DTCP announces the successful closing of $450 million

DTCP investment firm secures $450 million for its new Growth Equity Fund III and an additional B2B early-stage investment fund

Hamburg, Germany / Menlo Park, USA / Tel Aviv, Israel, June 2024 - DTCP, an independent investment firm focused on digitalization and automation, announces the successful final closing of its DTCP Growth Equity Fund III ("GE III" or "the Fund") and a first closing of an additional B2B early-stage investment fund totaling $450 million. The fundraising builds on the strong track record of predecessor funds DTCP Growth Equity Fund, GE I and GE II, which launched in 2015 and 2018 respectively.

Despite the current market challenges, we have received commitments from institutional investors, pension funds, corporate investors and family offices. This shows the increasing confidence in the innovative strength and sustainable value development in the B2B software industry.

Thomas Preuss, Managing Partner at DTCP Growth

Launched in March 2022, the fund has successfully raised capital from new and existing institutional investors, pension funds, corporates and family offices. Deutsche Telekom also acted as an anchor investor. Despite a difficult market environment, the fundraising was very successful; a result that underlines the quality of DTCP's differentiated, data-driven investment strategy and convincing performance.

Unique methodology and investments

DTCP has developed a unique, quantitatively oriented methodology. Using DTCP Flightpath, a proprietary, data-driven benchmarking software, the financial data of relevant SaaS (Software-as-a-Service) companies is analyzed and compared to create an individual KPI fingerprint for each company. The tool serves as a compass for founders and managing directors of start-ups and provides insights into the dynamics and future growth path of their companies. At the same time, it is an objective and measurable indicator that enables well-founded internal investment decisions.

The successful completion of GE III is a clear confirmation of our established data-driven and performance-driven investment approach.

Thomas Preuss, Managing Partner at DTCP Growth

The GE III fund has already invested in four companies: Cognigy.AI, a global leader in AI-driven customer experience solutions; Cohere, a market leader in generative AI for enterprise platforms; Quantum Systems, a specialist in the development, design and production of unmanned AI multi-sensor aerial systems that collect aerial intelligence data for professional users; and anecdotes, a platform for governance, risk management and compliance solutions. These investments reflect DTCP Growth's investment strategy and proven expertise with a focus on AI and automation.

Future prospects and track record

The fund targets approximately 15 to 20 investments in the $20 to $25 million range for early or late growth stage companies, typically in a Series B to D or late stage financing round. The predecessor funds GE I and GE II have invested approximately $408 million in 33 B2B software companies in Europe, Israel, the US and Asia, 14 of which have already been acquired in M&A transactions or taken public, including: LeanIX, Signavio, Pipedrive, Auth0, Fastly. High profits have been achieved and more than 100% of the capital has already been returned to their investors (LPs), although the existing portfolio continues to have a high valuation.