First closing for Digital Networks

Digital Networks, the Pan-European venture capital firm, has had a first closing of its European Digital Infrastructure Fund I at E47.5m.

The investor group includes Citigroup Venture Capital (CVC) as the anchor investor, and other institutional and private investors such as LGT Capital Partners, IHAG Holding, Schroder & Co Bank AG and the European Investment Fund. A final close for the fund is expected later this year at E75m.

Digital Networks, which was launched last September, undertakes early and late stage venture capital investments in hardware, software and service companies in the European communications information sector. The fund, which primarily covers the Germanic, Nordic and UK market, is looking at investments ranging between E1m-10m.

Nenad Marovac, CEO and managing partner of Digital Network, believes that now is the time to begin to invest “selectively and cautiously”, at a time when the pricing of companies has come down substantially.

At the same time Marovac is aware that it is much more difficult for companies to survive in today’s climate. Therefore he is looking for companies with viable business plans. “We are looking at companies that are offering “must have” products or services in this environment as opposed to “concept” ones. Those than can demonstrate real customers and real demand for their products and services,” he said.