Kreos Capital

Kreos provides non-dilutive debt financing rather than equity. The firm does not take board seats or ownership stakes as standard practice — it structures senior secured loans from €1 million to €30 million, allowing founders to retain control and cap-table flexibility. This debt-only mandate distinguishes it from both venture capital firms and generalist private credit funds.

Managing partners Mårten Vading and Arun Mehra co-lead the investment committee. Both are co-founders of the firm and have been making credit decisions together since 1998. The partnership completed a management buyout of external investor stakes in 2022, making the firm fully partner-owned and operated.

Kreos targets late-stage, venture-backed growth companies with demonstrated product-market fit and existing investor syndicates. Portfolio names have included Oxford Nanopore Technologies, Pipedrive, and Glovo. The firm focuses on capital-efficient sectors — enterprise software, digital health, fintech, and mobility — where recurring revenue models support debt service.

Kreos does not invest in venture capital funds. The firm originates and underwrites all loans directly, structuring each facility to match the borrower's milestone schedule — often through tranched drawdowns tied to revenue or product development goals.

Kreos invests across the UK, continental Europe, Israel, and selectively in the United States. Its offices in London, Paris, Menlo Park, and Moscow support origination in these markets. The firm has historically been most active in the UK and Western Europe, with Israel emerging as a significant secondary geography.

Kreos typically lends alongside the borrower's existing venture capital syndicate rather than co-investing alongside other lenders. The firm operates as the sole senior secured creditor in most transactions, though it may participate in club deals for larger facilities exceeding its single-name concentration limits.

Kreos generally does not take equity warrants as a standard loan term, which is a structural differentiator from many US-style venture debt providers. The firm's returns come primarily from interest income and arrangement fees rather than equity upside, aligning incentives with founders who want to minimize dilution.