Exit opportunities are vital for the private securities ecosystem to function effectively. Obviously, investors back early-stage firms to generate capital gains, and this typically happens via an acquisition, merger, or public offering. Seedrs is unique in that it offers a relatively robust secondary marketplace to provide an opportunity for an exit outside an M&A or IPO event. Seedrs, part of the largest securities crowdfunding group in the world, is reporting another exit today as Zypho has been acquired by Aliaxis.
Zypho raised €750,043, backed by 429 investors on Seedrs in a securities offering taking place in July of 2018. At that time, Zypho offered about a quarter of equity in the firm at a pre-money valuation of €2,204,060.
According to an email from Seedrs, Portugal-based Zypho has been purchased by Aliaxis, which is said to be the global leader in fluid management solutions.
Zypho offers a drain water recovery solution that aims to reduce energy bills while lowering emissions and wastewater.
Seedrs states that the acquisition will enable Aliaxis to use its global presence and experience in fluid management solutions to expand the reach of Zypho’s products and Aliaxis will benefit from Zypho’s expertise in their recovery solutions.
Seedrs shares that investors will receive up to a 3.8X return on their investment. Zypho’s most recent indicative value was pegged over almost €11 million.
Most successful exits in a private firm take some time – typically years. At some point, CI would like to see all securities crowdfunding platforms to share returns annually based on vintage. While investors understand that most startups will go bust, on a portfolio basis, returns should be index-topping for investors.
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