Investment firm DVC announces close of $80 mn fund for SaaS start-ups

It will invest in one company per quarter, or a total of approximately 20-25 companies over five years.

Dallas Venture Capital (DVC) said on Wednesday it was closing its $80 million fund after it was oversubscribed (the target amount was $75 million).

The investment firm is raising a separate fund in India, DVC India Fund 1, and has raised $20 million of its $50-million target.

DVC US Fund II plans to invest alongside its $50 million India fund, making it a cross-border venture capital fund that will back start-up ecosystems in the US and India. DVC plans to invest about $130 million in B2B SaaS (software as a service) start-ups over the next four to five years through both its funds.

DVC was founded in 2020 by Dayakar Puskoor, an entrepreneur, and co-founded by Abidali Neemuchwala, former chief executive officer of Wipro and a veteran executive.

"We are overwhelmed by the response to our DVC Fund II and particularly pleased with the recognition as a cross-border VC by our investors as they benefit from the start-up revolution that is taking place in India,” said Puskoor, managing director of DVC.

“We partner with our portfolio companies as mentors offering strategic guidance during the most important phase of the start-up's journey to accelerate their revenues from $1 million to beyond $10 million through our time tested and honed DVC Advantage program leveraging our network of venture partners and advisors,” said Abidali Neemuchwala co-founder and director of DVC.

“The completion of fundraise of US Fund II, which is a co-investing partner for DVC India Fund, is a significant milestone in DVC’s journey. We are confident that both the funds, which are truly cross border in nature, will emerge as significant contributors to the growth of Indian SaaS start-ups,” said Shyam Penumaka, partner at DVC.

“The focus of DVC India Fund is on raising the remaining capital from institutional investors, family offices, and high net worth individuals keen on participating in the flourishing Indian deep technology B2B SaaS sector,” said Penumaka.

DVC has invested in four start-ups before: Lucy.ai, Rollick, Citylitics, and Disprz. DVC has a healthy pipeline of companies and plans to, on average, invest in one company per quarter, or a total of approximately 20-25 companies over the next four to five years.