DCP set for final close on EUR 45m growth fund this month

The vehicle, which held a first close on EUR 30m in September 2020, has made 10 investments with EUR 5m deployed to date, he said. It is set to to finalize another two or three deals before the end of this year.

Domiciled in Luxembourg, Fund II started soft marketing late in 2019 with initial contacts with its anchor LPs. The fund has received commitments from 10 LPs, about one third being funds-of-funds, 30% government bodies, 17% corporations and 8% pension funds, Zontul said. The European Investment Fund (EIF) is the cornerstone investor in the new fund, with half of LPs being new investors, he added.

The fund will have a lifespan of 10 years with 1+1 year extension options, he said.

Its predecessor vehicle, which closed on EUR 37m at the end of 2015, is expected to return 3x the invested capital, he added.

Investment strategy
DCP’s new fund invests in seed rounds and Series As, Zontul said. Some 80% of the new investments will be made in AI and software startups, with the remainder capital split between hardware and medical product or software startups, he added.

It will target businesses in the EU, the UK and the US, as well as Turkey. Its ticket size will be from EUR 250,000 up to EUR 4.5m, with no pre-fixed stake sizes but generally 10% for seed investments, Zontul said.

DCP plans to conduct five to six investments per year and is open to co-invest with other funds, he said. Smartalpha, an AI solutions for healthcare professionals, machine and AI-based wireless network company TEA networks and US-based Tazi, an adaptive machine learning serving business users, are among the significant investments from Fund II, Zontul said.

The VC’s team consists of nine people with eight of them dedicated to investments and operations, Zontul said. The firm expects to add two more people to the investment team, he added.

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