Dawn Capital notes that this year, software spend globally topped $1 trillion.
Less than a decade ago, this figure was reportedly half and by 2050 Gartner estimates it will reach $7 trillion. According to Dawn Capital, It has been “a challenging 18 months for tech, but software is truly in its infancy. And, we are never going back, regardless of what headlines might state.”
Dawn Capital explains that this is because digitization only “travels one way, forward, and mega-trends are still in their early stages.”
Cloud adoption across enterprise is “just 25% and major sectors like our financial and healthcare systems grapple everyday within the confines of legacy tech.”
Dawn Capital also mentioned that new societal challenges “continue to present themselves and the coming decade will demand advancements in areas including energy transition, climate change, financial inclusion, and drug development.”
With AI, we are at the beginning of “another major technology shift, which is not even included in Gartner’s $7 trillion figure.”
AI is both a significant opportunity in itself, as well as “a disruptor to every software category — and will unleash untold productivity gains for enterprise.” Dawn Capital further noted in a blog post that not unlike when Steve Jobs unveiled the iPhone back in 2007, it is hard “to fully comprehend the impact that AI will deliver on our personal and professional lives.”
Yet, for Dawn Capital, the most exciting part is that European founders are poised “to deliver some of the seminal companies that will underpin these tech stacks of the future, reflecting our share of fundamental research and the global economy. The foundations for success have never been better.”
With Europe presenting significant structural advantages for founders building software, from unprecedented technical talent “through to world-leading regulatory leadership and research.”
Now, Dawn Capital is announcing their latest $700m fundraise.
They have raised fresh capital “to invest in the best-of-the-best European founders pioneering the technology innovations that will drive these monumental platform shifts over the coming decades.”
Their fundraise reportedly “comprises two new funds: the $620m ‘Dawn V’, their most ambitious flagship fund to date and the largest dedicated early-stage B2B software fund ever raised in Europe, and their $80m follow-on fund, ‘Dawn Opportunities III’.”
Dawn V will support founders “from Series A and B stage with initial cheques of $10m to $40m, while Dawn Opportunities III will enable them to continue backing their portfolio winners from Series C stage onwards.”
Combined, these funds ensure they can continue meaningfully investing “in founders building the next generation of software from Series A all the way to exit.”