DTCP funding news – Hamburg-based DTCP Secures €420 Million of its DTCP Growth Equity III Fund

The fundraising efforts expand upon the successful history of the DTCP Growth Equity Funds, GE I (established in 2015) and GE II (established in 2018).

The fund is aiming to make roughly 15–20 equity investments for companies in the early development or growth stage, often as a part of a Series B to D or late-stage capital round, in the region of $20–25 million.

Approximately $408 million was invested by the former growth equity funds GE I and GE II in 33 enterprise software companies located in Europe, Israel, the US, and Asia. Of these, 14 have been acquired or gone public, including LeanIX, Signavio, Pipedrive, and Auth0. These companies have realised significant multiples and have already returned over 100% of their capital to their investors, with ample potential for further value in the residual portfolio.

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Since its March 2022 launch, the Fund has raised money from enterprises, family offices, pension funds, new and existing institutional investors, and Deutsche Telekom, who acted as the anchor investor.

The fundraising efforts have been remarkably effective in a difficult market environment, demonstrating the potency of DTCP's unique data-driven investment strategy and its attractive value offer.

It is the pioneer of a unique, quantitative-first approach. utilising DTCP Flightpath, a data-driven, proprietary programme that creates a unique KPI fingerprint for each company by benchmarking and analysing its financial data against those of its peers.

For entrepreneurs and CEOs of start-ups, the tool acts as a compass, providing information regarding the health and potential directions of their companies. In addition, it functions as a quantifiable and objective guide that helps with well-informed internal investment decisions.

The fund has already invested in Cognigy four times. Quantum Systems is a specialist in the development, design, and production of advanced AI multi-sensor unmanned aerial systems that gather aerial intelligence for professional users; anecdotes is a leader in governance, risk management, and compliance solutions; AI is a global leader in AI-driven customer experience solutions; and Cohere is a leading Generative AI for business platforms. These emphasise automation and artificial intelligence in keeping with the investment strategy and the track record of DTCP Growth.

Thomas Preuss, Managing Partner at DTCP Growth, said: “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.”

About DTCP

DTCP is a digital infrastructure and growth equity investment management company. Since its founding in 2015, the company has raised more than $2.5 billion from institutional and corporate investors, investing in more than 70 businesses.

It's GROWTH makes investments in top infrastructure and enterprise application software providers. DTCP INFRA makes investments in fibre, data centre infrastructure, and mobile access. A committed advisory staff at DTCP helps portfolio firms and corporate sponsors achieve quantifiable synergies.