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Round2 Capital: first closing of €100 million software lending fund

Photo: Chris­tian Czer­nich (CEO & Foun­der & Mana­ging Part­ner), Jan Hille­red (Foun­der & Mana­ging Part­ner), Isabella Hermann-Schön (Mana­ging Part­ner), Stefan Nagel (Mana­ging Part­ner). Photo © Markus Schlögl
10. Novem­ber 2022

Luxembourg/ Vienna (ÖS) — Round2 Capi­tal comple­tes first closing of € 100 million soft­ware lending fund. The company’s second fund targets Euro­pean growth compa­nies offe­ring B2B soft­ware that is criti­cal to busi­ness success and typi­cally gene­ra­tes €5–25 million in recur­ring annual revenue.

Euro­pean soft­ware invest­ment house Round2 Capi­tal closes the first part of its second soft­ware lending fund with €62 million, brin­ging its total assets under manage­ment to €115 million. Round2 Capi­tal is a leading pan-Euro­­pean soft­ware lending firm that employs an actively mana­ged, reve­­nue-based lending stra­tegy and has inves­ted in more than 25 compa­nies across 8 Euro­pean countries.

The Luxe­m­­bourg-based Round2 Capi­tal Fund II applies 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 medium-sized soft­ware compa­nies across Europe, with a focus on the DACH and Nordic markets.

With its busi­­ness-friendly, reve­­nue-based finan­cing approach, Round2 Capi­tal enab­les soft­ware compa­nies to convert their recur­ring reve­nue into flexi­ble growth finan­cing that allows these compa­nies to secure capi­tal without dilu­tion, loss of control or restric­tive covenants.

Round2 Capi­tal takes a long-term approach and is an active part­ner to its port­fo­lio compa­nies, provi­ding hands-on support for the key opera­tio­nal chal­len­ges SaaS compa­nies face in the criti­cal stages of their deve­lo­p­ment to reach €50M ARR. As of Novem­ber 2022, Round2 Capi­tal Fund I has no defaults and 4 exits.

Round2 Capi­tal Fund II inves­tors include various family offices and insti­tu­tio­nal inves­tors from Europe and the USA. The anchor inves­tor is the Euro­pean Invest­ment Fund (EIF), which will be repre­sen­ted on the fund’s board of directors.
— The fund is mana­ged by Chris­tian Czer­nich, Jan Hille­red, Isabella Hermann-Schön and Stefan Nagel, who were already respon­si­ble for mana­ging the first cohort. You will be part of a growing 11-person team that opera­tes the Round2 Capi­tal soft­ware lending plat­form. www.round2cap.com

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