DSW raises over £2m for new fund to back early stage tech companies

DSW Ventures, the North West-based venture capital arm of advisory firm Dow Schofield Watts, has successfully closed its second Seed Enterprise Investment Scheme (SEIS) fund, securing more than £2 million – exceeding its initial target.

The firm claims this is evidence of “strong investor demand” which “underscores confidence” in DSW Ventures’ strategy of backing early-stage technology companies across the UK regions and is close to securing two investments.

Building on the success of its first SEIS fund, which invested £1.9 million in six innovative start-ups across Northern Ireland, Scotland, and the North of England, Fund 2 will continue targeting high-potential businesses and university spin-outs. Fund 1’s portfolio companies are pioneering technologies in areas such as therapeutics addressing critical unmet needs, advanced diagnostics, and cutting-edge B2B software solutions.

Leveraging DSW Ventures’ established network within the regional early-stage funding ecosystem, Fund 1 attracted £5.6 million in total investment. Many portfolio companies are now securing additional capital from co-investors, with some already in discussions with next-stage investors at significant valuation uplifts.

The strong demand for Fund 2 highlights the appeal of DSW Ventures’ focus beyond the London-Oxford-Cambridge “Golden Triangle.”

The firm says a hands-on approach has also resonated with founders, ensuring a robust pipeline of investment opportunities. DSW Ventures expects to complete its first two Fund 2 investments in the coming weeks.

Keith Benson, partner of DSW Ventures, commented: “We’ve been very impressed by the quality of deal flow for SEIS investments. Fund 1 has invested in some incredibly exciting technologies conceived and developed in the UK regions.  Building and maintaining this deal flow, executing investments, and providing market-leading support to our portfolio companies requires significant effort and resources. The successful deployment of Fund 1 and the subsequent raising of Fund 2 are a testament to the skills, capabilities, and sheer hard work of our talented team.”