Skype cofounders Niklas Zennstrom and Janus Friis (who also started Kazaa and Joost) have raised $165 million for their second venture fund which will mainly back Europe-based high growth tech startups. Zennstrom and Friis had initially aimed to raise $266 million a year ago—but tell the Financial Times “we think we have exactly the right amount of money.”

Zennstrom and Friis started their investment comapny—Atomico Ventures—four years ago. Over the last year, it has backed several startups, including mobile gaming firm Zattikka, music service Rdio, and social games site Playfire.

In their announcement, they loosely lay out the criteria for how they will use the new cash. Zennstrom: “We will seek to invest in exceptional entrepreneurs who are building exceptional businesses.  We will target companies that we believe have the potential to generate significant growth, transform their industries, and deliver strong returns.”

• Skype Co-Founders Are Launching Venture Fund, Looking To Raise $266 Million