ESG policy

Dawn Capital is Europe’s leading specialist B2B software investor, with assets under management of $2bn.

While not an ESG or impact fund, we maintain a formal ESG Policy and are proud signatories of the Principles for Responsible Investment (PRI), having joined in July 2023. Our ESG approach is operational, focused on risk mitigation, governance standards and meeting institutional expectations. We believe in responsible stewardship to build resilient businesses sustainably; however, ESG factors are not currently embedded in our investment strategy, nor are they used to screen or select investments.

Under the EU Sustainable Finance Disclosure Regulation (SFDR), our funds are classified as Article 6 products. Article 6 funds do not promote environmental or social characteristics, nor do they have sustainable investment objectives; however, they must disclose how sustainability risks are integrated into investment decisions, if at all.

In accordance with SFDR Article 7(1), we do not currently consider the principal adverse impacts (PAIs) of investment decisions on sustainability factors at the entity or product level.

While we do not consider ESG factors in our investment strategy, deal selection or valuation, we recognise that material ESG risks—particularly those related to governance, compliance, and reputation—can impact company performance. These are considered on a proportionate basis during our diligence process and monitored at the board level post-investment.

Dawn invests in companies predominantly from Series A and B, and selectively funds its best-performing companies through growth rounds to exit. At the outset, we seek to partner with founders building the next generation of global software leaders, supporting them in harnessing extraordinary teams, exceptional technology, and scalable business models to create category-defining companies that will become critical components of the enterprise software stack.

To date, Dawn has invested in over 80 companies founded out of 16 countries and played a pivotal role in the outcomes of some of the Europe’s most significant B2B successes, including Mimecast (formerly NASDAQ-listed, taken private by Permira in a $5.8bn transaction), iZettle (sold to PayPal for $2.2bn cash), Tink (purchased by Visa for $2.0bn), and LeanIX (acquired by SAP). Dawn has consistently delivered industry-leading returns for its investors and was named Europe’s top-performing venture capital fund manager by Preqin in 2023. All the firm’s funds rank in the top quartile for venture capital performance globally.

Dawn uses a tried-and-tested due diligence approach throughout its investment process, applying its unique data-driven methodology to make initial investments, as well as to continually analyse portfolio companies on a quarterly basis. Throughout the investment period, Dawn provides active, hands-on support to drive the growth and performance of its portfolio companies, with a focus on building long-term, sustainable enterprises which will continue to thrive beyond Dawn’s ownership.

In line with our operational approach to ESG, we review and update this policy annually. In addition, we consider the following ESG issues for Dawn’s team and business:

Environmental

  • We measure our operational carbon footprint annually (Scope 1, 2 and 3).
  • We encourage energy-conscious behaviour across the firm and monitor high-impact ESG issues, while recognising that B2B software businesses generally carry a lower environmental footprint than other industries.

Diversity & Inclusion

  • We foster an inclusive, diverse, and equitable workplace through our non-discrimination policy.
  • We implement staff wellbeing programs and adhere to the highest standards around health and safety.
  • We encourage our portfolio companies to uphold similar practices, but do not use social criteria to exclude or select investments. Social factors are not used for investment selection or portfolio scoring.

Governance

  • Governance and founder integrity are critical to our investment process.
  • Dawn takes board or observer seats in all portfolio companies to uphold governance standards.
  • Oversight of material ESG issues is conducted through quarterly Board Meetings and weekly Investment Committee (“IC”) reviews.

Dawn Foundation & Volunteering

  • Through the Dawn Foundation, our team is encouraged to volunteer for up to three days per year.
  • We also support charitable giving and community engagement initiatives beyond our core investment work, reflecting our commitment to making a positive contribution to society.

Updated June 2025

ESG policy | Dawn Capital