FinTech news in DTCP category

This week, we’re getting a look at what SoftBank is doing to diversify how it deploys capital with a little less direct risk to itself: DTCP says that SoftBank has taken a major stake in its next fund, part of a $300 million tranche that it has raised to double down on growth rounds in Europe. DTCP’s first fund in 2015 and second fund in 2018 totaled $410 million and was invested in 32 enterprise software companies across Europe, Israel, USA and Asia, and DTCP notes that 11 of those investments have been acquired or gone public so far. This fund, DTCP’s third, is a mark of how far the European ecosystem has come along when it comes to growth rounds: once it would have been a rarity to raise growth rounds in this region, with the more promising startups founded in Europe decamping to the U.S. to tap investors there if they wanted to scale. While SoftBank is likely to continue making direct investments, investing in a fund like DTCP helps it source more deal flow, both as an indirect backer and to vet more companies that it might want to pursue directly as well.