Draper Esprit, a venture capitalist firm based in Ireland, has announced the acquisition of two funds from Seedcamp for £17.9 million ($23.6 million), adding instantly to its portfolio startups like Transferwise, a UK-based Fintech, as well as Codacy, Edited, Erply and Fishbrain.
“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,” said Simon Cook, Draper Esprit’s CEO, in a press release.
Although Draper Esprit has maintained a good relationship with Seedcamp and recently has invested in its Seedcamp Fund IV, the company wish to seize control of a portfolio to offer its investors opportunities in startups in A, B and C rounds.
“We set out to demonstrate our model in a public-market setting of investing in high-growth, private technology startups,” said Cook. “Through our fast-growing portfolio and a series of successful exits and further investments, we have demonstrated that the public venture-capital model is working.”
Transferwise, launched in 2011, has raised $117 million from top investors such as Sir Richard Branson and Max Levchin of PayPal. At least one million people use Transferwise to move more than $1.2 billion every month.
Other startups involved in the acquisition are Codacy, an automated code review platform; Editd, which creates real-time data analytics software for apparel retailers; Erply, an enterprise software company focusing on point-of-sale and inventory management tech; Fishbrain, a social network and app for fishing; Codility, a global leader in tech recruiting assessments; Winnow, a UK startup that has developed smart kitchen technology; Codeship, which offers continuous integration products in the cloud; and Try.com, an e-commerce platform that allows users to try clothes before buying from any online store.
Just hour before the acquisition announcement Draper Esprit revealed that its portfolio value increased 44 percent, up to £162.8 million ($192.104 million), in the first six months of 2017. Also its net grew to £266.8 million ($314.824 million), up from £150.7 million ($177.826 million) in March this year.
Draper Esprit highlighted the returns that companies in Seedcamp I & II had rendered in the recent past to assert its expectations to continue that trend with a more “long-term” accompaniment to the startups.
“As the Seedcamp team continue to manage Funds I and II, 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,” said Reshma Sohoni, Seedcamp’s co-founder and managing partner.