Another coronavirus-period fundraising success sees Dawn Capital reach €333m Fund IV hard cap

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Another coronavirus-period fundraising success has seen B2B software investment specialist Dawn Capital close its biggest fund to date on its €333m hard cap.

Dawn took just six months to close Fund IV, with 100% of its existing fund investors showing their belief in the firm by re-upping for the latest vehicle.

The firm previously raised £165m for its third fund two years ago, after surpassing its hard cap twice.

Last year it raised $125m for the final close of a business-to-business opportunities fund, which it claims is the biggest of its kind in Europe.

The firm said Dawn IV would pursue the same strategy as its predecessor funds, investing in Series A and B rounds in Europe’s leading B2B software startups, as well as taking part in growth rounds with follow-on funds to successful exits.

Fund IV will focus on Dawn’s core thematic areas of data and analytics, security, fintech and the future of work.

Initial investments will be between $5m and $20m, the firm said. Dawn has invested in nearly 40 companies across 14 European countries that span those four themes to date.

Its previous investment in Mimecast saw the company eventually list on the Nasdaq exchange at a $3.1bn market cap, while its portfolio company iZettle was bought by PayPal for $2.2bn.

Its current portfolio includes unicorns Collibra and Dataiku.

Dawn co-founder and general partner Norman Fiore said, “Innovation thrives on instability.

“System-wide shocks drive change that startups can exploit ruthlessly, while incumbents are incapable of adjusting. Historically, these shocks were either financial, technological or societal.

“In 2020, we’ve had all three at once: technology shock as the cloud came into its own, financial shock which will force society to do more with less, and a fundamental change to the way our working society is organised.

“We can’t wait to see where our entrepreneurs take us as we invest Dawn IV and greatly appreciate the support of all our investors in making this a successful fundraise.”

Haakon Overli, fellow Dawn co-founder and general partner, added, “Dawn has always been a long-term believer in the strength and vast opportunity of European B2B software.

“The fantastic support our investors have shown for Dawn IV reinforces our belief that now really is Europe’s time to build the next generation of category-defining software that will underpin the future of enterprise, work and commerce globally.

“The scope for ambitious and talented European founders, hungry to scale their businesses globally and deliver innovation at scale, is unprecedented.

“We have never been more excited about what we can achieve in partnership with these founders.”

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