Venture capital firm Lakestar, best known for early backing of companies such as Spotify and Revolut, has announced that it will cease raising new general-venture funds from outside investors and instead will focus on increasing the value of its current investments. The firm’s founder, Klaus Hommels, disclosed in a letter to limited partners that “going forward both Lakestar’s and my focus will be on maximizing the potential of the existing portfolio and we will not raise any new generalist venture funds as we have in the past”.
Founded in 2012 with offices in Berlin, London and Zurich, Lakestar has raised more than 2 billion euros to date. The announcement comes as the firm is on track to complete its current raise of approximately US$ 500 million by the end of this year, after which it will step back from seeking further external capital. Exceptions include a specialized “resilience” vehicle focused on defence technology, some of which remains open to outside investment.
The strategic shift is driven by a desire to gain more flexibility and reduce the constraints of external fund-raising cycles. By deploying its own capital and backing newer initiatives internally (including seeding ventures launched by members of its team), Lakestar aims to accelerate decision-making and tilt its model from growth-fund gatherer to portfolio optimizer.
This move also reflects broader structural changes in European venture investing. Lakestar is simultaneously doubling-down on defence and deep technology sectors, domains where Hommels has publicly committed to investing more than €100 million of his own funds. He has argued that Europe must build its own tech sovereignty and capacity in the face of global strategic rivalry, noting the shift in investor sentiment toward “dual-use” technologies with both civil and military applications.
While Lakestar’s earlier successes such as backing Revolut show its appetite for disruptive financial services, the pivot to internal capital and defence tech may mean fewer large-scale new fund commitments to consumer fintech rounds from this particular firm. It suggests a broader recalibration: top-tier VC players in Europe may opt for continuation vehicles and focused platforms instead of relying solely on traditional fund-raising. As Lakestar moves into “maintenance mode” for its existing deals while selectively backing new ventures with internal funding, the eco-system may see fewer mega-fund launches but more flexible, bespoke investment vehicles.
