Reportedly, the European SaaS industry has proven that it can deliver healthy returns that outperform other areas of the tech market. In Q3 2023, of the top 10 venture-backed exits, most were in the software industry. The still unrealised potential of digitisation across multiple industries and the foundational impact AI show that we are at the beginning of the European SaaS boom. Recently, we saw the French SaaS platform Vizcab and London’s Outverse raise funding.
At this point in time, London- and Stockholm-based Oxx, a specialist VC in European B2B SaaS companies at the scale-up stage, has announced the final close of its second fund generation at $190 million. The firm invests in companies that have reached Product-Market fit and helps them unlock and navigate the Go-to-Market fit stage to achieve explosive growth.
The fund is supported by LPs such as British Patient Capital, Saminvest, KfW Capital, Argentum, Pool Re, and Coeli.
Focus on European scale-ups
Oxx focuses mainly on the scale-up stage in Europe. This segment has a great opportunity, but it is often misunderstood and overlooked by investors. Many SaaS companies building profound and sophisticated products don’t come flying out of the gates commercially, but instead spend a period experimenting and adapting as they take the time to find Product-Market fit. Once it is found, rapid acceleration can take place as long as they can secure the required growth capital to do so.
The firm was founded by Richard Anton and Mikael Johnsson, who have invested in every cycle of SaaS development. The team with experience from various investing and operational backgrounds, makes the firm uniquely placed to identify key opportunities and guide them to success.
Oxx’s portfolio includes a slew of startups, including Funnel, Goodlord, Latana, Gravitee, and Black Swan Data.
Richard Anton, General Partner of Oxx, said: “We invest with evidence-based, absolute conviction in companies with strong fundamentals, where we can generate sustainable, capital efficient and consistent growth. In this challenging market, we are thrilled to have raised a fund that comfortably enables us to action this strategy in supporting promising European scaleups during the next stage of their growth journeys. The trust shown by both returning and new LPs is a testament to our highly selective and hype-resistant approach resonating with the wider community and proves that our commitment to maintaining a strong LP/GP relationship is valued by our stakeholders.”
Mikael Johnsson, General Partner of Oxx, added: “We are now at an inflection point, entering the early innings of the AI paradigm of SaaS. AI is not merely hype, it is the technological driver underpinning a structural shift and spurring another tidal wave of innovation, driving migration from incumbent legacy systems and applications. Therefore, the software industry and SaaS as a business model will continue to have a foundational impact in the future. With this fund, we are solidifying Oxx as a partner and producer of standout SaaS companies for the long term.”
