Invest in the
digital megatrend

DVC invest in innovative, fast growing EU businesses and latest technology trends that provide high returns in the context of a rock-solid regulated investment fund structure

Digital VC investments – 
Challenging but attractive

Tech startup investments are challenging since:

  • The lack of transparency and high transaction costs prevent investors from investing quickly and effectively
  • The information asymmetry (= lack of investor information) makes it difficult for investors to assess startup viability & potential
  • The technical aspects of digital startups can be somewhat esoteric and difficult to assess reliably and in depth

But tech startup investments also offer very attractive economics:

  • Venture Capital outperforms all other invest classes with an 11x value increase since 2008 and an annual value growth of >20%
  • The tech sector is outperforming other sectors due to its high scalability & agility. The top 5 most valuable companies are all tech companies. >40% of enterprise revenues are already digital
  • Successful tech startups grow at an average >60% per year (and faster in earlier years)

Benefits for investors – 
Strong returns, diversified risk

DVC offers investments in innovative, fast growing EU businesses and latest technology trends that provide high returns in the context of a regulated investment fund structure:

  • Privileged access to latest technology trends and innovative, fast growing assets made in the EU
  • Rock solid investment structure based on a regulated investment fund from Luxemburg
  • High return potential due to early-stage investments and active growth support
  • Regular reporting on asset developments provides full transparency on invested funds
  • Reduced portfolio risk due to diversification, structured asset selection and active asset development

Who we invest in – 
The best in digital

With DVC you invest in the best technology innovations. We invest in leading technology trends and core tech verticals with strong scaling potential:

  • AI & machine learning – Deep learning, voice & image recognition, conversational AI, expert systems
  • IoT & connected everything – smart devices for business & consumer applications, bus systems & connectors, IoT platforms
  • Cyber security & digital identity – GDPR, data privacy solutions, advanced security applications to identify, react & protect
  • Cloud, fog, edge – cloud apps & infrastructure, on premise cloud solutions (fog) and on site smart devices (edge)
  • 5G & intelligent mesh – intelligent connected digital and communication services with high bandwidth and low latency
  • Autonomous machines & robotics – cars, drones, bots, robots, smart household appliances and smart cities / infrastructure
  • Big data & data analytics – Digital twins, data lakes & business intelligence solutions, smart analytics and data visualization
  • Virtual & augmented reality – 3D design & visualization, digitally enhanced reality & data manipulation, remote services
  • ? – relevant new trends as we discover them

Where we invest –
Made in Europe

DVC focuses mainly on central EU (DACH + BNL). Central EU is a particularly fertile ground for VC investments with a high potential for digital innovation, a tradition of world-class engineering and a vital need for venture capital.

  • Located in the heart of Europe – large, central European market, economically strong with high innovation potential
  • Regional focus – we invest in startups in all regions, not only the  startup hubs
  • Strong funding needs: Funding is one of the main startup challenges with 78% of startups lacking sufficient funding. Only 26% of EU startups are currently VC funded
  • Germany and continental EU are catching up to the UK as prime VC locations. Berlin has become the 2nd biggest startup hub in the EU

When we invest – 
Early stage, proven concept

DVC is focused on startup and early growth stage investments to capture the extraordinary value creation opportunities during the transition from startup to profitable business operations. This is the phase when growth accelerates and where value creation (in %) is the fastest.

  • DVC‘s invest moment is typically after proof-of-concept when:
    • The product or service is customer ready and a good product market fit is proven
    • Initial customer traction has been established & the business shows early signs of rapid scaling (hypergrowth)
    • Unit economics are proven to be solid
    • The team is demonstrating a rapid learning curve and is well equipped to scale
  • During this phase startups are typically still burning money and starved for funding. Therefore attractive valuations are still achievable.
  • Through financial, operational & strategic support we develop the startups towards PE or IPO readiness.

How we source –
Deep scouting, rigorous screening

Our selection approach combines early & deep scouting with rigorous qualitative & quantitative screening to find the right fit:

  • We deep-source through:
    • Digitally supported trend scouting & sourcing
    • A broad network of business angels, accelerators & events
    • Several thousand direct contacts to industry experts, founders & investors
  • We rigorously screen potential invest opportunities through:
    • A qualitative and quantitative pre-selection – the „sieve“
    • A rigorous „head-to-toe“ assessment (check our startup page for more details on our 10-point assessment scheme)
    • And expect a 100/10 scaling capability (>100% revenue growth/yr, >10x business scalability)
  • We judiciously decide with an entrepreneurial spirit, a pragmatic attitude and a clear return expectation

Want to learn more?
Please let us know

If you want to learn more about us and potential invest opportunities for you, please fill the form on the right or send us a mail to investor@dvc.lu. We will get back to you within 48 hours and are happy to provide you with more information or arrange a call or meeting.

 

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