Draper Esprit acquires Seedcamp funds I and II for £17.9m

Draper Esprit

Public VC  Draper Esprit, which has invested in UK tech firms such as LoveFilm and Graphcore, has acquired Seedcamp Funds I and II for £17.9m.

As a result of the deal, Draper Esprit now owns Seedcamp’s stake in UK FinTech unicorn TransferWise.

It is believed the transaction will results in 4x returns to Seedcamp’s investors.

Seedcamp’s co-founder and managing partner, Reshma Sohoni, said:“We are thrilled to help our Seedcamp companies scale to the next level with the support and firepower of Draper Esprit. As the Seedcamp team continue to manage Funds I and II, Draper is the perfect partner to help us manage these businesses.”

Seedcamp’s other managing partner, Carlos Eduardo Espinal, went on to say: “We see this as a great outcome working alongside experienced and knowledgeable investors who’ve supported us for many years. We are always looking at innovative ways to deliver exceptional returns to our LPs and believe this transaction is a win-win for everyone involved. We look forward to continuing to work with the growing companies and founders from our first and second funds with Draper’s added horsepower.”

Today’s news comes after Draper Esprit said it would be backing Seedcamp and Episode 1 Ventures earlier this month.

Simon Cook, the CEO of Draper Esprit, commented:  “Although principally a primary Series A, B and C VC Growth investor, we have also been very active over the years as a secondary tech investor in Europe having acquired a number of well-known VC portfolios and increasingly taking large direct stakes in later stage companies. Together with our recently announced seed fund of funds strategy we can offer long term patient capital solutions for all European tech companies and their investors outside of the constraints of a typical 5+5 year fund.

“We have a great relationship with Seedcamp and recently invested directly in their Seedcamp IV fund to give our investors access to seed stage opportunities.  This acquisition further bolsters our growing secondary business; increases our exposure to a really good portfolio of European technology companies including TransferWise, one of Europe’s most successful startups,” he concluded.