Draper Esprit (LSE:GROW), a publicly-traded venture capital firm, has distributed an update on investment activity. Key to its results is the exit opportunity from Cazoo, a firm that was recently listed on the NYSE generating $1 billion in proceeds. Cazoo’s current market cap is around $7 billion.
Draper Esprit said that it committed a further £25 million in a $160 million Series C round in payment technology provider Form3. The round was led by Goldman Sachs.
Founded In 2016, Form3 is a payment technology provider and offers an alternative to the traditional payment infrastructure model. Form3 is currently utilized by some of the UK and Europe’s biggest Tier 1 banks as well as Fintechs.
Draper Esprit said that based on the valuation implied by the fundraising, Form3’s gross fair value holding (before carry deductions) is approximately £58 million. Excluding the £25 million of newly invested capital, this is an uplift of approximately £23 million to the March 2021 gross fair value of £10 million.
In September, Draper Esprit participated with another £15 million investment in an $80 million Series B extension round in CoachHub.
CoachHub is a global talent development platform that leverages AI to match individuals with businesses.
Regarding Cazoo, the company announced its business combination with AJAX I and its listing on the NYSE. Cazoo (NYSE: CZOO) received $1 billion in proceeds before expenses from the transaction. Cazoo is an online car retailer which has delivered over 35,000 cars to customers across the UK and mainland Europe.
Based on the share price of $9/share the Cazoo’s gross fair value holding (before carry deductions) is approximately £37 million, which is an increase of approximately £11 million to the March 2021 gross fair value of £26 million.
Martin Davis, CEO of Draper Esprit, said their recent activity has demonstrated the strength of their portfolio:
“Cazoo’s IPO is further evidence of this, as in only three years, it has established itself as one of the most significant players in the European used car market. As we recover from the pandemic, the technology sector continues to go from strength to strength and we are well positioned to continue to support the most promising companies.”