Vortex raises €75 million for new tech fund
Amsterdam, March 9, 2021
Specialist investor Vortex raised €75 million for its third fund. With this new fund, Vortex will continue to focus on small and medium-sized software and tech companies in the Netherlands and Belgium. The first investment from the new fund is a buyout of integration specialist Enable U together with management. Enable U, based in Amsterdam, is a fast-growing software specialist that supports its customers with the implementation and maintenance of secure integrations through its integration platform.
Vortex is an entrepreneurial investment fund with a focus on small and medium-sized tech companies with high growth potential. Vortex invests in software, internet and tech-driven companies with an annual turnover of between €4 million and €40 million. The team brings business experience combined with deep technical expertise to support ambitious entrepreneurs and management teams as an active partner in realizing their growth ambitions. Over the past eight years, Vortex has made 18 platform investments with this strategy and over 20 add-on investments.
Vortex typically participates in companies in the pre-exit phase with a strong focus on organic growth and buy-and-build (growth through acquisitions). The Vortex team and management work closely together to further professionalize and to achieve the required scale to become a market leader or to further expand its leadership position. Former investments Cars on the Web and Mascus are, partly due to their leadership position in Europe, instrumental in realizing the expansion strategy for its international buyers. Investors in Vortex are (IT) entrepreneurs, family offices, institutional investors and the Vortex team itself. Most of this new fund comes from existing investors, with several new parties and entrepreneurs joining.
Over the past ten years, the number of transactions in IT services has increased from about a 100 in 2009 to over 400 transactions in 2020, an increase of 12% per year. Evert Jan de Groot, partner at Vortex: “We see enormous and growing potential in our segment where we can make a difference with our active approach and deep sector knowledge. Many of the markets we look at are fragmented, consolidation and upscaling is the next step.”
Acquisition Enable U
The partnership with Enable U is the first investment from Vortex’ new fund. Enable U is an Amsterdam based IT services provider with about seventy employees. Enable U provides its 300 customers “as a service” with integrations between applications and other information systems. Enable U offers all the necessary software and knowledge for API management and integrations between a wide range of applications and data systems. Enable U has a strong presence in the public domain.
De Groot: “Enable U is a fast-growing and technology-driven company that combines deep domain knowledge with a scalable business model, a perfect match with Vortex’ investment focus. The founders and management have successfully grown their business in the attractive integrations market. The relevance of building and maintaining secure integrations is growing every day. Vortex supports Enable U in its further growth, both organically and through acquisitions. Enable U has built a large and loyal customer base that will benefit from the increasing scale.”