An investment fund has been launched with €6 million reserved for backing internet and mobile start-ups in Europe.

An investment fund has been launched with €6 million (£5.5 million) reserved for backing internet and mobile start-ups in Europe.

Berlin-based Team Europe Ventures will invest up to €500,000 in each company it backs, and expects to fund four or five companies each year, primarily in Europe.

Pawel Chudzinski, a partner at Team Europe, says there is a gap in the area of seed investment.

He adds, ‘For example, in Germany there are only very few angel investors who invest six-figure amounts. On the other hand, business angel consortia have various drawbacks, [for example] the problem that none of the investors ever feels wholly responsible.’

Kolja Hebenstreit, another partner at Team Europe Ventures, says the firm will invest in businesses that could ‘succeed without us, but will be quicker, larger, nicer with us’.

Investors in the fund include a number of German internet entrepreneurs and business angels.