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Round2 Capital makes first close of €100 million fund for B2B software SMEs

Round2 Capital Partners, a pan-European lending firm, has just completed the first close of its second software fund with €62 million. The firm is aiming to reach a target of €100 million which will finance software SME’s across Europe. 

Founded in 2017, Round2 Capital is a pan-European lending firm which a revenue-based credit strategy. The firm’s approach enables software companies to turn their recurring revenues into flexible growth financing – allowing them to secure capital without dilution, loss of control or restrictive clauses. 

Now, the firm is raising its second fund: Round2 Capital Fund II. 

The details:

  • The fund has a total target of €100 million and has just made its first close at €62 million 
  • Expands Round2 Capital’s total assets-under-management to €115 million
  • 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.

Revenue-based funding

Since 2017, Round2 Capital has been operating with a long-term approach, opting for revenue-based funding that is reported to be more company-friendly, supporting long-term growth. 

Revenue-based funding enables beneficiaries to turn their recurring revenues into flexible growth financing, without the dilution or restraints of traditional funding methods. 

Software companies are continuing to grow across Europe, despite the current economic outlook. As industries have digitised, SaaS solutions are increasingly relied upon by businesses of all sizes and types, and startups and SMEs across the continent seem to be the ones providing the tools. This fund reflects the market growth and will be used to both financially support software companies as well as giving hands-on support in the key operational challenges SaaS companies face in the crucial phases of their development to reach €50 million ARR.

The fund, which will be based out of Luxembourg, will be managed by Christian Czernich, Jan Hillered, Isabella Hermann-Schön and Stefan Nagel. 

Patricia Allen
Patricia Allen
is the Head of Content at EU-Startups. With a background in politics, Patricia has a real passion for how shared ideas across communities and cultures can bring new initiatives and innovations for the future. She spends her time bringing you the latest news and updates of startups across Europe, and curating our social media.

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