DN Capital unveils $350m ‘post-Covid fund’

9 Jul 2021

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The firm’s fifth fund will invest in early-stage start-ups that have potential to scale in the post-pandemic environment.

Investment firm DN Capital has announced a new $350m fund to back start-ups in the post-Covid age.

The firm’s fifth fund, appropriately dubbed Fund V, will invest in early-stage start-ups on both sides of the Atlantic.

Fund V will invest in areas such as software, fintech, consumer-focused companies and marketplaces.

According to the firm, which is headed up by Nenad Marovac and Steve Schlenker, about two-thirds of its investments have been in Europe with the rest in the US.

Schlenker said the “post-Covid fund” will invest in companies that are ready to grasp the opportunities that will emerge as the pandemic subsides.

“There are tech founders across the globe right now on critical missions to accelerate this recovery and help address the needs, and solve the biggest problems, of the post-Covid world,” Schlenker said.

The firm has a number of notable exits in its portfolio. It was an early backer of Shazam before it sold to Apple and in Auto1 before it listed on the German stock exchange. More recently online eyewear retailer MrSpex listed in Frankfurt at a $1bn valuation.

Some recent bets include investments in Austrian edtech start-up GoStudent, Finnish digital assets platform Tesseract and British fintech outfit Divido.

“The launch of our fifth fund gives us further scope to uncover new entrepreneurs with the biggest, brightest global ambitions,” Marovac said. “We pride ourselves on the fact that we work as hard as founders do to help them build their businesses, and this is something that’s going to be even more crucial as we, as a society, look to come back stronger following the pandemic.”

Thomas Rubens, a partner at DN Capital, added that after more than 20 years in business the firm has the right skills to identify early-stage companies with global potential.

“We have the youth and ambition in our team, as well as the huge global network, to be right at the cutting-edge of the next important trends. Especially those trends born out of the drastic, era-defining change we are witnessing today,” he said.

Jonathan Keane is a freelance business and technology journalist based in Dublin