Venture capital business unveils $700m in funding for software start-ups

Venture capital business unveils $700m in funding for software start-ups
Dan Martin
Dan MartinDan Martin Content & Events

Posted: Mon 25th Sep 2023

A London-based venture capital firm has launched what is believed to be the largest fund for early stage business-to-business software start-ups ever raised in Europe.

The $620m (£508m) 'Dawn V' fund from Dawn Capital will provide founders at the Series A and B stage of fundraising with between $10m (£8.1m) and $40m (£33m).

A separate 'Dawn Opportunities III' $80m (£66m) follow-on fund will back businesses from Series C stage onwards.

Founded in 2007, Dawn Capital has so far invested in more than 50 software businesses. They include Swedish mobile payments company iZettle, which was bought by PayPal in 2008 for $2.2bn.

In a blog post, Dawn Capital said despite "a challenging last 18 months for tech", "Europe presents significant structural advantages for founders building software, from unprecedented technical talent through to world-leading regulatory leadership and research".

It added:

"With AI, we are at the beginning of another major technology shift, which is not even included in Gartner's $7 trillion figure [the estimate for total software spending by 2050].

"AI is both a significant opportunity in itself, as well as a disruptor to every software category — and will unleash untold productivity gains for enterprise.

"Not unlike when Steve Jobs unveiled the iPhone back in 2007, it is hard to fully comprehend the impact that AI will deliver on our personal and professional lives."

We regularly share news of funding available to small businesses. Stay up-to-date here.

Related Enterprise Nation resources

Small business funding: How to choose the right type for you

Small business funding: How much money should you ask for?

Small business funding: How to use the money you raise

Dan Martin
Dan MartinDan Martin Content & Events
I'm a freelance journalist and event host who helps small businesses and the organisations that support them. I'm also Enterprise Nation's news reporter and Bristol Local Leader. I have 20 years of experience as a small business journalist having interviewed hundreds of entrepreneurs from famous names like Sir Richard Branson and Deborah Meaden to the founders behind brand new start-ups. I've worked for a range of leading small business publications and support groups, most recently as head of content at Enterprise Nation where I was responsible for the prolific output of content on the company's blog and social media. I now freelance for Enterprise Nation as the website's news reporter and as the host of the Small Business sessions podcast. I'm based in Bristol where I run and host regular events with the local small business community in my role as Enterprise Nation's Local Leader for Bristol. I also have strong connections with other major business organisations in the south west region. In total, I've hosted over 100 events including conferences with an audience of hundreds for international brands like Xero and Facebook and live web chats from inside 10 Downing Street. With my partner, I co-run Lifestyle District, a lifestyle blog focused on culture, art, theatre and photography.

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