Hamburg-based VC Digital Transformation Capital Partners (DTCP) has announced the first closing of its growth equity III fund at $300 million. It plans to continue to raise significant capital for the fund and aims to close fundraising in 2023.
The fund is targeting about 25 equity investments in the range of $20 to $25 million for businesses in early growth or growth stage, typically as part of a Series B to D or late-stage funding round. It will focus on category leaders in Europe, Israel, and the U.S. with a defensible market position and technological advantage.
GE III is investing in cloud-based enterprise software and business SaaS companies with a focus on cybersecurity, web3, AI, fintech, vertical SaaS solutions as well as IT applications and cloud infrastructure software. The fund has closed its first deal with a $15 million investment into Dusseldorf-based Cognigy.ai as part of its Series B funding round.
Launched in March 2022, the fund has raised capital from new and existing investors including Deutsche Telekom and SoftBank Group International, alongside other institutional, pension fund, corporate, and family office investors.
Thomas Preuss, 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.”
Jack Young, managing partner at DTCP Growth, added: “The current market environment and the recent valuation reset offer unique opportunities to invest in great companies and the category leaders within the enterprise software market. We will be patient in deploying the fund carefully balancing risks and rewards.”
The predecessor growth equity funds, GE I (launched in 2015 and GE II (launched in 2018) have invested $410 million into 32 enterprise software companies across Europe, Israel, U.S. and Asia – 11 of which have been acquired or gone public, including Auth0, Fastly, Signavio, and Guardicore.