The London-headquartered VC has raised just under half of its €100m target, and expects to reach final close by the end of the year.
The fund will invest two-thirds of its capital in Western Europe and rest elsewhere with a focus on the Americas and Central and Eastern Europe.
Half of the money raised will be channelled towards early-stage investment, the remainder for growth equity deals, all in the software and digital media sectors.
The fund has made three investments so far: Tbricks, an algorithmic trading technology company based in Sweden and Russia; DezineForce, a UK engineering design and optimisation company; and Familybuilder, a US business that delivers genealogy applications online.
DN Capital was founded in 2001, just as the dot.bomb was hitting, by former Advent International partner Nenad Maro, and Steven Schlenker, who had been with SUN Group. It raised €47.5m for its first fund, GVC I, which is now fully committed in 14 companies, which include Endeca, Lagan, OLX and Shazam.
DN’s new fund is the latest in a line of European VC funds that have gone to market in recent months. As well as the new MTI fund reported on this page, others include Munich-based venture capital firm Target Partners raising €61.5m at first close for its second fund, and London-based venture capital firm TLcom Capital raising €50m for a first closing of its anticipated €150m second fund.
Other venture funds in the market include Barcelona-based Ysios Capital Partners looking for €65m for its maiden fund, and Belgian-based Capricorn Venture Partners is looking to close on between €80m and €100m any week now.