Venture capital firm Draper Esprit has today announced it will acquire a larger stake in European fund Earlybird Digital West, with the intention of raising £100m through a fresh share placing to finance the move.
The London-listed tech investor first partnered with Earlybird in July last year, committing up to £76m into the German firm's Earlybird Fund VI until 2022.
It has today conditionally agreed to take a 27 per cent stake in Earlybird for approximately £55m, and a separate five per cent interest in its Digital East Fund for £16m.
As a result, Draper will hold several new tech firms within its portfolio, including so-called unicorn artificial intelligence startup Uipath.
Draper said the deal hinges on the £100m share placing being admitted to trading on London's Alternative Investment Market and its European equivalent, which was also launched today.
Some of the money raised will go back into Earlybird's funds to invest in early and growth-stage European tech firms.