UK VCs were sent a message today by the EU: Continue to invest in European companies and we’ll invest in you. That at least seems to be the takeaway from the news that Dawn Capital, which has built up a reputation as an investor in early-stage SaaS and Fintech businesses in the UK and Europe, has closed its third fund, Dawn III at $232 million (£165 million), with the help of the European Investment Fund (EIF).
The EIF is committing £52 million after previously said it would no longer invest in UK venture capital due to Brexit. But it’s clear the strong European ties helped Dawn. It has a 50/50 split of UK and European companies in its portfolio.
Claiming to now be the largest European VC fund focused entirely on B2B tech businesses (Notion Capital might contest that), Dawn says the fundraising was heavily over-subscribed despite the hard cap being twice increased. This, the firm said, was down to growing interest amongst investors in the European…