Lakestar, a prominent European venture capital firm known for early investments in Spotify and Revolut, has successfully closed a $265 million follow-on fund. The fund, which was oversubscribed, allows Lakestar to consolidate equity from four existing funds, extending its investment in portfolio companies while offering liquidity to limited partners seeking exits. Key investors include Lexington Partners, Industry Ventures, and Performance Equity Management. Founder Klaus Hommels highlighted the fund as one of the largest of its kind in the European venture capital landscape.