London-based Balderton Capital has raised $1.3 billion from investors to back European startups in two new funds, amid difficult market conditions.

The firm, which has previously backed companies such as Revolut and autonomous driving startup Wayve, has raised $615m for its ninth early-stage fund and $685m for its second growth fund. Balderton has recently invested in several AI and machine learning startups, including meeting note-taking platform Supernormal and carbon data provider Sylvera.

Last month, among others, Index Ventures raised $2.3bn for its early-stage and growth funds, while US firm Accel raised $650m in May. However, fundraising in the venture capital sector in Europe is at a low level this year, according to Pitchbook. At the current pace, capital raised this year is likely to match last year's total, which was significantly lower than in the previous four years.