DN Capital Investment Strategy and Portfolio

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DN Capital's investment strategy is focused on backing ambitious entrepreneurs and growth-stage companies in Europe and Israel.

They invest in sectors such as fintech, e-commerce, and digital marketplaces.

DN Capital's portfolio is diverse, with investments in over 100 companies across various industries.

Their investment approach is characterized by a long-term perspective and a willingness to take calculated risks.

About DN Capital

DN Capital is a leading venture capital firm that focuses on technology-driven startups in Europe and the United States.

The firm has a keen eye for innovative solutions and invests in early-stage companies that show potential for significant growth and disruption within their respective industries.

Ideal customers for DN Capital are visionary entrepreneurs seeking strategic funding and mentorship to accelerate their businesses.

About

DN Capital is a venture capital firm that has been around since 2002, making it a seasoned player in the industry. It was founded by David Chao and David Marginson, who brought a wealth of experience in technology investing to the table.

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The firm has a strong focus on supporting entrepreneurs and startups, with a particular emphasis on the technology sector. This is evident in its portfolio of companies, which includes names like Zalando and Just Eat.

DN Capital has a presence in both London and Paris, with a team of experienced investment professionals who work closely with portfolio companies to provide guidance and support.

Team Profile

At DN Capital, you'll find a team of experienced professionals who are dedicated to helping startups grow. Nenad Marovac is a key member of the team, based in London, and he's also involved with Divido and Hostmaker.

DN Capital's team is led by Nenad Marovac, who is based in London, and includes other experienced professionals like Ian Marsh, also based in London.

Marius Oesterschlink is another member of the team, although his location is not specified.

DN Capital's team also includes Massimo Prelz and Thomas Rubens, both based in London.

Here's a list of the team members mentioned:

  • Nenad Marovac (London, Divido and Hostmaker)
  • Ian Marsh (London)
  • Marius Oesterschlink (unknown)
  • Massimo Prelz (London)
  • Thomas Rubens (London)

What Is Capital?

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DN Capital is a venture capital firm that invests in early-stage companies with potential for significant growth and disruption in their industries.

They focus on technology-driven startups in Europe and the United States, which suggests they're looking for innovative solutions that can make a real impact.

DN Capital partners with companies in sectors like software, fintech, and e-commerce, providing not only capital but also valuable industry insights to help them thrive.

Ideal customers for DN Capital are visionary entrepreneurs seeking strategic funding and mentorship to accelerate their businesses.

Investments and Exits

DN Capital has a significant track record of investments and exits. The firm has raised approximately $600 million, with a focus on helping US companies enter the European market.

One notable exit is Shazam, which was acquired by Apple for approximately $400 million. DN Capital has also had success with other exits, including Datanomic, Quandoo, Kana, Apsmart, Endeca, and Purplebricks.

Here are some of the notable exits from DN Capital's portfolio:

  • Shazam (acquired by Apple for approximately $400 million)
  • Datanomic (acquired by Oracle)
  • Quandoo (acquired by Japan's Recruit Holdings for $219 million)
  • Kana (acquired by Verint Systems for $514 million)
  • Apsmart (acquired by Thomson Reuters)
  • Endeca (acquired by Oracle for $1.1 billion)
  • Purplebricks (LSE: PURP)

Investments

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DN Capital has made 304 investments, with their latest investment being in Sami as part of their Series B - II on December 17, 2024.

The firm has helped many companies achieve their growth goals through these investments.

DN Capital has raised approximately $600 million to support their investments.

Their investments have led to some impressive exits, with notable examples including Shazam and Datanomic.

Here's a list of some of the firm's notable exits:

  • Shazam (acquired by Apple for approximately $400 million)
  • Datanomic (acquired by Oracle)
  • Quandoo (acquired by Japan's Recruit Holdings for $219 million)
  • Kana (acquired by Verint Systems for $514 million)
  • Apsmart (acquired by Thomson Reuters)
  • Endeca (acquired by Oracle for $1.1 billion)
  • Purplebricks (LSE:PURP)

Portfolio Exits

DN Capital has a notable track record of successful exits, with companies like Shazam being acquired by Apple for approximately $400 million.

One of the most significant exits was the acquisition of Endeca by Oracle for $1.1 billion.

DN Capital has also helped companies like Quandoo and Kana achieve successful exits, with Quandoo being acquired by Japan's Recruit Holdings for $219 million and Kana being acquired by Verint Systems for $514 million.

In addition to these notable exits, DN Capital has also helped companies like Datanomic and Apsmart achieve successful exits, with Datanomic being acquired by Oracle and Apsmart being acquired by Thomson Reuters.

Here are some of the notable exits in DN Capital's portfolio:

Purplebricks is another notable exit, although the deal value is not publicly disclosed.

Countries Invest In

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Countries like China, the UK, and the US have been investing heavily in the tech industry, with China being the largest investor in 2020, accounting for over 40% of global venture capital investments.

The UK has been a hotbed for fintech investments, with a significant portion of its venture capital going towards this sector.

Sweden has been investing in sustainable energy, with companies like Spotify and IKEA leading the charge.

India has been investing in e-commerce, with the government implementing policies to support the growth of the sector.

The Middle East has been investing in real estate, with countries like Dubai and Abu Dhabi investing heavily in luxury property developments.

IPOs & Public Firms

Investing in IPOs and public companies can be a thrilling experience, but it's essential to understand the process and timelines involved. Remitly's IPO date was September 23, 2021.

DN Capital's portfolio includes several public companies, and their IPO dates vary. AUTO1 Group went public on February 4, 2021. Shift Technologies, on the other hand, listed on the stock market on June 4, 2019.

DN Capital also invested in Windeln, which went public on May 6, 2015. The company received its first round of investment on September 15, 2010.

Investment Strategy

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DN Capital's investment strategy is focused on enabling entrepreneurs to scale their businesses. They provide funding to startups in the digital economy.

With a strong emphasis on technology, DN Capital invests in companies that leverage data and digital platforms to drive innovation. This includes fintech, e-commerce, and software as a service (SaaS) companies.

Their investment approach is collaborative, with a focus on working closely with portfolio companies to drive growth and success.

Co-Investors

Co-investors play a crucial role in the success of DN Capital's portfolio companies. Over the past 22 years, 845 investors have co-invested in these companies.

DN Capital has collaborated with some notable investors who have invested in rounds before their involvement. FJ Labs and Y Combinator are two such examples, having co-invested in 7 and 3 companies respectively before DN Capital.

FJ Labs is a top co-investor of DN Capital, having co-invested in 8 companies. This demonstrates the value of partnering with experienced investors who can bring valuable expertise to the table.

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A total of 291 investors have co-invested with DN Capital in various companies. This diverse network of investors brings a wealth of knowledge and resources to the table.

Some notable investors who have co-invested with DN Capital after their initial investment include Goldman Sachs, FJ Labs, and SVB. These investors have co-invested in 6, 6, and 5 companies respectively, highlighting the importance of building strong relationships with fellow investors.

Here are some key statistics on DN Capital's co-investors:

  • Top co-investors: FJ Labs (8 companies), Goldman Sachs (6 companies), SVB (5 companies)

Which Company Stage Does Invest Generally?

DN Capital generally invests in companies that have reached the Series A stage, with a significant majority of their investments falling into this category. In fact, out of 68 investments, 68 of them were at the Series A stage.

Their investment portfolio also includes a substantial number of seed-stage companies, with 48 investments in this category. This suggests that DN Capital is interested in supporting early-stage startups as well.

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DN Capital's investment strategy is not limited to these two stages, however. They also make investments in Series B and Series C companies, albeit in smaller numbers. Specifically, they have invested in 12 Series B companies and 2 Series C companies.

If we look at the numbers, it's clear that Series A is the primary focus for DN Capital. Here's a breakdown of their investments by stage:

Which Sectors to Invest In?

Investing in sectors that are less prone to economic downturns can provide stability and growth.

Healthcare is a sector that tends to perform well even during economic downturns, as people will always need medical care.

The technology sector is another area that has shown consistent growth, with companies like Amazon and Google continuing to innovate and expand their services.

Renewable energy is a growing sector that is becoming increasingly important as the world shifts towards sustainable energy sources.

According to data, the renewable energy sector is expected to grow by 25% annually, making it a promising area for investment.

The consumer staples sector, which includes companies that produce everyday essentials like food and household goods, is also a good option for investors looking for stability.

Investment Portfolio

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DN Capital has a significant investment portfolio, with a total of 304 investments made. They have a strong track record of helping US companies enter the European market.

One notable investment is Shazam, which was acquired by Apple for approximately $400 million. DN Capital has also invested in Datanomic, which was acquired by Oracle.

DN Capital's portfolio includes a range of successful companies, such as Quandoo, which was acquired by Japan's Recruit Holdings for $219 million. They have also invested in Kana, which was acquired by Verint Systems for $514 million.

Here are some of the unicorns in DN Capital's portfolio:

58 Portfolio Exits

DN Capital has a notable track record with 58 portfolio exits, showcasing their ability to identify and support successful companies.

Their latest portfolio exit was Tignis on December 16, 2024, acquired by Cohu for an undisclosed valuation of $XXM.

DN Capital's portfolio exits have been consistently impressive, with a range of exit types, including acquisitions and mergers.

Here are some key statistics from their portfolio exits:

DN Capital's portfolio exits demonstrate their ability to identify and support successful companies, and their consistent track record is a testament to their investment strategy.

Unicorns in Portfolio

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As I dug into DN Capital's portfolio, I was excited to find some truly remarkable companies. One of the most striking things about these companies is their Tracxn Score, which ranges from 58 to 78.

The highest Tracxn Score among these companies belongs to GoStudent, which scored an impressive 78. This company provides an online tutoring platform for K-12 students and is based in Vienna.

DN Capital has invested in a variety of sectors, including Enterprise Applications and Consumer. In the Enterprise Applications sector, companies like Incode and Sift have received investments. Incode provides AI and cloud-based biometric systems, while Sift offers fraud prevention solutions for payments.

Interestingly, some of these companies have been around for a while. For example, Sift was founded as far back as 1997, while Jobandtalent was founded in 2009.

Here's a quick rundown of some key stats for these companies:

These companies are all at different stages of development, with some having received Series B investments and others reaching as far as Series E.

Fund Information

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DN Capital is a venture capital firm that focuses on investing in technology and internet companies. They have a presence in London and Munich.

DN Capital was founded in 2000 by Mark Evans and David Delainey. They have a team of experienced investment professionals who have invested in over 50 companies.

DN Capital invests in companies at various stages, from seed to growth capital. They have a strong track record of successful exits, including acquisitions and listings.

DN Capital has a diverse portfolio of companies across different industries, including fintech, e-commerce, and digital media. They have invested in companies such as Just Eat, Zalando, and Wonga.

Comparison and Benefits

DN Capital offers a wealth of resources to propel your startup towards success, including strategic funding, expert mentorship, and networking opportunities.

Their investment comes with the promise of growth-oriented collaboration and innovative solutions tailored to your needs, and they structure their financial engagements through equity investments, which means their funding will be in exchange for ownership stakes in your company.

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You can consider Capchase Pay as a flexible financing solution that allows you to pay for DN Capital's services in a way that suits your cash flow constraints, offering flexible payment plans on SaaS contracts.

Here's a comparison of DN Capital with some of its competitors:

Compare to Competitors

Episode 1 Ventures and Talis Capital are two venture capital firms that compete in the early-stage investment market. Episode 1 Ventures was founded in 2013 and is based in London, United Kingdom.

Episode 1 Ventures focuses on providing pre-seed and seed funding to B2B software startups, aiming to guide them towards a successful Series A round. This approach allows them to engage with startups for the long-term, offering support and building relationships from the outset of the entrepreneurial journey.

Talis Capital, on the other hand, focuses on high-conviction investments in the seed and series A stages within the technology sector. They provide funding and support to founders building category-defining companies.

Both Episode 1 Ventures and Talis Capital are based in London, United Kingdom, which suggests a strong connection to the European tech ecosystem.

How to Benefit from Alibaba Cloud Services

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Partnering with DN Capital can be a game-changer for your startup, giving you access to a wealth of resources that can propel you towards success.

Their extensive network and experience in the venture capital space can provide you with the guidance needed for sustainable growth. You'll gain access to expert mentorship from successful entrepreneurs and industry leaders.

Strategic funding that matches your growth requirements is also part of the package, as well as networking opportunities with other high-potential startups and investors.

Here are the benefits of partnering with DN Capital:

Their investment comes with the promise of growth-oriented collaboration and innovative solutions tailored to your needs. This aligns their success with yours, as they benefit from your growth.

Frequently Asked Questions

What does DN Capital do?

DN Capital invests in early-stage and growth-stage companies across various sectors, including fintech, SaaS, and digital media. They focus on seed, series A, and select series B investments to support innovative startups.

Who is the new partner of DN Capital?

DN Capital has hired Gülsah Wilke as its new partner. Gülsah Wilke will also lead the company's German office.

Elena Feeney-Jacobs

Junior Writer

Elena Feeney-Jacobs is a seasoned writer with a deep interest in the Australian real estate market. Her insightful articles have shed light on the operations of major real estate companies and investment trusts, providing readers with a comprehensive understanding of the industry. She has a particular focus on companies listed on the Australian Securities Exchange and those based in Sydney, offering valuable insights into the local and national economies.

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