DTCP closes $300m fund for enterprise software startups

DTCP fund

Digital Transformation Capital Partners (DTCP) has closed a $300m (£263m) raise 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 focus and will invest in UK startups if the “right opportunities come long”, a spokesperson told UKTN.

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

It is targeting early growth or scaleup stage companies – 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 $15m extension to Cognigy’s Series B funding round.

“The current market environment and the recent valuation reset offer unique opportunities to invest in great companies and the category leaders within the enterprise software market, “ said Jack Young, managing partner at DTCP Growth. “We will be patient and disciplined in deploying the Fund carefully balancing risks and rewards.”

Founded in 2015 as the venture arm of Deutsche Telekom, DTCP is now an independent firm with the German telco remaining an investor. According to Dealroom data, it has invested in 11 UK startups.

Previous investments in its portfolio include DocuSign and Arctic Wolf. It has completed successful exits with the likes of Auth0 and AppNexus.

SoftBank’s anchor investment in the DTCP fund is the latest sign of the tech investor changing its strategy. In August it suffered record losses as investments made by its Vision Fund took a hammering amid tumbling tech valuations.

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