B2B software investor Oxx has raised $133m to back European SaaS companies from series A funding rounds onward.

The London and Stockholm headquartered VC invests across software applications and infrastructure, focussing on businesses in data convergence and refinery, the future of work, financial services infrastructure, user empowerment, and sustainable business.

Co-founders and General Partners Richard Anton and Mikael Johnsson have been partners for seven years, and believe Europe presents a unique opportunity as founders start their second, third or fourth B2B software business.

The firm has already invested in the likes of Funnel, which automates marketing performance reporting and intelligence for businesses, enterprise performance monitoring platform Apica, and Codility, a comprehensive tech recruiting platform for hiring at scale.

Oxx said it wants to avoid the ‘growth at all costs’ mindset of B2B software investment, instead encouraging its portfolio companies to build sustainable businesses that can retain market dominance. Anton said the European market was a unique combination of “entrepreneurial zeal, more and cheaper tech talent than the US, and generations of success are fast creating a world-beating software hub.”

“Not all SaaS companies fit the traditional VC mould, and while we absolutely support companies to grow well, we don’t push them for growth at all costs,” said Anton.

“Oxx’s raison d’être is to make sure that companies that already have strong commercial traction are primed and ready to drive continued sustainable growth towards market dominance.”

The fund is backed by leading investors, including British Patient Capital (£25 million) and a number of institutions, family offices and high-net-worth individuals. It is also backed by entrepreneurs that the team has worked with before.

“As software eats the world, there can be thousands of winners,” said Johnsson.

“These future winners can be identified now: They have an A-grade founding team with deep understanding of the customer problem they are solving.

“They have a fantastic defensible product that is loved by users, and have spent time fine-tuning a unique market position and a scalable go-to-market strategy. Having been able to establish market leadership within a niche or certain geography, they are now ready to prove themselves at scale.”