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XMOS powers growth in voice with $15m funding round

Posted by Paula Darlison, 07 Sep 2017
 

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 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: 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 mpandolfi@ravenpack.com   Draper Esprit PLC Contacts: Isabella Cookson Head of Marketing +44 (0)20 7931 8800



 

British tech company POD Point secures investment to power surge in electric vehicle ownership

Posted by Isabella Cookson, 20 Feb 2017
 

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%



 

Promotion of Jonathan Sibilia to Head of Secondary Investments

Posted by Isabella Cookson, 07 Dec 2016
 

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.”



 

Draper Esprit Portfolio Company Datahug to be Acquired for $13m by Callidus Software Inc.

Posted by Isabella Cookson, 08 Nov 2016
 

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



 

Graphcore secures $30m to accelerate artificial intelligence

Posted by Isabella Cookson, 31 Oct 2016
 

31 Oct 2016, Bristol, UK: Graphcore Ltd, a startup developing new technology to deliver massive acceleration for machine learning and AI applications, has completed a $30m Series-A funding round from a world-class line up of venture capital and strategic investors. The funding was led by Robert Bosch Venture Capital GmbH with Samsung Catalyst Fund and other major technology firms, alongside leading venture capital funds from London, Silicon Valley and Israel: Amadeus Capital Partners, C4 Ventures, Draper Esprit plc, Foundation Capital and Pitango Venture Capital. Graphcore has spent the last two years building an experienced hardware and software team to develop a system designed from the ground up to accelerate both current and next generation machine intelligence applications such as natural language dialogue, autonomous vehicles and personalized medicines. The company will bring its IPU (Intelligent Processing Unit) system to market in 2017 with the IPU-Appliance™ designed to lower the cost of accelerating AI applications in cloud and enterprise datacenters. The IPU-Appliance aims to increase the performance of both training and inference by between 10x and 100x compared to the fastest systems in use today. The company also plans to make its low power IPU technology available for embedded consumer applications including autonomous cars, collaborative robots and intelligent mobile devices. IPU systems will accelerate the full range of training, inference, and prediction approaches. Its huge computational resources and software tools and libraries are flexible and easy to use, allowing researchers to explore machine intelligence across a much broader front than the current focus on feed-forward neural networks. This technology will enable recent success in deep learning to evolve rapidly towards useful, general artificial intelligence. A Bank of America Merrill Lynch report citing IDC research recently predicted that the AI industry will exceed $70 billion by 2020 and Tractica predicts that spending on hardware for deep learning projects will grow from $436 million in 2015 to $41.5 billion by 2024. Graphcore CEO and co-founder, Nigel Toon, said, “Machine intelligence will have a bigger impact on our lives over the next 10 years than mobile technology has had in the last two decades. Next generation machine intelligence will allow us to translate foreign languages in real-time, help diagnose illnesses and develop personalized treatments, control robots that clean our houses and offices, drive cars autonomously and provide us with intelligent digital assistants that can help us organize our busy lives. The IPU is the first system specifically designed for machine intelligence.” Graphcore CTO and co-founder, Simon Knowles, said, “For 70 years we have built computers to do exactly what a software program says, step by step. The program is an algorithm for solving a problem, and that algorithm must come from a human. Today’s computers do not actually help the human to solve the problem. Machine intelligence is turning that on its head.  Intelligent machines can analyse data like humans, discover underlying patterns, and effectively write their own programs. They can then adapt their behaviour through trial and error, like humans. They can deal with probabilities and exercise judgement in the presence of uncertainty, like humans. We are at the dawn of this second age of computing, in which machines are given the capacity for intelligence. The value to society of intelligent computing will be far greater than that of all computing so far. Silicon is still our best technology for building such machines, but the design details will be quite different from today’s microprocessors. Graphcore is at the vanguard of this revolution in computer design and has assembled a peerless engineering team to deliver the first processors designed from scratch for general intelligence.” Linley Gwennap principal analyst of The Linley Group commented, “Machine intelligence and deep learning applications are now popular enough to justify new silicon approaches. The team at Graphcore has a strong track record of creating successful new processors for emerging markets.” Dr Hongquan Jiang, Partner at Robert Bosch Venture Capital GmbH added, “Graphcore has a unique technology that has massive potential in the fast emerging market for deep learning. A new processor technology is needed for intelligent systems and Graphcore has the first technology that we have seen which really delivers the performance and efficiency needed for this style of compute. We are excited to have led this very significant investment round.” “Graphcore’s approach is unique in its capability to enable advanced intelligent systems,” said Ekaterina Almasque, Managing Director, Samsung Catalyst Fund, Europe. “It closes the gap between the level of intelligence we want to see on edge devices and compute limitations of existing hardware architectures. At Samsung Catalyst Fund, we invest in disruptive companies in this space, and believe tremendous value will be created in the next 10 years  by artificial intelligence applications. Graphcore will play an important role as a key enabling technology.” Hermann Hauser, co-founder at Amadeus Capital Partners and a renowned technology entrepreneur, said, “I have worked with Nigel and Simon before in their previous companies where they achieved over $1bn in successful exits for their investors. The team they have assembled is second to none. Machine learning is becoming a major market and Graphcore has the technology to lead this next wave of computing.” Bill Elmore, General Partner and co-founder at Foundation Capital, one of Silicon-Valley’s top venture capital firms behind a large number of highly successful companies including Netflix, said, “Graphcore will lower the cost of accelerating AI applications in the cloud. This is exactly the type of world-class systems company, with breakthrough technology, and a great team, that Foundation Capital supports.” Simon Cook, CEO Draper Esprit Plc, stated, “Graphcore is one of the first investments made since we publicly listed in London and Dublin. This is a sector we know well and a founding team that we have successfully backed before. Nigel and Simon have created an exciting company developing next generation processor technology and we are pleased to be investing at this key stage in its development.” Pascal Cagni, Founding Partner of C4 Ventures, Apple GM and VP EMEA (2000-2012), said: “Since its foundation C4 Ventures has been backing hardware companies revolutionising their sector and we believe Graphcore’s disruptive technology is a game changer in the computing field. Graphcore’s solution pushes further the boundaries of Machine Intelligence, which will unlock value across every industry.” Eyal Niv, Managing General Partner at Pitango Venture Capital, said: “We are very excited to become part of Graphcore and to be backing great entrepreneur like Nigel and Simon. I believe we are on the verge of a new and smarter era, in which computer intelligence, machine learning and deep learning, will transform every aspect of our lives. Smart personalized medicine, autonomous transportation and robotics, smart infrastructure and accurate business prediction are just some of the areas which will be transformed and immensely improved by machine learning technologies. I really believe machine learning will bring about the biggest transformation ever, bigger than the internet, mobile and social put together.” Graphcore was advised by Orrick, Herrington & Sutcliffe in the financing. About Graphcore Graphcore is a systems and silicon company that has created the Intelligent Processing Unit (IPU) to accelerate machine intelligence, making it faster and easier to deliver AI applications. Graphcore is backed by leading venture capital and strategic investors including Amadeus Capital Partners, C4 Ventures, Draper Esprit, Foundation Capital, Pitango Venture Capital, Robert Bosch Venture Capital and Samsung SSIC, and is headquartered in Bristol UK. More information can be found at http://www.graphcore.ai Press Contact: Sally Doherty sally.doherty@graphcore.ai +44 7815 873601



 

Sale of Movidius Ltd Increases Draper Esprit Net Asset Value

Posted by Paula Darlison, 06 Sep 2016
 

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



 

A VC Firm IPOs… Itself

Posted by Paula Darlison, 16 Jun 2016
 

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….



 

So We Just IPO’d Our Venture Capital Firm (Draper Esprit plc)

Posted by Paula Darlison, 15 Jun 2016
 

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



 

Lyst announces $40m investment round

Posted by Paula Darlison, 30 Apr 2015
 

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:

  • Acne
  • Alexander McQueen
  • Alexander Wang
  • Barney’s
  • Burberry
  • Harrods
  • J.Crew
  • Lane Crawford
  • Neiman Marcus
  • Saks Fifth Avenue
  • Topshop
  • Valentino
1 checkout :  $400 Average Order Value Significantly, Lyst was the first to launch a  universal cart in the fashion space, enabling  shoppers to check out from multiple retailers in  a single, unified checkout. Lyst now generates hundreds of millions in sales for the fashion industry and has grown  over 300% year on year for the past three years. 154 countries have shopped on Lyst in the last 3 months This investment will support Lyst’s continued internationalisation as the universal cart technology is rolled out globally. It will also fuel the company’s growth across its teams in London and New York. Growth in sales (run-rate) $40M(12 months ago) $150M(today). “This is an exciting time in our space and we are very proud to be at the centre of it. Our model has grown exponentially in the USA and UK, and this round of funding allows us to take Lyst to fashion consumers around the world. We are already seeing a higher conversion by as much as five times through our universal cart - its widespread adoption by the industry’s leading brands and stores is a testament to the unique platform we have built and the volumes of sales it is generating.”  Chris Morton - Co-Founder & CEO. How Lyst is an innovative way to shop for fashion online that’s used by millions every month. Lyst partners with the world’s greatest fashion designers and stores to provide people with a personalised way to discover the fashion they love. The level of service, intelligence and insight that Lyst provides to its users and partners comes from analysing over 4.5 million points of fashion data every hour - from product changes and user behaviour to sales and active browsing. Lyst has raised $60 million to date, and is backed by range of all-star  investors including 14W (Moda Operandi, Reformation), Accel Partners (Facebook, Spotify), Balderton (Yoox Net-A-Porter Group), DFJ Esprit and DFJ (Skype), and the teams behind  LVMH, Michael Kors, Oscar de la Renta, and Tory Burch. Contact Joanna Christie Head of Brand & Communications +44 (0) 7887 527 52




 

Horizon secures £69m in London flotation

Posted by DFJ Esprit, 21 Aug 2014
 

  • Horizon Discovery, which has been backed by leading European investor DFJ Esprit, secures £68.6m to fuel global growth through oversubscribed IPO
  • Cambridge-based biotech company is only healthcare business in UK Government’s Future Fifty list of most promising tech companies, and only second to float
Embargoed, 00.01, 27 March, 2014: Horizon Discovery Group has become the second of the government’s ‘Future Fifty’ to float on the London Stock Exchange. (more…)



 

DFJ Esprit marks ‘most active’ year with pledge to take more start-ups global

Posted by DFJ Esprit, 21 Aug 2014
 

  • DFJ Esprit's 2013 deal-flow marked it out as one of Europe’s most active venture capital investors, as it completed one deal every two weeks across the continent
  • Pace continues in 2014 with Kana exit to Verint in a $514m deal and $110m (£69m) IPO of Horizon Discovery
April 2014: Venture capital firm DFJ Esprit continues to be one of the leaders in backing European tech start-ups and growth companies, and its recent deal flow has never been stronger. (more…)



 

Bright Computing Raises $14.5M Series B to Accelerate its HPC, Hadoop and OpenStack Business

Posted by DFJ Esprit, 29 Jul 2014
 

DFJ, DFJ Esprit, and Prime Ventures back the market leading solution for managing server clusters within the data center SAN JOSE, CALIFORNIA —  July 29, 2014Bright 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…)



 

Crate Data, an easy to scale, real time SQL data store, secures funding from Sunstone and DFJ Esprit

Posted by DFJ Esprit, 24 Apr 2014
 

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…)



 

Campanja raises $5 million to drive global expansion

Posted by DFJ Esprit, 13 Feb 2014
 

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…)



 

Trustpilot Secures $25 Million Funding to Accelerate Growth

Posted by DFJ Esprit, 13 Jan 2014
 

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…)