Two significant equity funds have recently made their debut in the investment landscape, aiming to support the growth of tech companies. These funds demonstrate a renewed enthusiasm for late-stage and growth capital investments in the midst of a somewhat challenging market environment.
The launch of these new equity funds showcases a growing optimism and appetite for investment in the tech sector. Late-stage capital is making a comeback, as investors aim to bolster pro-IPO companies in anticipation of market recovery next year. Simultaneously, early-stage investors like Dawn Capital are capitalizing on favorable valuations and deploying funds to fuel the growth of promising tech startups.
Mars Growth Capital Europe Launches First Equity Fund
Liquidity Group, a growth-stage debt financier, has partnered with MUFG, a Japanese bank, to launch the first equity fund under Mars Growth Capital Europe. Liquidity Group utilizes its innovative technology platform to make faster and more efficient decisions when deploying debt facilities, and it currently operates the Mars Growth Capital Europe, a debt fund targeting late-stage tech and mid-market companies.
The newly launched “Dragon Fund I” will focus on making growth equity investments in private, mid to late-stage tech and tech-enabled companies, with a particular emphasis on the Asia-Pacific region. With initial deal sizes ranging from $20 million to $100 million, this fund is set to provide the much-needed capital for companies in need of expansion and development.
Ridhi Chaudhary, Managing Director and GP Partner of Dragon Fund, has highlighted the power of Liquidity Group’s ML platform, which enables investment teams to evaluate opportunities comprehensively and at a faster pace.
Dawn Capital Raises $700 Million for Early-Stage Investments
In a separate development, Dawn Capital, a leading specialist B2B software venture capital firm based in Europe, has successfully raised $700 million for investments in early-stage companies. Dawn Capital has a proven track record of investing in successful tech companies, including Mimecast, iZettle, Tink, LeanIX, Collibra, Dataiku, and Quantexa.
The newly raised funds, Dawn V and Dawn Opportunities III, will cater to different stages of the investment cycle. Dawn V, with a capital pool of $620 million, is aimed at Series A and B stages, providing initial investments ranging from $10 million to $40 million, as well as additional capital for follow-on rounds. Dawn Opportunities III is an $80 million later-stage fund targeting companies at the Series C stage and beyond.
Haakon Overli, General Partner at Dawn Capital, expressed confidence in the European market and emphasized the increasing opportunities for investment in the region.