VC firm DN Capital began its fifth fund in the easiest way attainable.
In April 2020, the corporate made its first funding from the automobile into Vienna-based edtech startup GoStudent. A bit greater than a yr later, GoStudent was a unicorn.
The truth that the fund had a unicorn funding earlier than it had even formally closed (the ultimate shut was in the present day) speaks volumes about European tech proper now. “We’re simply beginning to see huge corporations popping out of Europe and it’s fairly thrilling,” says Nenad Marovac, managing accomplice of DN Capital.
The VC — finest recognized for its investments in Auto1 and Shazam — says that it was aiming to lift €200m for the fifth fund, however was overwhelmed by a “tidal wave” of LP curiosity and closed at €300m. It’s already deployed a couple of third of the capital and given the success of GoStudent, is valued at over 3x money invested, Marovac says.
DN Capital’s announcement brings the whole raised by European VCs this yr to €8.6bn amid a surge of LP curiosity in European tech because the area exhibits it might probably create tech successes on par with different world tech ecosystems. Different notable fund closes embody Accel’s shut of a $650m early-stage fund masking Europe and Israel in June; podcaster-VC Harry Stebbings’s two funds totalling $140m; and a $200m seed fund raised by Index.
Are we in 1999?
Marovac says that the agency shouldn’t be fazed by a surge of US investor curiosity in European VC on condition that DN Capital is an earlier-stage investor.
“We do principally sequence A and fairly a little bit of seed. We wish to accomplice with lots of these US companies” together with Bessemer and Sequoia, he says. “We’ll proceed to work with them.”
The latest fund can be used to speculate primarily in software program, fintech, marketplaces and the patron web. DN Capital has made about two-thirds of its investments in Europe up to now and the remaining in North America and manages a complete of $850m throughout all its funds. DN’s final fund, closed in 2018, was €200m.
DN Capital’s present portfolio consists of Spain’s Jobandtalent, which raised €100m from Softbank earlier this yr. The corporate’s exits in Europe embody Shazam, which offered to Apple in 2018, and German on-line used automobile vendor Auto1, which raised almost €2bn earlier this yr in a public itemizing.
“Are we in 1999? I don’t assume so as a result of I feel there are actual revenues and actual traction in these corporations. Is the market sizzling? Sure, it’s sizzling,” says Marovac.
Eleanor Warnock is Sifted’s commissioning editor. She tweets from @misssaxbys