Dawn Capital raises $620 million for a follow-on fund and $80 million for an early-stage B2B software fund.

Despite the current difficult environment for venture capital firms seeking to restock their ordnance, Dawn Capital, based in London, has successfully raised $700 million. Of this amount, $80 million is designated for a follow-on fund, while the remaining $620 million will be allocated to its dedicated early-stage B2B software fund.

Dawn V, the principal $620 million vehicle of the firm, will provide funding to expanding European B2B software companies through Series A or Series B initial ticket offerings varying from $10 million to $40 million.

The $80 million follow-on fund, Dawn Opportunities III, will provide exceptional portfolio companies with continued support through the Series C and beyond rounds, allowing the firm to proceed from Series A to exit.

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The firm reports that fifty percent of commitments have been raised from new investors and fifty percent from existing LPs. These new investors are based in the Middle East, Asia, the United States, Europe, and the Middle East, and include, among others, a number of Dawn’s portfolio founders and sovereign wealth funds, pension funds, endowments, funds of funds, family offices, and high net-worth individuals.

The firm has thus far deployed three investments from the newly established fund: Fonoa, a tax compliance platform headquartered in Dublin; Cover Genius, an embedded insurance platform; and FlowX.AI, an updater for legacy systems in financial institutions.

Since its establishment in 2007, Dawn has funded over eighty companies originating from sixteen European countries and raised more than two billion dollars from investors worldwide.

Mimecast (previously listed on the NASDAQ and acquired privately by Permira for $5.8 billion), iZettle (sold to PayPal for $2.2 billion in cash), Tink (acquired by Visa for $2.0 billion), LeanIX (recently acquired by SAP), and presently established unicorns Collibra, Dataiku, and Quantexa are included in the firm’s portfolio.  

Regarding the new fund, Haakon Overli, general partner and co-founder of Dawn Capital, stated:

“Within the past eighteen months, everyone has been exposed to the arduous macro environment.” Our original mission, which was to assist European founders in creating global B2B software leaders, remains the foundation of Dawn. We are convinced that now is an excellent time to invest, and we foresee the opportunity in Europe continuing to expand.

“Based on our twenty years of experience, organizations that have been established during difficult periods are compelled to provide even greater value through persuasive offerings and enduring resilience.”

General partner and co-founder of Dawn Capital Norman Fiore further stated:

“At this very moment, another significant technological transition is commencing. Our entrepreneurs frequently emphasize the antiquity of artificial intelligence. Presently, AI has made its way from the administration via the engineering departments. It is both an investment opportunity in and a disruptor to every software category in which Dawn has invested since its inception, due to its impending prevalence. Hence, we were resolute in our endeavor to procure funds of a magnitude that reflected the immense potential that lay before us.”