DTCP Closes $300M Fund for Enterprise Software Startups

Digital Transformation Capital Partners (DTCP) has closed a $300m (£263m) fundraising round for its latest equity fund, with Japanese conglomerate SoftBank taking a major stake as a limited partner.

The fund, which launched in March this year, has a global reach and will invest in UK startups if the “right opportunities arise”, a spokesperson said. UKTN.

It is DTCP’s third fund – officially known as the Growth Equity III Fund – and seeks to make approximately 25 equity investments of $20-25 million in enterprise software and enterprise software companies. cloud-based business as a service (SaaS).

It targets companies in the growth or scaling stage – think series B to D – operating in cybersecurity web3, AI, fintech and IT applications and cloud infrastructure software.

In February, the fund made its first investment in the form of a $15 million extension to Cognigy’s Series B funding round.

“The current market environment and recent valuation reset provide unique opportunities to invest in large companies and category leaders in the enterprise software market,” said Jack Young, Managing Partner at DTCP Growth. . “We will be patient and disciplined in rolling out the Fund, carefully balancing risk and reward.”

Founded in 2015 as a venture capital arm of Deutsche Telekom, DTCP is now an independent company, with the German telecom operator remaining an investor. According to data from Dealroom, he has invested in 11 UK startups.

Previous investments in its portfolio include DocuSign and Arctic Wolf. It has achieved successful releases with Auth0 and AppNexus.

SoftBank’s anchor investment in the DTCP fund is the latest sign of the tech investor’s shift in strategy. In August, he suffered record losses as investments made by his Vision Fund suffered a hammer blow amid falling tech valuations.

DTCP opened an office in London last year to strengthen its operations in Hamburg, Luxembourg, San Francisco, Seoul and Tel Aviv.