Dpixel launches seed/early-stage fund

01 May 2008

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Fund

New venture capital firm Dpixel has recently launched its evergreen fund, Dseed, specialising in seed and early-stage development projects in the internet and digital media/technology sectors. The Milan-based fund has a target of EUR5m and offers three types of shares: series-A destined for the founders and management team; series-B for business angels and high net worth individuals; and series-C for professional investors.

The vehicle is projecting the closing of its series-B fundraising in June this year, with the series-C fundraising commencing some time in Q3 2008. Minimum subscription is set at EUR100,000 with the GPs contributing around EUR300,000 during the current round of fundraising. Management fees are set at EUR250,000 per year with a carry of 20%.

Investors

The vehicle is seeking financing among investors in Europe and North America relying on Dpixel's management team, business angels and high-net-worth individuals for the series-B fundraising stage with the series-C stage destined for professional investors.

Investments

The fund will seek to maintain a maximum of 20 companies in its portfolio focusing on seed and early-stage phase projects in the internet, digital media and technology sectors. Initial focus will be on Italian-based firms developing technologies and products with an international scope.

Average seed investment will be EUR200,000 up to a maximum of EUR1m and the vehicle will seek to retain qualified minority stakes with the minimum stake set at 20%. The nature of the fund gives it flexibility concerning its divestment timing. Half of the proceeds from exits will be returned to investors with the remaining 50% being reinvested in the fund - thus guaranteeing its sustainability.

Dseed's current portfolio is made of five investments: digital music marketer and distributor Kiver; Italian online ticketing site Charta; search engine and social marketing specialist SeoLab; interoperable DRM platform iDRM; and digital music label Sounday.

People

The fund is advised by Dpixel, a company founded by Gianluca Dettori. He also founded Vitaminic where he occupied the position of CEO from 1999-2004. Prior to that, he was managing director at Lycos-Bertelsmann. He started his career at Italia Online. Other members of the management team include: Massimo Martini (Yahoo!, Kelkoo, Overture); Charles Walker (Lycos-Bertelsmann, Servista, JPM); Franco Gonella (Vitaminic, Mastra, Istud); Antonio Concolino (Accenture, Elitel); and chairman of the investment committee Elserino Piol, formerly of Olivetti and adviser to KIWI I and KIWI II.

Name: Dseed

Target: EUR5m

Launched: February 2008

Focus: Seed/early-stage, internet & software

Contact

Gianluca Dettori

gianluca@dpixel.it

Tel: +39 348 701 501

Charles Walker

charles@dpixel.it

Tel: +44 7776 132 534

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