DTCP, an independent investment management firm focused on digitization and automation, has closed its DTCP Growth Equity III Fund and an initial closing of its additional B2B early stage investment fund at a total amount of $450m. The fundraising follows predecessors DTCP Growth Equity Funds, GE I (launched in 2015) and GE II (launched in 2018).

The Fund, launched in March 2022, has successfully raised capital from new and existing institutional investors, pension funds, corporations, and family offices, in addition to Deutsche Telekom who served as the anchor investor. Despite a challenging market environment, the fundraising efforts have been notably successful, underscoring the strength of the proprietary data-driven investment strategy and DTCP’s compelling value proposition.

DTCP uses DTCP Flightpath, a proprietary data driven software that analyses the financial data of any SaaS company and benchmarks it against peers yielding a unique KPI fingerprint for each firm. The tool serves as a guiding compass for founders and CEOs of start-ups, offering insights into the vitality and future paths of their businesses.

The fund has already made four investments into Cognigy.AI, a global leader in AI-driven customer experience solutions, Cohere, a leading Generative AI for business platforms, Quantum Systems, a specialist in the development, design, and production of advanced AI multi-sensor unmanned aerial systems that collect aerial intelligence for the professional users; and anecdotes, a leader in governance, risk management and compliance solutions. In line with the investment strategy and DTCP Growth’s proven expertise, these have a focus on AI and on automation.

Thomas Preuss, Managing Partner at DTCP Growth, commented: “The successful closing of GE III is a resounding affirmation of our established and proven data-driven and value additive investment approach. At DTCP Growth, our role extends beyond mere investment; we are allies and advocates for talented enterprise SaaS teams. Despite the prevailing market challenges, we have received commitments from institutional investors, pension funds, corporate investors, and family offices.

“This underscores the growing acknowledgment that the B2B SaaS industry provides a wealth of exceptional entrepreneurial talent. DTCP Growth’s adeptness in harnessing investment opportunities across the entire ecosystem as a sector-specialist investor in Europe, the US and Israel, and in bolstering the technological advancement, has resonated with both new and existing Limited Partners, fueling enthusiasm for our next fund iterations.”

The fund is targeting approximately 15 to 20 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. The predecessor growth equity funds GE I and GE II have invested c.$408 million into 33 enterprise software companies across Europe, Israel, the US and Asia – 14 of which have been acquired or gone public, including: LeanIX, Signavio, Pipedrive, Auth0, realizing high multiples and already having returned over 100% of the capital to its LPs, with abundant further value in the residual portfolio.