Station 12 wants to back the Series A and B funding rounds of European media tech startups. To do that, the growth capital fund is raising $250 million (£150 million) for its investment plans, according to TechCrunch.

Patrick Bradley, the head of the company, explained: "In the U.S. you have deep pockets with capital available from startup to mid-stage rounds. But in Europe, there is a shortage of capital from Series A onwards. You have a cohort of young businesses coming up that will reach Round A or B, and want to raise in the £5 million-£15 million range, but there is a shortage of that in Europe."

Station 12 is known for backing companies such as Lionhead Studios, which Microsoft acquired, and Cream, which was sold to Live Nation. Property Network and Two Way Media are included in the fund's portfolio of companies, the report detailed.

As of now, Station 12 is laying the foundations of the fundraising which will kick off in early summer. Bradley said the growth capital fund aims to be a regular advisor to the companies that it will invest in, TechCrunch reported.