A top European software investor raises $700 million — defying the venture capital slump

Dawn Capital, a major venture capital firm in Europe specializing in business-to-business software companies, has successfully secured $700 million in funding through two new funds. This move is part of the firm’s commitment to identifying and supporting technology champions within the European region, especially during a period where venture capital funding for tech startups has seen a decline.

Headquartered in London, Dawn Capital stands out as a prominent tech investor in Europe, boasting a diverse portfolio that includes significant investments such as Swedish online payments company iZettle, acquired by PayPal for $2.2 billion in 2018, and Swedish open banking firm Tink, acquired by Visa for 1.8 billion euros ($1.9 billion) in 2022.

Hannah Gubbins, a recently elevated partner at Dawn Capital, explained that raising these new funds during a challenging time for private startup valuations and investor confidence in technology was a difficult endeavor. However, the achievement was made possible through their strong and longstanding relationships with institutional investors that have been cultivated over the years.

Gubbins noted, “Investors are excited to be investing in this market. There’s some of the best companies, some of the best vintages have come out of the dotcom [bubble], out of the global financial crisis. They know that, they sit on the data.”

With the new funds, Dawn Capital plans to invest in 20 companies. The funds, named Dawn V, are divided into two segments: a $620 million early-stage fund targeting Series A and Series B investments, and an $80 million “opportunities” fund intended to support successful companies within Dawn Capital’s portfolio, potentially through exits like initial public offerings or acquisitions at a later stage in their business lifecycle.