Rocket Internet Fund Gets $1B To Invest In Startups

Big news from German startup investment company Rocket Internet suggests it plans to come back strong in 2017.

Rocket Internet just recently closed a new $1 billion venture fund it will use for investing in early-stage and growth internet startups. Called Rocket Internet Capital Partners (RICP), the fund is now the largest fund of its kind in Europe, the company said in a press release.

Oliver Samwer, CEO of Rocket Internet, was quoted as saying, “RICP, having reached the hard cap of 1 billion [U.S. dollars], shows the strong interest of leading investors, who share the enthusiasm for the attractive investment opportunity RICP presents.”

According to Rocket Internet, the companies that RICP will look to fund are startups focusing on developing in the software, eCommerce, FinTech, marketplace and travel sectors.

Rocket Internet said the fund was backed by a diverse group of investors worldwide, including financial institutions, pension funds, asset managers, foundations and high-net-worth individuals.

The company reported that it contributed 14 percent of the funds itself with the outside investors contributing the remaining 86 percent. Rocket Internet said that Goldman Sachs International acted as the placement agent for the RICP.

Rocket Internet’s new fund indicates the company is off to a bold start in 2017 after shedding businesses, losing senior managers and halving the valuation of Global Fashion Group in the first half of 2016. There were some signs of worry for Rocket Internet last year, as the company faced mounting pressure to show that its investments were paying off.

Back then, the company forecast that three of its top online startups should break even by the end of 2017 and that it intended to list at least one in the next 18 months. With this new fund, Rocket Internet has at the least indicated to cynics that the company still had the ability to attract some hefty cash injections from outside investors.