According to EU-Startups, London’s Expedition Growth Capital has raised a €323 million ($375 million) third fund, which was oversubscribed and closed in just four months. The firm, founded in 2020, will continue its focus on partnering with bootstrapped European software companies, with more than half of the fund’s commitments coming from US investors. Typical initial investments will range from €8.6 million to €21.5 million. Founder Oliver Thomas stated the fund targets “domain-expert, bootstrapped founders” building AI and software companies, and the firm’s portfolio already includes 17 companies from nine European countries. Expedition uses a proprietary AI-powered sourcing platform to find deals, and two of its last three investments were identified this way.
The Bootstrap Bet
Here’s the thing: the European startup scene is absolutely dominated by the venture capital narrative. It’s all about seed rounds, Series A, and chasing hyper-growth fueled by investor cash. Expedition is making a very deliberate, and frankly interesting, bet on the opposite path. They’re looking for companies that have already reached at least €4.3 million in annual recurring revenue without taking institutional VC money.
That’s a specific founder profile. It usually means they’ve grown through actual customer revenue, not promises on a pitch deck. They’re likely deeply embedded in a specific industry—what Expedition calls “domain-expert” founders. The trade-off? These companies might not have the blistering, headline-grabbing growth of a VC darling. But the argument is they’re more durable, more efficient, and have fundamentally sounder unit economics. Expedition’s thesis is that these are ideal candidates for a slug of growth equity to systematically scale, especially into the North American market, which most of their portfolio is already doing.
Filling The Scale Gap
Now, look at the funding activity the article itself cites from early 2025. You’ve got Bandits raising €400k, Uxia with €1 million, Spiich Labs at €600k. Even the larger ones, like Model ML’s €65 million, are still early-stage scaling rounds. The article tallies about €91 million across these deals. So Expedition’s single €323 million fund is, in one chunk, more than triple that entire reported early-stage momentum.
That’s the real story. There’s a ton of seed and Series A money floating around for AI and software in Europe right now. But where’s the capital for the proven, revenue-generating company that’s past product-market fit and needs €10-20 million to truly dominate its vertical? That seems to be the scaling gap Expedition is aiming to fill. It’s not about finding the next unicorn; it’s about systematically turning already-successful, capital-efficient businesses into much larger entities.
The AI Double-Play
And there’s a clever double layer to their AI strategy, which I think is the most technically interesting part. First, they’re investing in companies that are “fusing the power of software and AI” for specific industries—think AI for accounts payable or for manufacturing design workflows. Basically, they’re betting on applied AI, not foundational models.
But second, they’re using their own “proprietary AI-powered sourcing platform” to find these very companies. In a market where every VC claims proprietary deal flow, using AI to sniff out successful bootstrapped companies that aren’t on the conference circuit is a smart operational move. If two of your last three deals came from that platform, it’s clearly more than just a marketing slide. It speaks to the challenge of finding these “off-the-grid” gems that aren’t actively fundraising.
What It Means For Founders
For a certain type of European founder, this is significant. You can build to millions in revenue on your own terms, and now there’s a dedicated, well-capitalized firm whose entire pitch is to partner with you because of that journey, not in spite of it. Their hands-on support through the Expedition Operations Group for go-to-market and hiring is a classic growth equity playbook, but one that’s been rare in Europe with this specific bootstrap-focused lens.
So, is this a sign of maturity in the European tech ecosystem? Probably. It shows there’s enough density of successful, bootstrapped software companies to build a thesis and a massive fund around. And it shows US investors are paying attention. The big question will be if Expedition can consistently find enough of these high-quality, under-the-radar companies to deploy €323 million effectively. If they can, they might just prove that the road less traveled by venture capital is a pretty profitable path after all. You can learn more about their approach at their website.
