Newton Venture Program CEO Anu Adebajo on Europe’s ‘zombie funds’

2026-06-11 · Source: Sifted · Field: Finance & Economics — Capital Markets & Investment Management, Entrepreneurship & Start-ups, Economic Analysis & Policy · Depth: Intermediate, extended

Summary

Anu Adebajo, CEO of the Newton Venture Program, discussed the European venture capital ecosystem, highlighting the prevalence of "zombie funds" and the evolving demands of Limited Partners (LPs). Adebajo, who previously deployed over £365 million as an LP and led Atomico's fund of funds strategy, now heads Newton, an educational program launched in 2020 by Phoenix Court and London Business School. Newton trains new VC talent through its fellowship (30 per cohort) and online fundamentals (65 per cohort, twice yearly), boasting over 800 global alumni. She noted LPs are primarily seeking Distributed Paid-in Capital (DPI) amidst a tumultuous market where many institutional LPs have ceased operations. Adebajo also expressed concern over a re-emerging "boys' club mentality" and the need for VC to reinvent itself by embracing true risk-taking. Newton plans to launch a "Newton Fellows fund" to back alumni's fund theses, aiming for next year, noting that selecting for excellence naturally yields over 80% diversity from overlooked backgrounds. She foresees a bifurcation in future VC firms: large mega-funds and smaller, innovative solo GPs.

Key takeaway

For European venture capital firms and LPs navigating a challenging market, you must prioritize demonstrable Distributed Paid-in Capital (DPI) and actively seek out truly innovative, risk-taking managers. Avoid perpetuating "zombie funds" that lack performance, as this stifles ecosystem health and capital flow. Focus on building diverse teams and strategies that challenge the "boys' club mentality" to uncover overlooked opportunities and drive superior returns. Consider supporting emerging managers and smaller, agile funds that are forced to innovate.

Key insights

Europe's VC ecosystem must prioritize performance and diverse, risk-taking talent to overcome "zombie funds" and traditional biases.

Principles

• LPs demand Distributed Paid-in Capital (DPI).
• Emerging managers show high performance variance.
• VC success requires true risk-taking.

Method

Fund selection involves assessing track record (fund, operational, angel), team dynamics, timely strategy, appropriate fund size, and an intangible "X factor" for future performance.

In practice

• Explore solo GP or small fund models.
• Seek sponsorships for platform work.
• Prioritize emotional intelligence in hiring.

Topics

• Venture Capital
• LP Investment
• Fund of Funds
• Newton Venture Program
• European VC Ecosystem
• Emerging Managers
• DPI

Best for: Investor, Entrepreneur, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.