Digital Horizon has launched a $200m-targeting second venture fund after providing 40% annual return to investors from Fund I.
The new fund will focus on fintech and corporate software sectors. Digital Horizon said the fund was unique in adopting a multi-stage approach, investing in companies at all stages of the startup cycle. It said the approach had generated high returns over a long period of time with the first fund.
Alan Vaksman, founder and managing partner of Digital Horizon, said, “We are delighted to launch our second fund, following an oversubscribed first fund.
“In our first fund we moved away from the traditional venture approach and invested in companies at various stages from Round A to D. Investing in early stage startups can mean double-digit multiples, but this is “long” money, locked in for seven or more years.
“In later stage investments, the return on investment occurs in just one or two years, but growth slows to an average of 2-4x. A multi-stage fund provides high returns while enabling the investors shorter investment horizon and liquidity. Our new fund will adopt the same approach”.
Digital Horizon particularly focuses on startups founded by immigrant entrepreneurs with 70% of investments made in businesses that the founders were building their business not in the country of origin.
Previous investments include Klarna, team management platform Monday.com, data streaming platform Ably, retail analytics platform Trax and InsureTech companies Cuvva and Obligo.
Copyright © 2021 AltAssets
