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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."
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