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The Software as a Service (SaaS) industry is not just an exciting place to invest; it's a realm of relentless innovation and growth. Over the past decades, the enterprise software landscape has undergone a profound transformation, evolving from on-premise solutions to cloud-based services, and now we are on the inflection point of AI-driven SaaS. This seismic shift isn't just a passing trend; it represents a fundamental change that's set to shape the future of business and technology. It is to this backdrop that we are thrilled to announce that we have raised $190m to continue our mission to help European scaleups unlock and navigate the scale-up stage and achieve explosive growth.
Not only are we proud to announce our new fund generation at a time when the fundraising climate is challenging, this fund generation also represents a 40% increase since our last announcement. The trust imbued in us by both long standing and new investors is a testament to the work we are doing and the direction we are taking Oxx – both in terms of investments made and building a team for the future. Since our last announcement, the full team has doubled, Bob Thomas and Phil Edmondson-Jones have become Partners and Ingrid Bonde Åkerlind has become a Principal.
This era is the new age of AI, or as we refer to it, the AI paradigm of SaaS. It is our firm belief that AI is the driving force behind a transformative shift in how software is built and used; it’s not just a buzzword or hype. The advent of AI is unleashing a tidal wave of innovation that's transforming industries across the board, compelling organisations to reevaluate their existing systems. As organisations migrate from legacy systems, there's a growing market for SaaS providers who can offer and monetise AI-powered solutions.
At the same time, the European tech landscape is rapidly solidifying as a vibrant and promising investment destination in the SaaS sector on the back of megatrends such as increased digitisation, talent mobility and rise of technical education clusters. We are seeing a growing pool of serial founders and a rich talent pool of engineers and tech professionals across Europe. As of Q3 2023, the majority of exits in Europe were from the software industry.
Oxx’s specific focus is on backing European SaaS companies at the scale-up stage. This is a particular area where there is a great opportunity, but one that we find is often misunderstood and overlooked by other investors. We recognise that 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. Though once Product-Market fit is found, they can achieve the same rapid acceleration as companies that have had a faster route to Product-Market fit. What companies at this stage need to achieve this acceleration in growth is the right support and the required growth capital. However, in Europe access to capital for these businesses is not at the same level as in the US, which presents a great opportunity.
Finding promising companies at the scaleup stage and helping them realise their potential is what drives us. In this second generation of Oxx funds, we will continue to invest in European companies with exceptional founders and ideas that will make a difference, and we will do so in the Oxx way:
With absolute conviction and as main stakeholders, actively taking a role in the success of our companies.
By sharing our deep knowledge and expertise for the benefit of our portfolio companies and the wider SaaS community
Through providing unfettered access to our wide network of specialist advisors, helping companies unlock the knots on the journey to growth.
We look forward to partnering with the next generation of European SaaS founders, and can’t wait to see what the future holds.
