DTCP set to invest in web3 with $300 million fund backed by SoftBank

Quick Take

  • European venture firm DTCP announced the first close of its third fund, having raised $300 million.
  • The new fund will invest in web3, fintech and several other areas. Investing juggernaut SoftBank is among the investors.

European venture firm Digital Transformation Capital Partners (DTCP) announced the first close of its third fund, having raised $300 million.

The fund will invest in web3, fintech and several other areas, according to a company release on Tuesday. It plans to continue raising capital and close fundraising in 2023. Investing juggernaut SoftBank and German telecommunications company Deutsche Telekom are investors in the fund, per the release. 

DTCP started out as a venture arm for Deutsche Telekom. It’s since been spun out as independent company and invested in the likes of Auth0, Fastly and Guardicore. 

The venture firm currently has $2.3 billion assets under management and made over 70 investments, according to its website.  

DTCP is continuing to raise for the third fund and is expected to close in March 2023 with a target raise of $500 million and a hard cap of $600 million, according to a  report from TechCrunch. TechCrunch's report says that Deutsche Telekom and SoftBank are anchors for the fund.

The new fund seeks to have around 25 investments in the range of $20 million to $25 million for startups in growth stages, typically as part of a Series B to D, per the company release. It will double down on investments in Europe, Tel Aviv and the U.S. 

This news comes as SoftBank itself announces that it is mulling a third fund, according to a report from the Wall Street Journal. SoftBank made a name for itself with significant investments in high flying tech startups, such as Slack, WeWork and Uber — as well as the launch of mammoth venture funds. 

SoftBank first launched a $100 billion fund, known as the Vision Fund, in 2017. In 2019, SoftBank launched a second fund at $40 billion.  

SoftBank’s bets have had mixed results, it recently reported a $23.4 billion loss as it takes a hit from a downturn in tech valuations and foreign currency losses.

The tech investment firm is reportedly downsizing in Europe as well as other markets. The investment in DTCP could enable SoftBank to still gain exposure to the European market. 

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