DTCP Closes First Phase Of ‘Growth Equity III Fund’ With $300M

European investment management firm Digital Transformation Capital Partner (DTCP) has closed the first phase of a $300 million growth fund targeted toward financing enterprise software startups either in their early growth or growth stage.

Notably, this is the third fund dubbed ‘Growth Equity III Fund’ that the investment firm is raising. The Fund was first launched in March 2022 with investments from both new and old investors. 

So far, the investment firm has targeted startups that are focused on Web3.0, Artificial Intelligence (AI), and financial technology in Europe which it intends to distribute the secured funds.

The new Equity Fund III will focus its investments in “cloud-based enterprise software and business Software-as-a-Service (SaaS) companies in the fields of cybersecurity, web3, AI, fintech, vertical SaaS solutions as well as IT applications and cloud infrastructure software.”

Cumulatively, DTCP has raised over $1 billion in funding rounds since its inception in 2015. Now, it has over $2.3 billion in assets under management (AUM) with over 70 investments. The firm’s focus has always been growth equity and digital infrastructure. According to DTCP, it still plans to keep raising capital to fund enterprise software companies. 

DTCP to Onboard More Investors

Presently, the Hamburg-based Venture Capital has about 25 equity investments that it is scrutinizing in the range of $20 million to $25 million to generate funds for this round. They will be part of Series B to D funding rounds or late-stage funding round.

Two major investors in this round are German Telecommunication company Deutsche Telekom and Japanese multinational company SoftBank Group International. Other participants in the Fund are an institutional, pension fund, corporate, and family office investors.

DTCP plans to finally close the Growth Equity III Fund round in March 2023 after it should have secured a total of $500 million or almost $600 million.

Once concluded, the VC company will amplify its investments in Europe, Tel Aviv (Israel), and the United States with a defensible market position and technological advantage.

Many such fundraisers have been happening in the crypto industry recently. Web3.0 compliance company Satschel secured $5.2 million a few days ago in a round led by Brand Foundry Ventures. Colorful non-fungible token (NFT) maker Doodles also closed a round where it generated $54 million and raised its valuation to $704 million.