-stage funding needs. But with American investors now focusing more on their domestic market, Notion Capital sees a rare opening to establish itself as a European champion. Managing partner Stephen Chandler described this as a chance to close funding gaps while backing sectors tied to sovereignty, defense, supply chain resilience, and the ongoing AI boom.
While Notion won’t dive into the infrastructure layer of AI—such as large language models—it sees enormous potential in application-layer startups. Chandler expects these companies to reshape how software is built and consumed, expanding the firm’s already strong focus on SaaS, cloud, and fintech with AI-driven innovation.
The firm plans to back about a dozen companies. Investments already made include Upvest, a stock trading API from its early-stage portfolio, as well as external deals like Kraken, which develops dual-use unmanned surface vessels, and Nelly, a medtech startup building financial and software products for healthcare providers.
A Stronger Growth Strategy with New Leadership
To ensure discipline in its follow-on approach, Notion has assigned dedicated partners to run the growth strategy. One of them is long-time partner Stephanie Opdam, joined by Jessica “Jess” Bartos, a former principal at Salesforce Ventures and the firm’s first external partner hire. Chandler noted that this addition brings valuable expertise in scaling later-stage companies.
The firm also expects future fundraising to benefit from shifting regulatory incentives across Europe. Initiatives such as France’s Tibi program and the U.K.’s Mansion House Accord are pushing more pension funds to invest in venture capital, potentially increasing the pool of growth capital.
Though headquartered in the U.K., Notion structured this new fund in Luxembourg and denominated it in euros, reflecting its pan-European outlook. The money primarily comes from a geographically diverse base of institutional investors across Europe, the U.K., MENA, and the U.S.
Leveraging Early-Stage Strengths
Despite entering a more competitive growth-stage market, Notion believes its deep early-stage network gives it a unique advantage. Unlike many growth funds that begin building relationships only once companies scale, Notion has nurtured founders for years through its active platform team and flexible investment approach.
This long-term involvement, combined with a portfolio of more than 150 companies—including Currencycloud, GoCardless, Paddle, and Quantum Systems—positions Notion as a trusted growth partner. Even as growth capital availability improves across Europe, its established reputation could make external founders more willing to accept its checks.
With Growth Opps III, Notion Capital is doubling down on its mission: to close Europe’s growth funding gap and support the next generation of global software leaders.
