Dragoneer Investment Group

Dragoneer Investment Group is a private American investment firm founded in 2012 by Marc Stad. It is headquartered at the Letterman Digital Arts Center in San Francisco, California, and manages over $22.6 billion in assets as of 2024. The firm primarily focuses on growth-oriented investments in the technology sector across both public and private markets. It attracts capital from institutional investors such as endowments, foundations, sovereign wealth funds, and family offices.

For public markets, Dragoneer manages long-only strategy funds, while in private markets, it manages growth equity funds, providing funding through non-traditional methods such as secondary stock sales or convertible debt notes. Notable investments include companies like Airbnb, Alibaba Group, DoorDash, Uber, Spotify and Roblox.

Dragoneer has been actively involved in SPAC (Special Purpose Acquisition Company) deals, launching multiple SPACs, including Dragoneer Growth Opportunities Corp. I, II, and III, which raised significant funds and completed high-profile mergers. These include the merger of CCC Information Services and Dragoneer’s SPAC for $7 billion and the merger of Cvent for $5.3 billion.

The firm’s portfolio includes many successful venture capital investments across sectors such as software, AI, fintech, and healthcare. In 2024, Dragoneer invested $200 million in Tekion, an automotive software platform, which pushed Tekion’s valuation to over $4 billion.

Dragoneer has also made diversity investments, with a focus on women-led and Hispanic/Latine-founded companies like Maven Clinic and Carbon Health. The firm has had 49 exits. It continues to invest in high-growth companies globally, with a flexible approach to investment strategies across various stages of growth.

Dragoneer Investment Group was founded in 2012 by Marc Stad in San Francisco, California. The firm started with the objective of investing in high-growth technology companies across both public and private markets. Before founding Dragoneer, Stad worked at various reputable firms, including the Investment Group of Santa Barbara, TPG Capital, and McKinsey & Company.

Initially, Dragoneer focused on a long-only strategy for public market investments, managing funds that concentrated on technology companies. Over time, the firm expanded its approach to include private growth equity funds, allowing it to invest in private technology companies at various stages of development. Dragoneer’s investment strategy involves avoiding traditional fundraising methods. Instead, it utilises methods such as secondary stock sales or convertible debt notes to finance its investments.

In 2020, Dragoneer entered the SPAC market, launching its first Special Purpose Acquisition Company (SPAC), Dragoneer Growth Opportunities Corp. I, on the New York Stock Exchange, raising $600 million. This was followed by the launch of Dragoneer Growth Opportunities Corp. II on the Nasdaq, raising $240 million, and Dragoneer Growth Opportunities Corp. III, which raised $400 million. These SPACs have facilitated mergers with notable companies such as CCC Information Services and Cvent, valued at $7 billion and $5.3 billion respectively.

Dragoneer has made several high-profile investments, including in companies like Airbnb, Alibaba Group, DoorDash, and Uber. The firm also focuses on diversity investments, supporting women-led and Hispanic/Latine-founded businesses.

As of 2024, Dragoneer manages over $22.6 billion in assets and continues to invest in technology-driven companies. Its recent investments include a $200 million funding round for Tekion, an automotive software platform, valuing the company at over $4 billion. Dragoneer remains a significant player in the investment landscape, known for its focus on disruptive and innovative businesses.

Dragoneer Investment Group has a clear investment focus, primarily targeting technology companies that show strong growth potential. The firm invests in both public and private markets globally, with an emphasis on innovation-driven businesses. Its investment strategy is guided by several key criteria:

• Focus on Technology: Dragoneer primarily invests in technology companies, especially those involved in software, fintech, AI, and healthcare. These businesses are seen as having the potential for significant growth and impact in their industries.
• Growth-Oriented Investments: The firm seeks out companies that are in a growth phase, whether they are early-stage startups or more established businesses looking to scale. Dragoneer tends to invest in firms that have already shown strong market traction and a clear growth trajectory.
• Public and Private Markets: Dragoneer manages long-only strategy funds for public market investments and private growth equity funds for private companies. This allows the firm to invest across a broad range of opportunities, from established public firms to emerging private startups.
• Flexible Investment Approach: Dragoneer is open to using non-traditional methods for funding, such as secondary stock sales or convertible debt notes, instead of relying solely on conventional fundraising methods. This flexibility allows the firm to meet the specific needs of the companies it invests in.
• Global Reach: While Dragoneer is based in San Francisco, its investments span across the globe. It has a particular focus on companies in technology hubs such as the United States, Brazil, India, and various European countries.
• Diverse Portfolio: Dragoneer invests across various sectors within technology, including companies involved in e-commerce, financial services, and health technology. Its portfolio includes major companies like Airbnb, Alibaba Group, Uber, and Roblox.
• Commitment to Diversity: The firm also makes diversity a priority in its investments, supporting companies led by women and minority founders. Notable diversity investments include Maven Clinic and Carbon Health.

Dragoneer Investment Group values several key principles in its approach to investing, which guide its decisions and interactions with companies:

• Long-Term Growth: Dragoneer focuses on supporting companies that have strong potential for long-term growth. The firm is committed to helping businesses scale and succeed over time, rather than looking for quick returns.
• Partnership Approach: The firm views its investments as partnerships. It works closely with the companies in its portfolio to provide strategic guidance and support. This collaborative approach helps businesses achieve their growth objectives and navigate challenges effectively.
• Innovation and Technology: Dragoneer prioritises investments in innovative technology companies that are driving change in their industries. The firm values businesses that leverage cutting-edge technology to offer new solutions in sectors such as software, fintech, and healthcare.
• Adaptability: Dragoneer is flexible in its investment strategies. It is open to using various funding methods, such as secondary stock sales or convertible debt, to meet the unique needs of each company. This adaptability allows the firm to support businesses at different stages of growth.
• Global Perspective: The firm values a global outlook in its investments, recognising the potential of technology companies from around the world. Dragoneer’s investments are not limited to the United States but also include businesses from markets like India, Brazil, and Europe.
• Diversity and Inclusion: Dragoneer places importance on supporting diversity in its portfolio. It actively invests in companies led by women and minority founders, believing that diverse leadership contributes to stronger business performance.
• Integrity and Transparency: The firm upholds high standards of integrity and transparency in all its dealings. This includes maintaining clear communication with investors and portfolio companies and adhering to ethical business practices.

Dragoneer Investment Group’s mission is to support innovative technology companies in achieving sustainable long-term growth. The firm aims to partner with businesses that are driving industry change through advanced solutions in sectors like software, fintech, and healthcare. Dragoneer focuses on providing flexible funding options to help these companies scale effectively, whether they are early-stage startups or established firms. Committed to diversity and global reach, the firm invests in businesses across various regions and actively supports companies led by women and minority founders. Dragoneer values integrity, collaboration, and transparency in all its partnerships and investment activities.

Dragoneer Investment Group has built a diverse portfolio of high-growth technology companies across various industries. The firm's investments span globally and include companies known for innovation and strong market presence.

• Airbnb: A global online marketplace for short-term lodging and travel experiences, connecting millions of travellers with unique accommodations worldwide.
• Alibaba Group: A leading e-commerce and technology conglomerate based in China, offering services across digital marketplaces, cloud computing, and financial technology.
• AppFolio: A cloud-based software provider for property management, enabling property managers to streamline operations and improve tenant relationships.
• Atlassian: An Australian enterprise software company known for its project management and collaboration tools, including Jira and Confluence, widely used by development and operations teams.
• Chime: A U.S.-based digital bank offering fee-free banking services, including spending accounts, savings accounts, and early access to direct deposit payments.
• Compass, Inc.: A real estate technology company that provides a platform for buying, renting, and selling properties, leveraging technology to support real estate agents and clients.
• CRED: An Indian fintech platform that rewards users for paying their credit card bills on time and offers various financial services, including personal loans and investment options.
• Databricks: A data and AI company that offers a unified analytics platform, enabling organisations to process large-scale data and build machine learning models.
• Discord: A communication platform originally designed for gamers, now widely used for community building and collaboration through voice, video, and text.
• Dollar Shave Club: A direct-to-consumer company offering grooming products through a subscription model, known for its innovative marketing and customer-centric approach.
• Domo: A business intelligence software company that provides real-time data visualisation and analytics tools for enterprises to make data-driven decisions.
• DoorDash: A leading on-demand food delivery service in the United States, connecting consumers with local restaurants and providing delivery logistics.
• Etsy: An online marketplace specialising in handmade, vintage, and unique goods, connecting millions of buyers and sellers around the world.
• Flipkart: One of India’s largest e-commerce companies, offering a wide range of products, from electronics and fashion to home essentials.
• Glassdoor: A job search and company review platform that provides insights into workplace culture, salaries, and employee experiences for job seekers.
• Gusto: A U.S.-based HR and payroll platform that simplifies employee benefits, payroll, and tax filing for small and medium-sized businesses.
• HackerOne: A cybersecurity company that connects businesses with ethical hackers to identify and resolve security vulnerabilities through bug bounty programs.
• Hortonworks: A data management company that develops, distributes, and supports open-source software to process large volumes of data.
• Instacart: A grocery delivery and pick-up service in the U.S. and Canada, partnering with local retailers to deliver groceries and household items to customers’ doors.
• Klarna: A Swedish fintech company offering buy-now-pay-later services, allowing consumers to split payments over time and providing flexible payment options.
• MercadoLibre: The largest e-commerce platform in Latin America, offering online marketplaces, payment solutions, and logistics services across the region.
• New Relic: A cloud-based observability platform that helps businesses monitor and manage their software performance and infrastructure.
• Nubank: A Brazilian digital bank offering a range of financial services, including credit cards, personal loans, and digital payment solutions.
• Procore: A construction management software company that helps construction professionals manage projects, resources, and financials more effectively.
• Redfin: A real estate brokerage that uses technology to make buying and selling homes easier, offering lower commission rates and enhanced customer service.
• ResearchGate: A social networking site for scientists and researchers to share papers, ask and answer questions, and find collaborators.
• Roblox: An online platform that allows users to create and share games and experiences, popular among younger audiences for its user-generated content.
• Slack: A business communication platform that offers messaging, file sharing, and collaboration tools, widely used by teams for workplace communication.
• Snowflake: A cloud-based data warehousing company that enables businesses to store, process, and analyse data across different cloud environments.
• Spotify: A global digital music streaming service that provides access to millions of songs, podcasts, and other audio content across various devices.
• Strava: A social network for athletes that tracks and analyses physical activities, such as running and cycling, using GPS data and community challenges.
• Teabox: An Indian direct-to-consumer tea company that sources fresh teas from the Himalayas and delivers them worldwide, ensuring premium quality.
• Uber: A global ride-hailing and delivery service provider, offering transportation, food delivery, and freight services across numerous cities worldwide.
• UiPath: A robotic process automation (RPA) software company that helps businesses automate repetitive tasks and improve operational efficiency.
• Wealthfront: An automated investment service that offers financial planning, investment management, and banking solutions, catering primarily to millennials.
• Whatfix: A digital adoption platform that helps organisations improve the user experience of their software applications through in-app guidance and support.