European Venture Firm DTCP Closes First Growth Equity III Fund for $300M

On Tuesday, September 20, European venture firm DTCP announced that it has successfully completed the first closing of its Growth Equity III Fund at $300 million.

Launched back in March 2020, the fund has raised capital from new as well as existing investors. This includes giants like SoftBank Group International and Deutsche Telekom. It also includes other investors like corporates, institutions, pension funds, and family office investors. DTCP said that they will continue to raise further capital for the Fund and seeks to close the fundraising by 2023.

The Growth Equity III fund from DTCP will invest in cloud-based enterprise software as well as business SaaS companies operating in the field of Web3, cybersecurity, Artificial Intelligence, FinTech, etc. The fund is currently targeting nearly 25 equity investments in the range of $20-$25 million. These investments will happen in businesses that are typically in the early growth stage. Thomas Preuss, the Managing Partner at DTCP Growth, said:

“Our GE III fund is the continuation of a proven strategy, and we would like to thank our existing and new investors for their support and trust. With one of the largest specialist teams focusing on cloud-based enterprise software in Europe, we’re excited about the continued opportunity to back outstanding entrepreneurs and category leaders in the fast-growing cloud-based enterprise software ecosystem and to create attractive co-investment opportunities for our investors.”

DTCP Growth Fund Investments

Over the last many years, DTCP has been investing in different companies through its Growth Equity Funds. Its GE I and GE II funds have invested $10 million in 32 companies across Israel, Europe, Asia, and the USA.

Eleven of these companies have been either acquired or gone public. They have realized higher multiples and have returned more than 50 percent of the capital.

The GE Fund III has closed its first investment with a $15-million investment into Cognigy.ai. this is a conversation AI and automation platform allowing enterprises to communicate effectively with customers and employees 24/7. Jack Young, the Managing Partner at DTCP Growth, says:

“The current market environment and the recent valuation reset offer unique opportunities to invest in great companies and the category leaders within theenterprise software market. We will be patient and disciplined in deploying the Fund carefully balancing risks and rewards. Using our automated proprietary benchmark system and deep industry knowledge, we can continue to identify leaders in our target markets and help them scale to reach their fullpotential.”

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