The European software investment firm Round2 Capital completes the first close of its second software lending fund with €62 million, expanding its total assets-under-management to €115 million. The firm’s second fund targets European growth companies offering B2B software critical to business success with typically € 5-25m Annual Recurring Revenue.
Round2 Capital is a leading pan-European software lending firm applying an actively managed revenue-based credit strategy and has invested in more than 25 companies throughout 8 European jurisdictions.
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Luxembourg-based Round2 Capital Fund II continues to apply the same successful strategy as Round2 Capital’s fully invested first software lending fund and has a target of €100 million. The second vehicle will finance up to 40 small- and mid-cap software companies all over Europe, with a focus on the DACH and Nordic markets.
With its company-friendly revenue-based funding approach Round2 Capital enables software companies to turn their recurring revenues into flexible growth financing, that allows those businesses to secure capital without any dilution, loss of control, or restrictive covenants.
Round2 Capital takes a long-term approach and is an active partner to its portfolio companies, by providing hands on support in the key operational challenges SaaS companies face in the crucial phases of their development to reaching €50m ARR. As of November 2022, Round2 Capital Fund I has no defaults and 4 exits.
The Round2 Capital Fund II investors include various family offices and institutional investors from Europe as well as the US. The anchor investor is the European Investment Fund (EIF), which will be represented on the fund’s governance board.
The fund will be managed by Christian Czernich, Jan Hillered, Isabella Hermann-Schön and Stefan Nagel, who were responsible for managing the first vintage, as part of an expanding 11-person team running the Round2 Capital software lending platform.