London-based venture fund and venture builder Digital Horizon has announced the launch of its second fund with a target volume of $200 million. The firm specifically targets European, American, and Israeli fintech and enterprise software startups, and invests across all stages of the startup cycle.
Founded in 2018 and launched in 2019, Digital Horizon already has an impressive track record, investing in more than 20 companies including Klarna, Monday.com, Ably, and Cuvva and Obligo. By specifically targeting fintech, a sector that saw $98 billion in investments in Q1 of 2021, and corporate software, an area Garnter says will reach a spend of $699 billion in 2022, Digital Horizon isn’t taking any chances and going all-in across the board. Thus far, the firm reports a 40% return on investment per annum to investors.
And it’s not just cash that the firm is handing out. As a builder themselves, they offer a unique combination. Having built Factorin, a blockchain platform for trade finance, Aximetria, a cryptocurrency app with a Swiss license, and open banking platform Apibank from scratch, they know firsthand the struggles entrepreneurs face.
“We are delighted to launch our second fund, following an oversubscribed first fund,” commented Digital Horizon’s Alan Vaksman. “In our first fund we moved away from the traditional venture approach and invested in companies at various stages from Round A to D. Investing in early-stage startups can mean double-digit multiples, but this is “long” money, locked in for seven or more years. In later stage investments, the return on investment occurs in just one or two years, but growth slows to an average of 2-4x. A multi-stage fund provides high returns while enabling the investors shorter investment horizon and liquidity. Our new fund will adopt the same approach.”