Posted by Isabella Cookson, 30 Jan 2018
Draper Esprit (AIM: GROW, ESM: GRW), a leading venture capital firm investing in high growth digital technology businesses, has announced the acquisition of Seedcamp Funds I and II ("the Funds") for £17.9 million (€20 million). ("the Transaction"). As a result, the Company has acquired stakes in high profile growing technology companies including Transferwise, a leading UK based Fintech business. The portfolio also includes a number of promising companies including Codacy, Edited, Erply, Fishbrain, Codility, Winnow, Codeship and Try.com. The portfolio's last reported NAV was £23.5 million (€26.3 million), resulting in an increase of £5.6 million (€6.3 million) (~7p per share) for the Company, against the latest reported NAV per share as at 30 September 2017 of 372p (NAV per share, excluding goodwill, of 344p). Transferwise, the international money transfer platform, will be added to the Company's Core Portfolio. Co-founded by Taavet Hinrikus and Kristo Käärmann, TransferWise launched in 2011. It is one of Europe's most successful fintech startups having raised $117m in funding from investors such as Andreessen Horowitz, Sir Richard Branson, Valar Ventures and Max Levchin of PayPal. Over a million people use TransferWise to transfer over $1.2 billion every month. Draper Esprit's other core portfolio companies include Trustpilot, Clavis Insights, Sportpursuit, M-Files, Graze, Lyst, Conversocial, Push Doctor, Graphcore and Perkbox. An overview of other notable holdings from this Transaction are detailed below. Following the deal, Draper Esprit will continue to invest further in the portfolio to help it develop and grow, working closely with both the team at Seedcamp and within the portfolio companies as they grow. The Seedcamp management team will continue to work closely alongside the Draper Esprit team to manage the portfolio and to create further value for founders and investors in the Funds. To date, the combined Seedcamp Funds I and II, raised in 2007 and 2010, have returned over 4x capital to their investors. Seedcamp also continues its management of other Seedcamp funds unrelated to this Transaction. Simon Cook, CEO Draper Esprit plc commented: "Although principally a primary series A, B and C VC Growth investor, we have also been very active over the years as a secondary tech investor in Europe having acquired a number of well-known VC portfolios and increasingly taking large direct stakes in later stage companies. Together with our recently announced seed fund of funds strategy we can offer long term patient capital solutions for all European tech companies and their investors outside of the constraints of a typical 5+5 year fund. "We have a great relationship with Seedcamp and recently invested directly in their Seedcamp IV fund to give our investors access to seed stage opportunities. This acquisition further bolsters our growing secondary business; and we are excited to work with a really good portfolio of European technology companies including Transferwise, one of Europe's most successful startups." Reshma Sohoni, Seedcamp Co-founder & Managing Partner, commented: "We are thrilled to help our Seedcamp companies scale to the next level with the support and firepower of Draper Esprit. As the Seedcamp team continue to manage Funds 1 and 2, Draper is the perfect partner to help us manage these businesses moving forward and ensure we continue to go above and beyond in delivering returns to our LPs." Carlos Eduardo Espinal, Seedcamp Managing Partner, added: "We see this as a great outcome working alongside experienced and knowledgeable investors who've supported us for many years. We are always looking at innovative ways to deliver exceptional returns to our LPs and believe this transaction is a win-win for everyone involved. We look forward to continuing to work with the growing companies and founders from our first and second funds with Draper's added horsepower." Other notable companies in this Transaction: Codacy Based in Lisbon, Portgual this is an automated code review platform which raised a further $5.1 million in Series A funding from EQT Ventures, Faber, Caixa Capital, Join Capital and Seedcamp. Codacy is used by hundreds of companies, including Paypal, Adobe, Qlik, Cancer Research UK and Deliveroo. Editd Editd creates real-time data analytics software for apparel retailers and brands to monitor the clothing retail market worldwide. The company has clients across the globe including in the UK, US, China, Australia, South Africa and South America. Erply Erply is an enterprise software company focusing on point of sale and inventory management technology and was founded in 2009. Fishbrain Fishbrain is social network and app for fishing. Other investors in the company include Northzone, , Active Venture Partners, GP Bullhound and Edastra Venture Capital. Codility Codility is a global leader in tech recruiting assessments. In June it announced it had become the most widely used platform to help companies evaluate and hire the best tech talent having assessed over 4 million candidates. Winnow Winnow is a UK startup that has developed smart kitchen technology to help commercial kitchens reduce waste. Customers include IKEA, Compass Group and AccorHotels. It recently announced it raised a further $7.4 million from Circularity Capital, Mustard Seed and D-Ax. Codeship Based in Boston and with offices in Vienna and Berlin, Codeship offers Continuous Integration products in the cloud that integrate with the existing DevOps stack and enables clients to accelerate time-to-market of products and features. Try.com Try.com is an e-commerce platform that allows you to try clothes before you buy from any online store.
Draper Esprit (AIM: GROW, ESM: GRW), a leading venture capital firm involved in the creation, funding and development of high-growth digital technology businesses, today announces its Interim Results for the period ended 30 September 2017. Financial highlights · Gross Primary Portfolio value* increased by 44% to £162.8 million (31 March 2017: £112.7 million) · Net Assets including goodwill, of £266.8 million (31 March 2017: £150.7 million) · NAV per share of 372 pence (31 March 2017: 370 pence) · NAV per share, excluding goodwill, of 344 pence (31 March 2017: 319 pence) · Profit after tax of £20.9 million (31 March 2017: £33.2 million) · Additional capital raised of £100.0 million in plc (£95.3 million net) with £92.0 million cash on balance sheet at period end Operational highlights · £26.5 million deployed by plc with a further £12.0 million from EIS/VCT funds into next generation opportunities · The Group has invested in 3 new and 6 existing portfolio companies. · Gross primary portfolio fair value grew by 22% · Core Portfolio** holdings have increased by 55% (£17.7 million invested and £25.4 million fair value growth) · £100.0 million additional capital raised from new and existing shareholders by plc and £35.0 million across the EIS and VCT funds. · Hired experienced Partner, Ben Tompkins who was formerly Managing Partner at Eden Ventures and tech investment banker at Broadview/ Jefferies where he was co-head of the Global Software, Services and Media practice. *Gross primary portfolio is the gross value of the Company's investment holdings before deductions for carry and any deferred tax. ** Core Portfolio holdings is comprises: Graze, Trustpilot, M-Files, Conversocial, Lyst, Sportpursuit, Clavis Insights, Perkbox, Push Doctor and Graphcore Simon Cook, CEO Draper Esprit commented: "We set ourselves a financial benchmark of achieving 20% year on year growth in portfolio value in line with our historical record and are consistently achieving this. At the half year we have already delivered 22% growth in the portfolio and stand well positioned to deliver over the full year with significant cash balances remaining to deploy. "Importantly, we are retaining the ability to hold and grow our companies for longer than our non-listed competitors can and with larger sums available for later rounds to maximise the opportunity and build large successful European technology businesses. We continue to find exciting new opportunities as technology innovation shows no sign of slowing, and our recent seed funds initiative is helping to forge key relationships at the very earliest stages. "We are demonstrating that our model in action continues to work, with Net Asset Value growing substantially and we are on target to hit our expectations across all metrics for the year end."
Verve, co-founded by Callum and Liam Negus-Fancey, is building a global platform that enables people to sell products they love to their friends in exchange for rewards. Over the last 12 months Verve has achieved significant success within the live entertainment industry, growing from 170 to 450 clients, selling more than 500,000 tickets globally and securing major partnerships with some of the best ticketing companies around the world. With $28.5m raised to date, the company will use the capital to continue its global expansion within the live entertainment sector, as well as enter new markets.
In a globalised and noisy world, customers increasingly crave authentic and curated experiences. Nothing fulfils this more than a recommendation from a friend based on both their accumulated knowledge of their own passion, and their understanding of your evolving tastes and idiosyncrasies. We all have experts in our networks who can access faster than ever before — the friend who is obsessed with computers, the one who knows all the best restaurants or that person who you turn to for fashion advice. These are the people who are the most valuable when making a purchase decision. Verve enables brands to harness the power of these recommendations, turning word of mouth into a reliable and scalable sales channel for the first time.
Verve’s clients include Live Nation, AEG, C3, Bonnaroo, React Presents, Bestival, Digital Dreams, Electric Zoo and many more.
Simon Cook, CEO of Draper Esprit, says: "Callum and Liam have built a world-class team which we back with full confidence. We very much believe in where Verve is heading. Today’s audiences are becoming immune to traditional advertising and increasingly prefer to discover through friends and people they trust. Verve has already proven word of mouth is a scalable and powerful tool for live entertainment, and we will support them in taking this channel to other markets and sectors.”
Leila Zegna, founding partner at Kindred, says: "Kindred is delighted to have increased its commitment to Verve as a part of this financing round, joining a strong global venture capital brand in Draper Esprit.”
“Since our first investment in Verve in 2016, we have been continually impressed by the buildout and strength of the management team, as well as the consistent execution against ambitious product and commercial targets. Going forward, we are excited about Verve's ability to not only dominate the festivals market but also penetrate the enormous opportunities within music and sport on a global basis."
"We were very impressed with the success of the Krewe of Voodoo and their ability to get tickets into more fans hands and helping grow Voodoo Music + Arts Experience. We look forward to working with them again this year!”
Patrick Dentler, Marketing Director, C3 Presents
“Verve has successfully grown our network, encouraging our biggest fans to join us in selling tickets for the best festivals in the world.” - Festival Republic
CAMBRIDGE,UK,13TH SEPTEMBER 2017: Ieso Digital Health, the UK’s largest provider of online mental healthcare, today announces the successful closure of an £18 million funding round to accelerate growth in its home market and the commercialisation of its transformative technology platform in the US. The funding round is the largest amount raised by a digital behavioural health business in Europe. Ieso is already transforming mental health delivery in the UK, by making high quality, evidence-based cognitive behavioral therapy (CBT) available to more than 9 million people. Ieso is available through the NHS as part of Improving Access to Psychological Therapies (IAPT). Relative to international duration of treatment, Ieso is able to increase the speed at which people recover in treatment by as much as 50%. By the end of 2017, more than 100,000 therapy hours will have been delivered, making Ieso the UK’s largest provider of online CBT. Ieso’s published and auditable outcomes have been consistently superior to NHS averages in the most commonly presenting mental health conditions. Ieso’s breakthrough service has recently been introduced in the US. The business has assembled one of the most experienced mental healthcare management teams to drive adoption in both markets comprising world class data scientists, renowned Artificial Intelligence development experts, first class clinicians, outstanding therapists and highly experienced executive leadership. Speaking about this announcement CEO Dan Clark commented: “This financing is a great vote of confidence in Ieso’s ability to become a global leader in mental health delivery and our technology which lies at the intersection of online evidence-based CBT, dynamic artificial intelligence learning, real time therapist support and mobile accessibility, ultimately creating high quality, accessible CBT therapy. Up to 60% of people in the US alone have unmet behavioral health needs. This presents a major opportunity for Ieso to make a radical impact on healthcare outcomes and costs. With our technology and clinical data science we are simultaneously improving patient outcomes and reducing costs to the healthcare system.” This funding round introduces leading venture capital investor Draper Esprit to the company, who co-led this round, committing £7.5 million alongside existing investor Touchstone Innovations, who invested £8 million. The round will have two closes to permit investment from other current investors including a number of significant UK business angels and the Ananda Social Venture Fund, whose Investment Director, Lennart Hergel added “The Ieso story is a textbook example of social impact investment working in partnership with commercial technology funding as the company scales.” Commenting on the partnership with Draper, Ieso CEO Dan Clark notes: “Draper Esprit's reputation in digital health is second to none and we are delighted to have them on board with us at this pivotal stage in our development. As one of Europe’s most active sector investors, their experience and track record in developing growth stage businesses mean that they will contribute as true partners for the journey ahead.” Dr Vishal Gulati, VC Partner at Draper Esprit said: “Ieso is a perfect example of the kind of company we like to invest in in the digital health space. It has a proven and experienced management team; a strong clinical platform; strict adherence to the evidence base; and a scalable model that is delivering strong outcomes with high levels of quality control. We have been watching their progress for some time and their data science approach is very impressive. We are really pleased to be working with Dan and his team and with Touchstone and Ananda our co-investors in this round.” Inga Deakin, Principal at Touchstone Innovation commented: “Since our first investment in 2013, Touchstone has supported the company from early traction in the NHS, which has a world-leading CBT delivery infrastructure and ambitious targets for delivery of treatment to patients. The Company has outstanding clinical quality and, with over 16,700 patients treated, has built ground breaking data science and artificial intelligence capabilities to leverage that clinical experience and continue to improve health outcomes. We are delighted our initial faith and investment thesis has been confirmed by an experienced investor such as Draper to join us in the next phase of growth.” This is a significant milestone for Ieso Digital Health and allows it to accelerate commercialisation and product development activities to better serve the millions of patients currently unable to access high quality, clinically - proven mental health care in the community.
XMOS Ltd. (www.xmos.com), a leader in voice capture solutions for the consumer electronics market, has today announced its $15M Series-E funding round. The round was led by Infineon Technologies with additional funding from existing investors Amadeus Capital Partners, Draper Esprit, Foundation Capital and Robert Bosch Venture Capital. Commenting on the funding, Mark Lippett, President and CEO at XMOS said, “The conclusion of our Series-E funding is a significant milestone for the business. XMOS is ideally positioned at the crossover between embedded voice processing, biometrics and artificial intelligence, and the funds will enable us to execute our ambitious product development plans. I am particularly delighted to welcome Infineon Technologies as a strategic investor in the business. We have worked closely with the Infineon team on groundbreaking sensor fusion technologies; the investment really strengthens our strategic partnership.” “Through this investment, Infineon will further explore the high potential of voice control and is well positioned to address future use cases like speaker authentication or contextual awareness” added Andreas Urschitz, President of the Power Management & Multimarket (PMM) Division at Infineon. “This was the logical next step, as we have identified HMI as a strategic growth area.” Bill Elmore, General Partner and Founder, Foundation Capital and Chairman of the XMOS Board, said “The addition of Infineon as a strategic investor in this funding round validates the progress XMOS has made in this rapidly growing market. The outstanding strategic and operational alignment between the two organizations has already delivered compelling technology which is at the forefront of human-machine interfacing. This funding round, and the strategic partnership at its heart, will further consolidate XMOS as the leader in voice capture.” About XMOS XMOS is a leading supplier of voice and audio solutions to the consumer electronics market. The combination of its unique silicon architecture and highly differentiated software positions it at the interface between voice processing, biometrics and artificial intelligence. For more information, please visit www.xmos.com
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: About RavenPack 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. RavenPack Contacts: Marc Pandolfi Director of Sales & Marketing +1 646 277 7339 email@example.com Draper Esprit PLC Contacts: Isabella Cookson Head of Marketing +44 (0)20 7931 8800
Innovative electric vehicle charge point supplier, putting infrastructure in place to fuel EV boom in the UK and overseas ● POD Point launches new crowdfunding round as part of £9m fundraise led by Draper Esprit ● Investment to expand vital charging infrastructure for electric vehicles across UK ● Mission for EV charge point everywhere people park for more than hour by 2020 LONDON: POD Point, the UK electric vehicle charge point supplier, has launched a new £1.5m crowdfunding round, part of a larger £9m fundraise led by Venture Capitalist Draper Esprit. The funding round sees Draper investing £3m for new shares and £2m for secondaries alongside Barclays Capital who are providing £2m of venture debt and £550k additional equity investment has been secured from angel investors. POD Point has made £1.55m worth shares available to the public through Equity Crowdfunding platform Crowdcube. Over the past two years, POD Point has already successfully raised £3.3m in two crowdfunding rounds, through Seedrs and Crowdcube.* The new investment will be used to expand the vital charging infrastructure necessary for widespread adoption of electric vehicles in the UK. POD Point’s target is to double turnover to £9m in the 2016/17 financial year and benchmark market growth thereafter. POD Point is already a well established, leading player in this country’s EV sector, having manufactured and sold over 27,000 charging points since it was founded in 2009. This new investment is intended to fund the next stage of business growth, directly creating 50 new jobs in the UK, and helping to lay down the bedrock EV charging infrastructure to fuel the expansion of the market both here and in Europe. Following recent partnerships with Barratt Homes, Holiday Extra and Hyundai, POD Point intends to have one of its stations installed everywhere people park for an hour or more by 2020. Globally, the Electric Vehicle market is going from strength to strength, driven by advances in technology, infrastructure developments and cost efficiencies. Here in the UK, over 38,000 plug-in vehicles were registered in 2016, compared to just 1052 over the same time period in 2011, a five-year growth rate of almost 3500%.** Tesla, the most world renowned player in the EV space, recently announced its Model 3, entry level offering for EV drivers, has already attracted over 400k+ deposits. According to some reports, electric and hybrid vehicles are expected to make up over 7% of all new vehicle sales by 2020, and environmental pressures are already boosting this growth. Policies in the UK are set to create clean air zones in at least five cities by 2020, and in Europe the German Parliament has even moved to ban sales of new combustion engine powered vehicles by 2030. Little surprise then that investors are moving to capitalise on an industry that, globally, has a positive outlook for the coming years. “This is a significant milestone for a sector that has been gathering momentum for some time,” said Erik Fairbairn, CEO, POD Point. “The way people use cars is changing and how they are powered is at the epicentre of that. Travel shouldn’t damage the earth, which is why we are building the most advanced intelligent charging network in the UK, the POD Point Open Charge Network.” Simon Cook, CEO of Draper Esprit said “POD point is leading the charge in the EV infrastructure market in the UK and Europe. We not only think that the EV market will develop at pace over the next decade, but that POD point is set to play a significant role in enabling adoption. We are proud to be backing a company who are committed to creating cleaner cities and mitigating climate change." Sean Duffy, Head of Technology, Media and Telecoms at Barclays, said: “We’re very attracted to POD Point. It’s a very good company; it’s a high growth business in a high growth market.” Luke Lang, CMO and Co Founder at Crowdcube said: “POD Point is a perfect example of co-investment, with crowdfunding forming part of a larger investment round alongside VCs and institutional investors. We’re seeing more of this at Crowdcube, especially with businesses coming back to the platform for follow-on funding rounds.” Crowdcube Risk Warning:- Investing involves risk and should be done only as part of a diversified portfolio. Investing equity in startups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. Approved as a financial promotion by Crowdcube Capital Limited which is authorised and regulated by the Financial Conduct Authority (No. 650205). - Ends - Notes to Editors: * POD Point funding timeline: December 2014 - £1.45m via crowdfunding platform Seedrs January 2016 - £1.81m via crowdfunding platform CrowdCube November 2016 - £x.xm in via crowdfunding platform Crowdcube, venture capital (Draper Esprit) and debt finance (Barclays) February 2017 - £9m in via crowdfunding platform Crowdcube, venture capital (Draper Esprit) and debt finance (Barclays) ** The number of plug-in vehicles sold (year to date) in 2011 totalled 1052, compared to 2016 at 30,489 to date. This has created a growth rate of 2898%
Draper Esprit (AIM: GROW, ESM: GRW), a leading venture capital that backs high-growth technology businesses, is pleased to announce that Jonathan Sibilia has been appointed as Head of Secondary Investments. Mr Sibilia has extensive experience of venture secondary deals, having acquired venture capital portfolios comprising over 30 companies. He will be responsible for all aspects of the secondary business, including strategy, investments, fundraising and portfolio construction. Draper Esprit Secondaries focuses on secondary opportunities in the European venture market. It provides liquidity to founders, angels, VCs and other shareholders in fast growing technology companies, as well as has the capacity to buy venture portfolios from other tech investors. Since 2006, it has concluded some of the largest venture secondary transactions in Europe. These include the £170m acquisition of 3i plc’s venture portfolio backed by Coller Capital and HarbourVest Partners; the £55m take-private of Prelude plc’s venture portfolio; and the acquisition of Cazenove’s £234m venture capital fund. Draper Esprit further announced last month they had acquired Elderstreet Investments to expand their VCT. Mr Sibilia is a Partner at Draper Esprit with extensive international experience in financial management, corporate finance and investment banking. Prior to joining the company in 2009, he worked in the technology group at Jefferies International advising on high-profile cross-border M&A, debt & equity offerings. Previously he also worked at Rothschild in Paris. He holds a MA in Management from EM-Lyon and a MA in Advanced Corporate Finance from the University of Paris IX Dauphine. Simon Cook, CEO, Draper Esprit commented, “Jonathan has been a critical part of our secondaries work so far and we are delighted that he will now lead this area in the business.”
DUBLIN, IRELAND- (November 8, 2016)- Draper Esprit (“the Company”), a leading venture capital firm involved in the creation, funding and development of high-growth digital technology businesses, announces that NASDAQ listed Callidus Software Inc. (NASDAQ: CALD), a global leader in cloud-based sales, marketing, learning and customer experience solutions, has acquired portfolio company, Datahug for a total consideration of $13 million cash. The deal values Draper Esprit’s total stake in Datahug at $6 million. The investment in Datahug was held across a number of vehicles managed by the Company. Datahug, headquartered in Dublin, Ireland is a SaaS predictive forecasting and sales analytics company. Brian Caulfield, Draper Esprit Managing Director said: “The use of predictive analytics to enhance sales efficiency and improve forecasting is expanding rapidly. Datahug has the leading product in that space. CallidusCloud has millions of sales people in their cloud that will be able to take advantage of the powerful analytics and insights Datahug has to offer. I would like to congratulate the CEO, Ray Smith, his co-founder Connor Murphy, and the Datahug team.” “There are more than 50 million companies in the world. They all want better sales forecasting. Datahug’s unique, patented, technology delivers rich, predictive analysis of sales pipelines in a visually stunning way. Being able to better predict the outcomes of sales cycles and identify the right sales opportunities means big value for our Lead to Money customers," said Leslie Stretch, president and CEO, CallidusCloud. "Their fast and easy to use solution leverages CRM, Commissions, CPQ, Service and Customer Feedback data sources to bring forecasting to life in a practical way that is easy to understand and visualise.” We first invested back in 2014 and have helped grow the business working closely with the management team and other investors. *-ends-* Enquiries Belvedere Communications (PR) John West Kim van Beeck +44 (0)20 3567 0510 Draper Esprit plc Isabella Cookson Head of Marketing +44 (0)20 7931 8800
Draper Esprit (AIM: GROW, ESM: GRW), one of the leading venture capital investors involved in the creation, funding and development of high-growth digital technology businesses in the UK, the Republic of Ireland and Europe, announces that it has accepted, along with other investors, a conditional offer for Dublin based portfolio company Movidius Ltd (“Movidius”) from Intel Corporation (“Intel”) for an undisclosed sum. Movidius is a leader in high performance, ultra-low power computer vision technology for connected devices. By combining sophisticated software algorithms with a powerful, purpose-built Vision Processing Unit (VPU), Movidius brings new levels of visual intelligence to smart devices. Applications of Movidius’ leading technology enable a new wave of intelligent and contextually aware devices such as drones and Augmented and Virtual Reality devices. Intel, a Santa Clara based global technology company (NASDAQ: INTC), has made a conditional offer for Movidius, which will result in an estimated total cash return of approximately £27 million for Draper Esprit before provision for accrued tax and carried interest payments. The Group had an unaudited pro-forma Net Asset Value (“NAV”) including goodwill at admission of £128.7 million with the disclosed audited NAV of the holding in Movidius of £7.5m as at 31 December 2015. The sale is expected to complete before the end of 2016 and is estimated to increase the Group’s total NAV by approximately 21%, when compared to the pro-forma NAV (excluding goodwill and cash) reported at the time of the Group’s admission to AIM / ESM in June 2016. The Group intends to invest the proceeds of the transaction in line with its existing investment policy. Further details will be presented in the Group’s trading statement to be made in early October. Simon Cook, CEO Draper Esprit commented: “We are proud to have once again helped an incredible management team with superior European technology to become a leading global platform. Movidius’ technology is enabling the next generation of computing devices with vision interfaces and the sale will allow the business to take full advantage of Intel’s global leadership and strong market position and the obvious market benefits this will bring.” Enquiries Draper Esprit plc Simon Cook (Chief Executive Officer) Brian Caulfield (Managing Partner) +44 (0)20 7931 8800 Numis Securities Nominated Adviser & Joint Broker Alex Ham Garri Jones Richard Thomas Paul Gillam +44 (0)20 7260 1000 Goodbody Stockbrokers ESM Adviser & Joint Broker Don Harrington Linda Hickey Dearbhla Gallagher +353 1 667 0420 Zeus Capital Benjamin Robertson Giles Balleny +44 (0)20 3829 5000 Belvedere Communications (PR) John West Kim van Beeck +44 (0)20 3567 0510
Article by Dan Primack, Fortune magazine Draper Esprit is now publicly traded in London. Draper Esprit, a London-based VC firm that has been backing European startups since 2006, is now publicly-traded on London’s AIM. The IPO raised £103 million, with proceeds being used to buy out limited partner positions in existing funds (it had last raised in 2010). Around £24 million of the IPO came via LPs rolling over their stakes, while the other £79 million was new capital. Simon Cook, Draper Esprit’s co-founder and CEO, says that he and his partners were planning to launch a new fundraise, but ultimately felt that a “patient capital” model would make more sense, given how few startups are mature enough for exit within the 10-year investment life of a traditional fund. “Look at how many U.S. funds are extended,” Cook says. “Or all of the other things that firms are adding, like opportunity funds. In Europe, venture capital is not as well understood by LPs, so adding lots of things can create confusion. Plus, there are a lot of investors that, for regulatory reasons, can’t invest in an illiquid fund structure.” To be sure, this isn’t novel. 3i Group ― where Cook once worked ― has been publicly traded for years. So is Imperial Innovations. Last year, Neil Woodford raised £800 million via an LSE float (Woodford also is a Draper Esprit backer). And then there is Boston-based Allied Minds, which also went public in London. Cook doesn’t believe the model would necessarily work in the U.S. although, to be honest, I’m not so sure. Private equity has been moving a bit in this direction, with balance sheets at firms like KKR actually supporting growth equity deals in tech startups, and there was talk before the financial crisis of Sequoia Capital trying to pull off an IPO. Remember, the UK had equity crowdfunding long before the U.S. got around to it….
Draper Esprit plc is pleased to announce that on Wednesday 15th June we will be admitted to the London and Dublin Stock Exchanges with the stock tickers GROW.L and GRW.I raising an initial £102m of permanent capital. That’s PERMANENT capital – i.e. money we can grow and invest over and over again in generations of startups, not a one-time fund. Why IPO a venture firm? Like the entrepreneurs we support, we have always seen the world a little differently and believe that, just because there’s a way it’s always been done, it doesn’t always have to be that way. The current popular VC structure, the Limited Partnership (LP) was first used nearly 60 years ago by our very own Tim Draper’s grandfather, General William Henry Draper, who moved to Palo Alto and started the first private VC limited partnership: Draper, Gaither and Andersen. Whilst the 5+5 year LP model has been largely unchanged since 1957, and it clearly works for many successful VC funds, there are some interesting new “patient capital” models emerging here in Europe. Europe and especially the UK lead the way globally in innovation in financial technology. From crowdfunding to currency exchange, the environment for innovation here sometimes challenges the USA and has driven the “Fintech” revolution to its recent highs. We are pleased to join a number of successful “patient capital”, non-LP VC firms already developing this new model in Europe, providing long term permanent capital to technology companies; firms such as as Imperial Innovations plc, IP Group plc, BGF Ventures, Eight Roads and Octopus Ventures. Having a different view is risky. As every entrepreneur who has had that “eureka!” moment appreciates, you learn that others often don’t see things the same way immediately; many will disagree, and the pull of the status quo is formidable. Like the visionary teams we back, we are doing what feels right to us, we believe in the model and we are 100% committed. Our motivations for evolving our VC business model were threefold and we want to share these with you. INVESTING FOR THE LONGER TERM First, we wanted to be able to invest for much longer in our winning companies than a typical 5+5 year LP fund allows, and to be able to build bigger stakes as companies remain private for longer periods. The pressure to show returns in Europe continues to force funds to sell out early after just a few years, and we believe the best global technology businesses take much longer to build to their maximum potential. We’ve gone public so our portfolio companies don’t have to until they are ready. Europe has different capital markets from the US, and we are fortunate to have supportive long term shareholders including Woodford Investment Management, the Irish Strategic Investment Fund, China Huarong Asset Management, Ballie Gifford and several other city institutions and successful entrepreneurs and family offices, many of whom have active later stage and IPO investment activities. This will allow us to complement our series A and B rounds with larger growth capital rounds later. As highlighted by many respected firms such as Atomico, growth capital remains the main funding gap in Europe for technology companies. We are pleased to be able to help address this gap by bringing major equity investors into the technology VC market, who don’t typically invest in Limited Partnerships. DEMOCRATISING VC ROUNDS The second motivation was to further democratise funding for entrepreneurs. Draper Esprit has joined the revolution for early stage investing with our EIS angel network and our investments in crowdfunding platforms: Crowdcube, Unbound, and Seedrs. We wanted to extend this openness to all investors through series A, B and later VC rounds. At present individual investors can access seed deals through crowd platforms, but after that traditionally the VC LP model has restricted who can invest in VC LP funds. So, rounds from series A onward are often unavailable to ordinary investors, restricted to large family offices and LP focused institutions. Many exciting technology companies are not accessible for investment by individuals until their IPO or even later. Now everyone can participate in the growth of VC--backed companies from their earliest stages through series A, B and beyond in the later stages up to and including their IPO. In some ways an IPO is just a very large crowdfund and we love being able to open up our investments to the wider community. LONG TERM CULTURE Our third motivation was to add depth to our culture – to help Draper Esprit become a more permanent business, moving away from the risks of only being as good as our last fund, creating a vision for a firm that will be here in 20 years’ time or longer. Like our best portfolio companies we can look beyond our next fund raise, and that will allow us to invest more in our business: we can invest for the long term in our people, in our services; we can build our brand alongside the ever inspiring Tim Draper; we can create a deeper training programme and career path for our staff (ps we are hiring associates, marketing and data scientists); and we can build upon the services provided to our portfolio via our membership in the global Draper Venture Network, particularly global expansion, recruitment and IPO/M&A/business development support. Culture is vitally important in any business and a long-term vision will strengthen our firm and make us a better partner. After all, what better way to understand how to help entrepreneurs to build and IPO great businesses than to do it ourselves? KICKSTARTING THE MODEL To get started, we have transferred our existing portfolio company investments on to our balance sheet and are very excited to have such an amazing portfolio for our shareholders to invest in today. Great companies such as Trustpilot, Graze, Movidius, Sportpursuit, Conversocial and Lyst, among many others, will underpin our portfolio growth from day one. We look forward to be able to continue to work with their management teams to build these exciting global leaders for many years to come, sharing that growth with our shareholders. We appreciate short-term share price movements will be impacted by daily sentiment on the health of the technology industry or global economy, and we are prepared for that; our broad, growing portfolio will help. As Mark Andresen and Ben Horowitz found with the IPO and growth of Opsware, value ultimately comes down to building a good company over the long term, and investors recognise that. We take inspiration from the $1 billion+ market cap listed UK university IP investment firms, such as Imperial Innovations plc and IP Group plc, who have operated in these conditions for many years, and who have been credited with transforming university technology commercialisation in the UK. We hope to do the same for digital entrepreneurs, wherever in Europe we find them. Of course, we will be actively looking to add many new entrepreneurial companies to our portfolio and we will continue to invest £500k to £30m+ in series A, B, C and beyond rounds across Europe. Our day job will remain as it has been for the last 10 years: helping to build global companies starting in Europe but with potential in the US, Asia and globally, with the aim to create global across consumer, enterprise, hardware and digital health. We welcome our new PLC board members; Karen Slatford, Richard Pelly and Grahame Cook, and thank our new capital markets advisors at Numis, Goodbody and Zeus, who will help us to grow further over the coming years. Thank you for your support and sharing our adventure over the last 10 years. We hope you will join us in our next evolution as we transform our VC model in Europe, and accompany us for many years to come as a publicly listed company. Our mission is simple: the right amount of capital as you need it, for as long as you need it, from whoever wants to invest in you at any stage. The founding team of Draper Esprit plc
April 30, 2015: Lyst, the fashion ecommerce platform, today announced it has raised $40 million in a Series C round of investment from LVMH’s controlling shareholder (Groupe Arnault), Accel Partners (investors in Facebook), Balderton Capital (YOOX Net-A-Porter Group), 14W (Everlane), DFJ Esprit and DFJ (Skype), and a New York based hedge fund. Launched in 2011 in London, Lyst connects millions of shoppers globally with over 11,000 designers and stores - including:
Today, RhodeCode, Inc. announced that DFJ Esprit and Earlybird led the company’s first investment round of $3.5M. Everyone at DFJ Esprit is absolutely delighted to be working with RhodeCode to build a world-leading enterprise software company right in the heart of Berlin. (more…)
DFJ, DFJ Esprit, and Prime Ventures back the market leading solution for managing server clusters within the data center SAN JOSE, CALIFORNIA — July 29, 2014 —Bright Computing, the leading provider of cluster management software, today announced a $14.5 million Series B financing co-led by DFJ and DFJ Esprit with participation from Prime Ventures and existing investor ING Corporate Investments. As part of the funding round, DFJ Partner Bill Bryant, Prime Ventures Partner Alexander Ribbink, DFJ Esprit Partner Richard Marsh, and ING CISO Rob Bening will be joining Bright’s board of directors. (more…)
Berlin-based Crate Data, an open source data store for developers, secures a $1.5m funding round London and Amsterdam, April 24, 2014 - Crate Data, an open source data store for developers, has raised $1.5 million from Sunstone and DFJ Esprit. Crate Data, which makes real time SQL queries on large data sets super simple, also announced its general availability. It is already in use by thousands of developers. Through its distributed real time SQL engine and a massively parallel shared nothing architecture, it enables tens of thousands of concurrent real time queries, even while dealing with a massive inflow of data, problems that today’s software only partially solves. (more…)
February 13, 2014 – Campanja, the fast growing platform which transforms the effectiveness of search engine marketing, has secured $5m (£3m) in Series A financing from Hoxton Ventures alongside DFJ Esprit. The new capital will be invested in platform development, key hiring in Palo Alto and Stockholm, and international expansion, including opening new offices in London and New York. (more…)
13 January, 2014 – New York – London – Copenhagen – Trustpilot, the leading review community for online shoppers, today announces it has raised $25m in Series C financing. This comes following 117 per cent growth in its consumer reviewer base with over five million online shoppers now posting reviews on Trustpilot. Global expansion also led to new offices in New York and London. (more…)