Draper Esprit announce £160 million of permanent capital to invest in Europe’s most ambitious teams
Posted by Isabella Cookson, 02 Jun 2017
Today, we are delighted to announce we have raised a further £160 million to invest in Europe’s best startups. See the official RNS announcement here.
We don’t operate a traditional VC model (with five years to invest and five years to show returns), we have raised permanent capital. The money we are announcing today will be deployed across approximately one year, not five. If you think in terms of a typical five- year fund, this is actually the equivalent of a £800 million ($1 billion) fund. This will enable us to realise our vision of providing long term, patient capital to help the best entrepreneurs build businesses that compete globally.
Why the patient capital model matters for entrepreneurs:
We won’t back out of the business because our investors demand a return within 5 years. This happens more than you would think. The best businesses can take 20 years to build- short term strategic exits should only be pursued if management desire or for market dynamics. It should never be for a lack of scale up capital to support that direction.
- We don’t need to spend all our time fundraising, we can spend it helping and growing the portfolio. When we make returns, they don’t go to our LPs, they head back to the balance sheet, ready to be re-invested into more excellent startups. We want to help build a sustainable ecosystem in Europe
- We can follow on. When a brilliant company has to raise a larger round of funding, often their current investors don’t have the capital, or the mandate, to follow on. There has been much written on how scale ups are lacking funding in Europe, compared to the US. We want to remedy that. 70% of this money will be used for follow-on investments.
- We now have the opportunity to bring in larger rounds from our strategic shareholders, including Woodford Investment Manageement, Baillie Gifford and Invesco Perpetual. If you’re reading this and your business is earlier stage, you might not be thinking about this now, but this will become more important later down the line.
Since our IPO last June we have backed some of Europe’s most exciting companies, including Graze, Trustpilot, Clue, Graphcore, Push Doctor and Perkbox. We will be using this money to continue investing in exciting businesses across hardware, digital health, SaaS and consumer technology at series A and B and beyond.
We have also built out a world class team, who have a history of building global businesses and are dedicated to helping European technology entrepreneurs build leading businesses to change the world. We do what we love, and we can’t wait to meet the next generation of entrepreneurs building the teams, products and services of the future.
RavenPack, the big data analytics platform used by 70% of the world’s leading hedge funds, secures $5 million backing from Draper Esprit
Posted by Isabella Cookson, 21 Mar 2017
RavenPack, the big data analytics provider for financial services, is today excited to announce it has secured $5 million backing from Draper Esprit (AIM:GROW, ESM: GRW), a leading venture firm involved in the creation, funding and development of high-growth technology businesses.
Privately financed to date, this is the first financing that the company has sought from a venture capital firm. The money raised from Draper Esprit will fast-track RavenPack’s mission to transform the way investors gain insights from unstructured data. International investment banking firm EOC Partners acted as advisor to RavenPack on the transaction.
“RavenPack has become a vital source of information for quantitative investors,” said Yin Luo, Vice Chairman of Wolfe Research and Wall Street’s top-ranked quantitative analyst (six years in a row by the Institutional Investor Equity Research Survey). “The RavenPack platform bridges the gap between systematic and fundamental investment managers exploring market anomalies and looking for an edge from unstructured big data.”
RavenPack is a high growth company with more than 100 customers worldwide. With over 50 developers, data scientists, and business professionals, the company has offices in New York, London, and Marbella (Spain). The company plans to double the size of its team, further develop its flagship big data analytics platform, and reach new verticals within financial markets.
“Receiving the backing of one of the largest and most active VC firms in Europe is a strong validation of our vision to help people make better decisions using big data,” said Armando Gonzalez, CEO of RavenPack.
“RavenPack’s core value lies in turning unstructured big data into real-time actionable insight to generate significant results. This is particularly relevant for banks, hedge funds, and asset managers who are fast becoming data hoarders. Their new platform will empower investors across the board to better understand volatile markets. We’re excited to be investing in a fintech company with a brilliant track record and look forward to working with them as they become an important cornerstone in the big data ecosystem.” Simon Cook, CEO Draper Esprit
– ENDS –
Notes to editors:
RavenPack (http://www.ravenpack.com) is the leading big data analytics provider for financial services. Financial professionals rely on RavenPack for its speed and accuracy in analyzing large amounts of unstructured content. The company’s products allow clients to enhance returns, reduce risk or increase efficiency by systematically incorporating the effects of public information in their models or workflows. RavenPack’s clients include the most successful hedge funds, banks, and asset managers in the world.
About Draper Esprit
Draper Esprit (http://www.draperesprit.com) was founded in 2006, and is one of the largest and most active VC firms in Europe, helping entrepreneurs to build global ground-breaking technology companies. In 2016 it moved its primary funds into a listed PLC model (LSE: GROW.L) in order to take a longer term, multi-stage, patient capital approach. In recent years, Draper Esprit’s exits have generated more than $3 billion in combined enterprise value. Draper Esprit is the exclusive Western European member of the Silicon Valley-based Global Draper Network with offices around the world, with portfolio companies including Baidu, Skype, Space X, Tesla and Yammer and other world leading companies.
Director of Sales & Marketing
+1 646 277 7339
Draper Esprit PLC Contacts:
Head of Marketing
+44 (0)20 7931 8800