Publicly-listed UK VC Draper Esprit acquires Seedcamp’s Fund I & II for $23.6M
The unique Fund 1 measurement was €2.5m and was raised in 2007, whereas the Fund II measurement €5.2m and was raised in 2010. The transfer delivers a 4x return to to the LPs that invested in these two funds, and in addition means Draper Esprit will decide up a minority (however a big minority) stake in fintech unicorn TransferWise.
Seedcamp’s Fund I, launched in 2007 and Fund II, raised in 2010, contains some excessive profile corporations together with Codacy, Edited, Erply, Fishbrain, Codility, Winnow, Codeship, and Attempt.com amongst others.
Nevertheless, Seedcamp stated it could proceed to function “as is” and its third fund “is unaffected as a part of this.” In different phrases, Seedcamp continues to have wiggle room with its third fund.
As a part of the deal, Seedcamp will proceed to handle the businesses as a part of the sale. It additionally simplifies Seedcamp’s LP construction, shifting it from having a number of LPs to only one. It additionally means Seedcamp can have entry to follow-on funding from Draper permitting it to take a position all the best way from Seed as much as a B-round.
In the meantime Draper Esprit, a publicly floated VC, yesterday reported 44% annualised development throughout their portfolio over the previous 6 months. Draper Esprit portfolio’s final reported NAV was £23.5 million (€26.three million), leading to a rise of £5.6 million (€6.three million) (~7p per share).
Seedcamp Co-founder and Managing Associate, Reshma Sohoni, commented: “We’re thrilled to assist our Seedcamp corporations scale to the following stage with the assist and firepower of Draper Esprit. Because the Seedcamp staff proceed to handle Funds I and II, Draper is the right companion to assist us handle these companies.”
Seedcamp Managing Associate, Carlos Eduardo Espinal, added:
“We see this as an excellent end result working alongside skilled and educated buyers who’ve supported us for a few years. We’re at all times taking a look at progressive methods to ship distinctive returns to our LPs and imagine this transaction is a win-win for everybody concerned.
Simon Prepare dinner, CEO Draper Esprit plc commented: “Though principally a main sequence A, B and C VC Progress investor, we’ve additionally been very lively through the years as a secondary tech investor in Europe having acquired a lot of well-known VC portfolios and more and more taking massive direct stakes in later stage corporations. Along with our just lately introduced seed fund of funds technique we will supply long run affected person capital options for all European tech corporations and their buyers exterior of the constraints of a typical 5+5 yr fund. This acquisition additional bolsters our rising secondary enterprise; will increase our publicity to a extremely good portfolio of European know-how corporations together with Transferwise, one in every of Europe’s most profitable startups.”
A Seedcamp spokesperson added that its funding and ops staff wouldn’t be affected by this deal and received’t be working for Draper in some other manner than they’d be accountable to different LPs.
Total this appears like an excellent deal for all events. Draper Esprit acquires an honest portfolio at a stroke and Seedcamp now will get entry to later stage funds.
Seedcamp was constrained by the 5+5 years funding mannequin that meant it needed to dump their corporations. Now they don’t, as a result of they’re funded by a publicly floated single investor that doesn’t have a 5+5 yr timeframe, and may make investments from Seed to Sequence B.
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