In March of this year, DTCP — also known as Digital Transformation Capital Partners — closed $300 million in funding for its Growth Equity fund. This venture capital firm is headquartered in Germany and has raised capital from new and existing investors. These include Softbank and Deutsche Telekom; the former recently invested in two German tech startups. Additionally, these funds were provided by institutional, pension, family and corporate offices investors.
Plans To Back Web3, AI, Fintech Startups
DTCP plans to complete fundraising for the fund in 2023. GE III will invest in cloud-based enterprise software and business Software-as-a-Service, also known as SaaS. This includes software for AI, cybersecurity, Fintech, Web3 and vertical SaaS solutions. Additionally, investors will fund cloud infrastructure software and IT applications.
The fund seeks to make approximately 25 equity investments between early growth and growth stage businesses. It also focuses on businesses in Europe, Israel and the United States that are considered category leaders. These investments are made through late stage rounds B through D, or alternatively a Series E round.
Tom Preuss, a Managing Partner at DTCP Growth, thanked investors for their trust and support. He also thanked existing and new investors for their support. He was excited to continue with a proven strategy that had one of the largest teams focusing on cloud-based enterprise software in Europe. This encouraged him to back category leaders and outstanding entrepreneurs within the rapidly growing Cloud-based enterprise software ecosystem. Consequently, he created attractive co-investment opportunities for his investors.
DTCP Growth’s Managing Partner Jack Young said, “The current market environment and recent valuation reset offer unique opportunities to invest in category leaders in the enterprise software market. We will deploy the Fund carefully while balancing risks and rewards. By using our automated proprietary benchmark system and deep knowledge of the industry, we can identify leaders in target markets and help them grow to their full potential.”
$15M Investment In Cognigy.ai
Cognigy.ai is an AI platform for businesses to intelligently and conversationally interact with customers and employees around the clock. Its name is based on the term ‘conversational intelligence,’ and it provides interfaces in over 20 languages. As part of its Series B funding round, the fund invested $15 million in Cognigy.ai.
Ambitious VC Firm
DTCP was founded in 2015 by Thorsten Langheim and Vicente Vento in Hamburg, Germany. It is a venture capital firm with offices in Hamburg, London, Luxembourg, San Francisco, Seoul and Tel Aviv.
By focusing on digital technology and growth equity, this venture capital firm raised over $1 billion in funds from both corporate and institutional investors. DTCP Growth invests in companies that develop enterprise software and infrastructure. DTCP Infra focuses on data centers, mobile access, fiber and more; it invests in infrastructure software companies.
DTCP’s growth equity funds predate the initials GE I and GE II by 10 years. These funds are the predecessor to DTCP for its high returns with low loss ratios and minimal lost capital. This is due to investments in 32 enterprise software companies located in Asia, Europe, Israel and the USA. 11 of these companies were bought out or publically traded after receiving funding from GE I and GE II. Some of these include Guardicore, Fastly and Sagnavio, who returned over 50% of their capital back to investors.