DN Capital raises €200m fourth fund to back tech startups in London, Europe and Silicon Valley

 
Lynsey Barber
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FRANCE-ECONOMY-POLITICS-TECHNOLOGY
Shazam, Eve Sleep and PurpleBricks have proved successful for DN Capital

An early backer of Shazam, the UK music app sold to Apple last month, has raised a new €200m fund to invest in early stage startups.

DN Capital's fourth fund will focus on backing startups in the UK, Germany, the Nordics and France as well as the US.

Previously the venture capital firm has invested in Germany's Auto1, the online car marketplace which recently landed €460m from Softbank's massive tech fund, selling out a third of its stake as a result of the deal.

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It has also had successful exits with Eve Sleep, the mattress maker which went public last year, and listed online estate agent PurpleBricks, which yesterday unveiled plans to launch in the US.

Founder and chief executive Nenad Marovac said London, Berlin and Silicon Valley remain the firm's key locations, but noted that France was on the rise as a result of President Emmanuel Macron's efforts to boost the country's tech credentials.

Brexit has yet to have any impact on either its investing or efforts to raise cash for the new fund, which brings total assets under management to around €500m .

"We continue to think London is a very vibrant market, [with] great technologies coming especially in AI, fintech and digital health and we will continue to be very active here, as well as Berlin and Silicon Valley," he said.

He did warn that a hard Brexit might put companies off from setting up in the UK, however.

"We think today, [it's] still ok. I know people are still coming here to set up businesses from other places. The more red tape the less businesses are going to come. It's as simple as that," he said.

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With exits such as Shazam, co-founder and managing partner Steve Schlenker added there would be a "recycling of entrepreneurs" into the London ecosystem, irrespective of Brexit.

The fund was oversubscribed and Marovac said "investors from all over the world are starting to see that Europe is a great place for venture".

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