Draper Esprit plc
Investor Presentation
Interim Results 2020
2
Disclaimer
This document has been prepared by Draper Esprit plc ("Draper Esprit" or the "Company") and is for general
information purposes only. The information provided in this document pertaining to Draper Esprit, its broader
group ("Group"), its portfolio companies, and the business assets, strategy and operations related thereto, does
not, and is not intended to, constitute or form part of any offer for sale or subscription or any solicitation for any
offer to purchase or subscribe for any securities, options, futures, or other derivatives related to securities. Nor
shall it, or any part of it, form the basis of, or be relied upon in connection with, any contract or commitment
whatsoever relating to the Company or any part of, or affiliate to, the Company or the broader Group.
The contents of this document are not prescribed by securities laws and are only intended to be communicated or
distributed within the UK and Ireland to persons to whom they may lawfully be communicated. In particular, note
that this document has not been approved for the purposes of section 21 of the UK Financial Services and Markets
Act 2000. This document is for distribution to persons that qualify as professional clients or eligible counterparties
in the UK under the rules of the UK’s Financial Conduct Authority, and in Ireland to qualified investors (as defined
in regulation 2(1) of the Prospectus (Directive 2003/71/EC) Regulations 2005 of Ireland (as amended)), or as such
terms or equivalent terms are understood in the jurisdiction in which this document is received.
Information contained in this document should not be relied upon as advice to buy or sell or hold such securities or
as an offer to sell such securities, and is in any event not intended for the use of, nor should be relied upon by, any
person who would qualify as a retail client. This document does not take into account nor does it provide any tax,
legal or investment advice or opinion regarding the specific investment objectives or financial situation of any
person. This document and the information contained in this document is confidential and must not be copied,
reproduced or published in whole or in part for any purpose to any other person without the prior written consent
of Draper Esprit. This document should not be distributed to or otherwise made available to persons whose
address is in Canada, Australia, Japan, the Republic of South Africa or the United States, its territories or
possessions, or in any other jurisdiction outside of the United Kingdom and Ireland. The distribution of this
document in any other jurisdictions may be restricted by law, and persons into whose possession this document
come should inform themselves about, and observe, any such restrictions. If any part of this document has been
received by any person in error, it should be returned to the Company immediately Any failure to comply with
these restrictions may constitute a violation of the laws of the relevant jurisdiction, and Draper Esprit accepts no
liability whatsoever for any such violations.
The information contained in this document is given at the date of its publication and is subject to updating,
revision and amendment. Whilst the Company reasonably believes that the facts stated in this document are
accurate and that any forecasts, opinions and expectations contained herein are fair and reasonable, no
redocument or warranty, express or implied, is made to the fairness, accuracy, completeness or correctness of
these materials or opinions contained therein and each recipient of this document must make their own
investigation and assessment of the matters contained therein. In particular, but without prejudice to the
generality of the foregoing, no redocument or warranty is given, and no responsibility or liability is accepted by
the Company or its representatives to any person, as to the accuracy of the information set out in this document;
the achievement or reasonableness of any future projections or the assumptions underlying them; any forecasts,
estimates, or statements as to prospects contained or referred to; or for any errors or omissions in the information
contained in this document.
This document may contain forward-looking statements that reflect Draper Esprit's current expectations
regarding future events, its liquidity and its subsidiary undertakings and the results of its operations, as well as its
working capital requirements and future capital raising activities. By their nature, forward-looking statements
and financial projections involve numerous assumptions, known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the predictions, forecasts, projections and other
forward-looking information will not occur, which may cause the Company's actual performance and financial
results in future periods to differ materially from any estimates or projections of future performance or results
expressed or implied by such forward-looking statements and financial projections. Important factors that could
cause actual results to differ materially from expectations include, but are not limited to: business, economic,
global health and capital market conditions; the heavily regulated industry in which the Company carries on
business; current or future laws or regulations and new interpretations of existing laws or regulations; legal and
regulatory requirements; market conditions and the demand and pricing for the Company’s securities or services;
the Company’s relationship with its customers, developers and business partners; the Company’s ability to
attract, retain and motivate qualified personnel; the nature of competition in Draper Esprit’s industry; failure of
counterparties to perform their contractual obligations; failure of systems, networks, telecommunications or
other technology; service disruptions or cyber-attack; macro-economic factors associated with trends in global or
local economies; pandemic or other widespread disease or crisis event; ability to obtain additional financing on
reasonable terms or at all; litigation costs and outcomes; the Company’s ability to successfully maintain and
enforce intellectual property rights and defend third party claims of infringement of their intellectual property
rights; the Company’s ability to manage foreign exchange risk and working capital; and the Company’s ability to
manage its growth. This list of factors should not be construed as exhaustive.
Any forward-looking statements or financial projections contained herein as to future results; level of activity;
performance; achievements or otherwise, are based on the opinions and estimates of management at the date
the statements are made. Whilst considered reasonable, the Company cannot and does not represent or
guarantee that actual results achieved will be the same, in whole or in part, as those set out in any forward-
looking statements and financial projections. The forward-looking statements and financial projections
contained in this document are expressly qualified by this notice and the Company strongly advises against undue
reliance on forward-looking statements or financial projections.
Information regarding several companies in which Draper Esprit (or funds controlled by Draper Esprit) hold shares
("Investee Companies") is included in this document and has not been independently verified. Draper Esprit is a
minority investor in these Investee Companies and cannot access all the information necessary to verify such
information. Draper Esprit does not have any liability whatsoever in relation to such information. No responsibility
or liability whatsoever is accepted by any person for any loss howsoever arising from any use of, or in connection
with, this document or its contents or otherwise arising in connection therewith.
In publishing this document, except as required by law, Draper Esprit undertakes no obligation to update or to
correct any inaccuracies which may become apparent, whether as a result of new information, future events or
otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Draper Esprit reserves the right to amend, replace or update the information contained herein in future versions of
this document, in part or entirely, at any time, and undertakes no obligation to provide recipients with access to
the amended information or to notify the recipient thereof.
By receiving this document (whether in hard copy form or electronically) or any presentation delivered in
connection thereto, you irrevocably represent, warrant and undertake to Draper Esprit that: (i) you are a
professional client; an eligible counterparty and/or a qualified investor, and (ii) you have read and agree to
comply with, and be bound by, the contents of this notice.
3
Contents
01.
Summary & highlights
02.
Market ecosystem
03.
Portfolio update
04.
Results for the period ended 30 Sept 2020
05.
Outlook
06.
Appendix
01. Summary & highlights for the
period ended 30 Sept 2020
4
Summary & highlights
A long-term investment strategy delivering consistent returns in the private technology VC and Growth market
• We have used the period to:
• support our portfolio companies & further strengthen our high-quality portfolio
• develop the model to support us to scale further
• maintain strong discipline over valuations process and methodology
• Despite the challenges of the pandemic, our investment machine continues to deliver, with a gross fair value movement in the
period of £72.7 million
• We achieved gross fair value growth of 10% in the period, we feel well placed to continue momentum throughout the rest of
the year
• We have set out a clear set of priorities for deploying further capital
• We have a strong portfolio from which we will back the emerging winners, as well as invest in new deal flow, and continue to
support our seed funds strategy and Earlybird partnership, via a planned investment in Earlybird Fund VII
• With a stronger balance sheet after realisations and our fundraising, we can lead more deals and increase our average equity
holdings over time
5
6
A differentiated model that can scale
Investment Process• Deal origination
• Deal execution
• Marketing
• Seasoned team
of deal makers
• Entrepreneurs,
founders, operators,
investors
Platform Team
Partnership Team
Seed
Series A
Series B
Series C
Pre-IPO & on
Fund of
Funds
PLC
Our Shareholders –
acting
independently
PLC
Capital• Additional commitment to
Fund of funds
• Acquisition of EIS and VCT
• Established Responsible
Investment Policy (ESG)
Scaling the model
UK
EU
Exit (IPO,
trade
sale)
Thousands
+ Cos raising
in Europe
Seed Fund
of Funds
Secondary
Market Access
We meet and closely track
thousands of companies per year
We invest in up to
15-30 new + follow on p.a
Build stakes and
facilitate growth
7
Interim results highlights for the period ended 30 Sept 2020
Financial Highlights
Net Assets
£715m
Robust performance drives growth in net asset value
600p NAV per share - 8% increase (H1)
Available cash
£62m as well as £39m from the EIS/VCT funds
Gross Portfolio Value
£702m post significant realisations
Gross Portfolio return of 10% in the period
£73m
Significant realisations
£106m Peak and TransferWise, escrows & partial disposals
Scaling the business
•
Invested £32m in the period into 2 new companies, Cazoo and Ravelin (& additional
2 via Earlybird) & 7 follow-ons (a further 2 via Earlybird)
• Committed to 2 new seed funds bringing total commitments of ~£41m
•
Increased and extended our revolving credit facility with SVB and Investec by 1 year
to £60m
Post period end activity
• ~£110m capital raise
• Strengthened partnership group & dealflow team
• Over £18m deployed including our investment in PrimaryBid
Operational Highlights
02. Market ecosystem
8
9
Ecosystem activity
• Value of deals has continued to increase, even as the number of
deals has reduced, indicative of the importance of later stage
investment
• 2020 on track to a strong year, despite Covid-19
• Follow-on dealflow continues its historic increases, indicating that:
• VCs are continuing to follow their own investments
•
Later round investments are getting larger
EU VC Deal Activity
EU Primary and Follow-on VC Deals
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
€0.0B
€5.0B
€10.0B
€15.0B
€20.0B
€25.0B
€30.0B
€35.0B
€40.0B
€45.0B
2014
2015
2016
2017
2018
2019
2020 YTD
0-€1m
€1m-€4m
€4m-€15m
€15m-€40m
€40m-€100m
€100m-€250m
€250m+
No of Rounds
€0.0B
€5.0B
€10.0B
€15.0B
€20.0B
€25.0B
€30.0B
€35.0B
€40.0B
€45.0B
2014
2015
2016
2017
2018
2019
2020
Primary VC
Follow -on VC
YTD
Source: Dealroom. YTD as of 18/11/20.
10
Deal share by series in Europe*
EU VC deal activity with US investor participation
Ecosystem activity
0
500
1000
1500
2000
2500
3000
3500
2014
2015
2016
2017
2018
2019
2020 YTD
€1m-€4m
€4m-€15m
€15m-€40m
€40m-€100m
€100m-€250m
€250m+
-
100
200
300
400
500
600
700
800
900
1,000
€0.0B
€2.0B
€4.0B
€6.0B
€8.0B
€10.0B
€12.0B
€14.0B
€16.0B
€18.0B
2014
2015
2016
2017
2018
2019
2020 YTD
0-€1m
€1m-€4m
€4m-€15m
€15m-€40m
€40m-€100m
€100m-€250m
€250m+
No of Rounds
-
• Later stage deals continue to grow, a demonstration of the
importance of Draper Esprit's focus in this space
• 2020 has seen a continuation and escalation of the trend for US
VCs to invest in European tech. Both a sign of the continued
maturation of European technology and an increase in
competition within VC
Source: Dealroom. YTD as of 18/11/20.
*Deals from 0-€1m value excluded.
11
03. Portfolio update
12
Gross portfolio value progression to September 2020
Remaining
Gross Portfolio
Value
£267m
£702m
£13m
£14m
£14m
£17m
£18m
£18m
£19m
£23m
£27m
£32m
£37m
£81m
£81m
£22m
£19m
31st March 2020
Invested
Fair Value Movement
*
*
* New additions to the core
13
Plc invested £32m in the period
Further £18m from EIS/ VCT funds
All companies listed represent investments of over £1.0 million.
April
May
June
July
August
September
Deal Sourcing Strategy
Initial investments
Follow-on investments
Exits
Via Earlybird
October
Post period end
Agreed EarlyBird
Fund VII
14
Valuation key
LR: Valuation based
on last round price
C: Valuation based
on a set of comparable
listed peers
• The online global review site, has tracked over 100m reviews, of over 400,000
companies since it launched in 2007. With offices in Copenhagen, London,
New York, Denver, Berlin, Melbourne and Vilnius, Trustpilot's 750 employees
represent more than 40 different nationalities
•
In July, announced new initiatives to 'fight for trust online’. The initiatives, set
to be implemented by the end of 2020, demonstrate Trustpilot’s ongoing
commitment to leading the reviews industry which remains useful for, and
trusted by, both consumers and businesses
• Announced new global R&D and Innovation Hub in Edinburgh, Scotland, to
develop new, world-leading technology that proactively tackles the behaviour
that threatens trust online
• The Hub is supported through a £1.8 million R&D grant from Scottish
Enterprise, bringing new investment into Scotland with the aim to create 30
new advanced data science jobs and a number of new local partnerships
C
£29.7m
£80.9m
2.7x
Cash / NAV
Invested
Investment Valuation
• Uipath, the robotic process automation (RPA) software company raised a
US$225.0m Series E Round led by Alkeon Capital Management. At over
US$400.0m in ARR, UiPath is one of the fastest growing enterprise software
companies worldwide
• Created a Legal Automation Task Force and launched a virtual streaming
solution that allows customers, prospects, and partners to explore
enterprise automation solution showcases, attend demos and participate in
workshops as part of a fully remote UiPath Immersion Lab experience
• Enhanced its Business Partner Program to enable organizations to leverage
the power of hyper automation, offering training, certification, and
marketing programs for business partners through the launch of its UiPath
Services Network (USN)
• Renzo Taal has joined the Company as Senior Vice President and Managing
Director of EMEA
LR
£10.3m
£36.7m
3.5x
Cash / NAV
Invested
Investment Valuation
31st March 2020
Invested
Fair Value Movement
£81m
£702m
Gross
Portfolio
Value
£37m
£702m
Gross
Portfolio
Value
Significant fair value movements
Movement
of £15.6m in
the period
Movement
of £11.2m in
the period
15
Significant fair value movements
Valuation key
LR: Valuation based
on last round price
C: Valuation based
on a set of comparable
listed peers
•
Intelligent information management platform, M-Files, organises customers’
content with the ability to connect to existing network folders and systems
to enhance them with the help of AI to categorise and protect information
• Named 2020 Top Rated Enterprise Content Management (“ECM”) Software
by End-Users on TrustRadius - receiving one of the highest overall rankings,
including top scores for product scalability, and likelihood to renew
• Named a "Leader" in the 2020 Nucleus Research Content Manager Value
Matrix Report (7th year)
• Expanded its strategic international partnerships with Iron Mountain, Fulton
Hogan, Devoteam Management Consulting Denmark, and Fuji Xerox Asia
Pacific Pte LTD
• Received SOC 3 accreditation, certifying it is in compliance with the Trust
Services Criteria of security, availability and confidentiality developed by the
American Institute of CPAs (AICPA)
£5.0m
£27.0m
C
5.3x
Cash / NAV
Invested
Investment Valuation
• Cazoo is one the UK's fastest-growing digital businesses and leading online
car retailers, allowing customers to research and purchase cars online
• Launched in 2018 by founder Alex Chesterman (founder of LoveFilm and
Zoopla)
• 6 locations across the UK with 3 more opening shortly
• Draper Esprit initially invested in Cazoo as part of our fund of funds
investment programme via Stride Capital who backed Cazoo in November
2018
•
In June 2020, Plc invested directly in the company’s £25.0 million Series C
round, and then participated in their latest £240.0 million Series D round in
October 2020 - Other investors in the Series D round include General
Catalyst, D1 Capital Partners, and Blackrock, amongst others
• Team of over 700 employees and growing, appointed Fern Wake as COO
and Stephen Morana as CFO in June 2020
LR
£10.0m
£17.5m
1.7x
Cash / NAV
Invested
Investment Valuation
New to the
portfolio
& the core
£27m
£702m
Gross
Portfolio
Value
31st March 2020
Invested
Fair Value Movement
Movement
of £7.0m in
the period
16
Our fund of funds
Portfolio
Companies
Across all
funds
+350
Seed fund
investments
in the period
£3m
Total
Commitments
over 5-10 years
£17m drawn to
date
£45k
Average
investment per
seed companies
so far
Average equity
stake of 0.5%
~£41m
17
04. Interim results for the period
ended 30 Sept 2020
18
£594M
£683M
£703M
£702M
£M
£100M
£200M
£300M
£400M
£500M
£600M
£700M
£800M
FY19
H120
FY20
Invested
Realised
Fair Value
Movement
H121
Total
Increase
Decrease
£140M
£300M
£618M
£677M
£660M
£715M
343 pence
416 pence
524 pence
574 pence
555 pence
600 pence
£M
£100M
£200M
£300M
£400M
£500M
£600M
£700M
£800M
FY17
FY18
FY19
HY20
FY20
H121
Gross portfolio value progression
NAV progression
£32m
£106m
£73m
£35m
£15m
£16m
£40m
£106m
52%
14%
7%
7%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY17
FY18
FY19
FY20
H121
Cash Realised
% cash return on opening portfolio
19
Cash realisations
Realisations of £106 million in the period
Profit after tax and return on gross portfolio
Cash realisations as % opening portfolio
£29m
£61m
£111m
£40m
£54m
43%
30%
40%
9%
10%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
-
£20m
£40m
£60m
£80m
£100m
£120m
FY17
FY18
FY19
FY20
H121
Profit after tax
Return on Gross Portfolio
20
05. Outlook
21
• Our unique model positions us well to realise value for shareholders even in highly uncertain
times from the fast growth in European private technology businesses
• We will continue to invest in our model and infrastructure allowing us to scale while
maintaining the discipline for which we have become known
• We believe there is significant opportunity to deploy further capital driven by a growing
European venture capital market, and an accelerated transition to digital driven by the COVID-
19 pandemic. However, we remain mindful of market uncertainty and increased pressures on
the global economy resulting from the ongoing pandemic
• We continue to explore ways to scale the co-investment model, which provides improved
access to the best deals and third-party funds, as well as being a source of management fees
• We remain passionate about democratising entrepreneurship and fuelling jobs across the UK
and Europe
Looking forward to H2
@draperesprit
Thank you
For further information:
Martin Davis, Chief Executive Officer
martin.davis@draperesprit.com
Ben Wilkinson, Chief Financial Officer
ben.wilkinson@draperesprit.com
Stuart Chapman, Director
Stuart.chapman@draperesprit.com
22
23
06. Appendix
24
Gross portfolio value table
*Fully diluted interest categorized as follows: Cat A: 0-5%, Cat B: 6-10%, Cat C: 11-15, Cat D: 16-25%, Cat E: >25%
Fair Value of Investments
31 Mar 2020
£’000s
Investments
£’000s
Realisations
£’000s
Draper Esprit
(Ireland)
Limited
£’000s
Movement in
Fair Value
£’000s
Fair Value of
Investments
31 Sep 2020
£’000s
Interest
FD category*
at reporting
date
Investments
Trustpilot
65.3
—
—
—
15.6
80.9
C
Graphcore
86.8
—
—
—
(6.3)
80.5
A
UiPath
28.0
—
(2.5)
—
11.2
36.7
A
Ravenpack
30.9
—
—
—
1.0
31.9
D
M-Files
20.0
—
—
—
7.0
27.0
B
Aircall
24.3
1.0
—
—
(2.0)
23.3
B
Revolut
21.9
—
—
—
—
21.9
A
Smava
16.7
—
—
—
2.0
18.7
B
Perbox
19.9
—
—
—
(1.3)
18.6
C
Ledger
17.7
—
—
—
—
17.7
B
Cazoo
—
10.0
—
—
7.5
17.5
A
ThoughtMachine
17.4
—
—
—
—
17.4
B
SportPursuit
11.1
—
—
—
3.2
14.3
E
ICEYE
14.0
—
—
—
—
14.0
A
Aiven
12.8
—
—
—
—
12.8
B
Remaining portfolio
314.4
21.3
(103.1)
—
34.4
267.0
—
Total
701.1
32.3
(105.6)
—
72.3
700.2
Co-Invest assigned to plc
1.8
—
—
—
0.4
2.2
Gross Portfolio Value
702.9
32.3
(105.6)
—
72.7
702.4
Carry external
(40.6)
—
—
—
(10.8)
(51.4)
Portfolio deferred tax
(5.3)
—
—
—
(1.3)
(6.6)
Trading carry & co-invest
0.3
—
—
—
0.1
0.4
Draper Esprit (Ireland) Limited
0.0
—
—
4.3
(4.3)
0.0
Net portfolio value
657.3
32.3
(105.6)
4.3
56.4
644.8
25
Consolidated statement of comprehensive income ended 30 Sept 2020
Notes
Unaudited Period Ended
30 Sep 2020
£’000s
Unaudited Period Ended
30 Sep 2019
£’000s
Audited Year ended
31 Mar 2020
£’000s
Change in unrealised gains on investments held at fair value through the profit and loss
10
56,416
57,646
40,755
Fee income
6,053
5,480
11,255
Total investment income
62,469
63,126
52,010
Operating expenses
General administrative expenses
(6,611)
(5,005)
(9,810)
Depreciation and amortisation
(310)
(219)
(520)
Share based payments – resulting from company share option scheme
(283)
(442)
(990)
Investments and acquisition costs
(121)
(45)
(239)
Total operating costs
(7,325)
(5,711)
(11,559)
Profit from operations
55,144
57,415
40,451
Finance (expense)/income
Net finance (expense)/income
6
(1,543)
1,288
(68)
Operating profit before tax
53,610
58,703
40,383
Income taxes
13
199
—
(17)
Profit for the year
53,809
58,703
40,366
Other comprehensive income/(expense)
—
—
—
Total comprehensive income for the year
53,809
58,703
40,366
Profit attributable to:
Owners of the parent
53,809
58,307
39,707
Non-controlling interest^
—
396
659
Earnings per share attributable to owners of the Parent:
Basic earnings per weighted average shares (pence)
7
45
49
34
Diluted earnings per weighted average shares (pence)
7
45
47
33
^ On 10 March 2020, the Group acquired the remaining interest in Encore Ventures LLP and as such no profit after 10 March 2020 is attributable to the non-controlling interest – see Note 18 for further details in the Annual Report.
26
Financial position as of 30 Sept 2020
Notes
Unaudited
31 March 2020
£’000s
Unaudited
31 Sep 2019
£’000s
Audited
31 Mar 2020
£’000s
Non-current assets
Intangible assets
8
9,977
10,079
10,028
Investments in associates
9
258
258
258
Financial assets held at fair value through the profit or loss
10
644,809
638,452
657,333
Property, plant and equipment
1,596
1,823
1,760
Total non-current assets
656,640
650,612
669,379
Current assets
Trade and other receivables
3,734
8,357
7,719
Cash and cash equivalents
59,870
43,654
32,255
Restricted cash
12
2,255
1,878
1,883
Total current assets
65,859
53,889
41,857
Current liabilities
Trade and other payables
(6,708)
(5,361)
(5,038)
Lease liabilities
16
(372)
(310)
(358)
Total current liabilities
(7,080)
(5,671)
(5,396)
Non-current liabilities
Deferred tax
13
(412)
(621)
(611)
Loans and borrowings
12
536
(19,538)
(44,636)
Lease liabilities
16
(805)
(1,176)
(975)
Total non-current liabilities
(681)
(21,335)
(46,222)
Net assets
714,738
677,495
659,618
Equity
Share capital
14
1,192
1,179
1,189
Share premium account
14
401,752
395,747
400,726
Merger relief reserve
13,097
13,097
13,097
Share-based payments reserve – resulting from company share option scheme
15
2,621
2,155
2,339
Share-based payments reserve – resulting from acquisition of subsidiary
15
10,823
10,823
10,823
Retained earnings
285,253
254,044
231,444
Equity attributes to owners of parent
714,738
677,045
659,618
Non-controlling interests
—
450
—
Total equity
714,738
677,495
659,618
Net assets per share (pence)
7
600
574
555
27
We invest across four sectors in high growth European technology companies*
Consumer technology
New consumer-facing products,
innovative business models, and proven
execution capabilities that bring
exceptional capabilities enabled by
technology.
Enterprise technology
The software infrastructure, applications
and services that make enterprises more
productive, cost-efficient, and smoother
to run.
Hardware & Deeptech
The deeper technologies that will spark
advances in computing, consumer
electronics and other industries.
Digital Health & Wellness
Using digital and genomic technologies
to create new products and services for
the health and wellness market.
*Reporting threshold – companies with a
NAV of £1.0 million or more
26%
Split by
number of
companies
Our Portfolio
Core Portfolio Companies
Emerging Companies
Split by NAV
34%
37%
Split by
number of
companies
Split by NAV
37%
31%
Split by
number of
companies
Split by NAV
18%
6%
Split by
number of
companies
Split by NAV
10%
23
Total
Companies
in sector
25
Total
Companies
in sector
12
Total
Companies
in sector
7
Total
Companies
in sector
67
Total
Portfolio
Companies
Getbulb
b2x
28
Key portfolio companies underpin NAV growth
• Membership-based eCommerce business uses data to inspire
consumers to purchase products from sports and outdoor brands
at unbeatable prices in a premium, content-rich, personalised
environment
• Sales are focused on outdoor, running, snowsports, triathlon,
cycling, and health & wellbeing and works with over 1,000 top
sport and outdoor brands. The business has also built a portfolio
of high-quality, owned brands
• Data is used to recruit new customers to deliver 1-2-1
personalised content to their audience
• The proprietary technology platform uses sophisticated
algorithms and AI to target customers, delivering market leading
retention rates and CLTV / CAC
• SportPursuit continues their partnership with Size of Wales which
works with the Welsh Government, partners in Uganda, and
experts in Wales to deliver tree planting programs in Uganda and
Kenya. In the last year, SportPursuit have funded the planting of
100,000 trees.
C
£5.6m £14.3m 2.5x
Cash / NAV
Invested
Investment Valuation
• Online lending platform, Smava, provides easy access to the
best conditions for consumer loans from more than 25 banks
• Largest specialised loan marketplace in Germany, providing
access to over €3.0 billion a year in loans
•
In May, the company secured €57.0m in financing with debt
from Kreos Capital, along with equity from existing investors
Earlybird, Verdane, Vitruvian Partners and Runa Capital
• The platform offers an overview of 70 loans between €1,000
and €120,000 from over 20 banks and lending partners
allowing consumers select the loan that suits them and take
it out directly
• On average, Smava borrowers pay about 35% less interest
than the German national average
• Announced a new partnership with Commerzbank
C
£14.5m £18.7m 1.3x
Cash / NAV
Invested
Investment Valuation
• Leading big data analytics provider for financial services,
Ravenpack, products allow clients to enhance returns,
reduce risk and increase efficiency by systematically
incorporating the effects of public information in their
models or workflows Clients include some of the most
successful global hedge funds, banks, and asset managers
• Oct. 2019 the business raised a Series B Round of US$10.0m
from the technology advisory and investment firm GP
Bullhound. The funds are being used to expand to Asia,
establishing an office in Sydney and to diversifying their
product offering to better serve corporate customers
• Ravenpack has announced partnerships with both Wall
Street Horizon, a leading provider of market-moving
corporate event data, and Cosaic, a leader in the field of
interactive visualization tools
• Launched an Insider Transactions Data Solution and a free
2020 US Election Media Monitoring Insights and free
Coronavirus monitoring insights
LR
£7.5m £31.9m 4.3x
Cash / NAV
Invested
Investment Valuation
Valuation key
LR: Valuation based on
last round price
C: Valuation based on
a set of comparable
listed peers
29
Key portfolio companies underpin NAV growth
Invested
Investment Valuation
• Sep. 2020 fintech company, Revolut, celebrated 3 years of
business and 500k business customers since its launch in
2017. currently boasts 12 m+ personal customers, is supported
in 35 countries and has 30+ in-app currencies
• Feb 2020, Revolut raised a US$500.0m Series D round led by
TCV, which was subsequently topped up in July by a further
US$80.0m by TSG Consumer Partners. Funding enabled the
company to build new products, grow into new markets,
enhance its existing product suite for users, and further
develop operational infrastructure
• Launched Revolut Jr. for under 17s to help teach financial
literacy and money management to children and delivered
several accounting software integrations on Revolut Business
• Business perks now include Indeed, Zipcar, Advertio, PayFit
UK, and Covve Scan
•
Introduced SEPA Instant Euro Transfer on Revolut Business,
and launched in Australia and Japan
LR
£7.4m £21.9m 2.9x
Cash / NAV
• The commercial radar imaging satellite company, provides
imaging services, designed to deliver frequent coverage,
24/7, to help clients resolve challenges in sectors such as
maritime, disaster management, insurance, and finance
• Raised a US$87.0m Series C with participation from return
investors True Ventures, OTB Ventures, Finnish Industry
Investment (Tesi), Draper Esprit, DNX Ventures, Draper
Associates, Seraphim Capital, Promus Ventures and Space
Angels, New Space Capital and Luxembourg Future Fund
• Successfully launched 5 satellite missions, starting with the
first ever small SAR satellite launched in January 2018 - ICEYE
plans to launch 4 more SAR satellites this year with at least
an additional 8 in 2021
• Provides radar imaging data from its commercial synthetic-
aperture radar (SAR) satellite constellation to the
International Charter: Space and Major Disasters for use in
monitoring and response activities
£7.5m £14.0m 1.9x
LR
Cash / NAV
Invested
Investment Valuation
• The cryptocurrency and blockchain hardware security wallet
successfully launched the Nano X product and Ledger live
companion software
• The Nano X received CSPN (First Level Security Certificate)
certification issued by the National Agency for Information
Systems Security (ANSSI)
• Committed to furthering its pursuit of partnerships like the
ones with Engie, and Nomura
• Launched new capability allowing for crypto assets to be
secured, bought, managed, and exchanged directly through
Ledger Live via its partner Changelly
• announced support for Algorand (ALGO) and Algorand
Standard Assets (ASA) in its software application, Ledger
Live, bringing the total amount of supported coins to 27 and
more than 1500 tokens
• The company now has 200 global employees working in its
Paris, New York, Hong Kong, and Vierzon bases and 1 m users
in over 165 countries with 1.5 m units sold
£17.7m £17.7m
C
1.0x
Cash / NAV
Invested
Investment Valuation
30
Key portfolio companies underpin NAV growth
Cash / NAV
• Offers cloud native core banking infrastructure to both
incumbent and challenger banks
• Completed an US$83.0m round led by Draper Esprit and
joined by Lloyds Banking Group, IQ Capital, Backed and
Playfair Capital. In July 2020 extended the Series B round to
US$125.0m - the US$42.0m extension was led by Eurazeo.
British Patient Capital and SEB joined the round as new
investors
• Former HSBC Group COO Andy Maguire joined as new
Chairman in Sept 2020
• The Vault now runs on every major cloud infrastructure
provider including Google Cloud Platform, Amazon Web
Services, Microsoft Azure and IBM Cloud and can be deployed
on either the bank’s choice of cloud provider, on premise, in
a hybrid cloud using Red Hat OpenShift, or as a SaaS product
• Monese and Curve announced they will be adopting Thought
Machine's platform
LR
£16.5m £17.4m 1.1x
Invested
Investment Valuation
• Aiven, the data infrastructure management platform, allows
developers to focus on application building while the platform
manages open-source databases and messaging systems for
business clients on all major cloud platforms
• Operates with 8 open-source products, 6 Cloud platforms,
and covers 87 regions with headquarters in Boston, Berlin,
Sydney, and Helsinki
• Released Kafka MirrorMaker 2 as a stand-alone service,
enabling enterprises to access the Apache Kafka ecosystem
more easily
• Announced in July - the launch of Karapace, an open-source
tool that serves as a drop-in replacement for Confluent’s
Kafka REST and Schema Registry
•
In the period hired; VP of marketing and VP of sales EMEA to
fuel Aiven’s global expansion
LR
£5.0m £12.8m 2.6x
Cash / NAV
Invested
Investment Valuation
• Perkbox is an employee wellbeing platform that provides a
unique employee experience, enriching the personal and
working life of employees. It offers a suite of products
including a platform with access to best-in-class Perks,
Recognition, Insights and Medical
•
In the period, secured new partnerships with Action Aid,
Dakota Hotel, Igloo Energy, and Landmark, while existing
partners Gymshark and Krispy Kreme have enhanced their
benefits
C
£14.0m £18.6m 1.3x
Cash / NAV
Invested
Investment Valuation
Key portfolio companies underpin NAV growth
• Graphcore, the machine intelligence semi-conductor
company, develops IPUs (Intelligent Processing Units) which
enable unprecedented levels of compute
•
In July 2020 the IPU developer launched a new chip, the
GC200, and a new IPU Machine that runs on it, the M2000,
which Graphcore says is the first AI computer to achieve a
petaflop of processing power “in the size of a pizza box”
• Post period-end Graphcore released new polar SDK 1.3, which
includes new optimisations and improvements to help
developers run their models faster and more efficiently
• With offices in Bristol, London, Cambridge, Palo Alto, Oslo,
Beijing, Hsinchu, Seoul, New York, Seattle, and Austin, the
global company continues to scale in size, increasing to 450+
employees from its previously reported +200 employees
LR
£13.7m £80.5m 5.9x
Cash / NAV
Invested
Investment Valuation
• Aircall is a cloud-based call centre system, with offices in
Paris and New York
• More than 300 employees, is available in over 80+ countries,
with 60,000 users world-wide
• May 2020 Aircall raised US$65.0m in Series C funding, led by
DTCP with participation from new investors Swisscom and
Adam Street - Existing investors including Draper Esprit,
eFounders, Balderton Capital and NextWorld participated in
the round
• This most recent round brings the company’s total funding to
date to over US$100.0m and will be used to expand with
more developers, a bigger sales team, and a new office
in Australia
• New customers include food delivery startup Door Dash Inc.
• Adding features to improve sales and service, such as
features that analyse the emotion in customers voices
LR
£10.7m £23.3m 2.2x
Cash / NAV
Invested
Investment Valuation
31
32
Meet the team
Stuart Chapman -
Director
Ben Wilkinson –
CFO
Simon Cook –
Founding Partner
Will Turner –
Managing Partner
Growth
Richard Marsh –
Senior Partner
Vinoth Jayakumar –
Partner
Christoph Hornung –
Investment Director
Inga Deakin –
Principal
Alan Duncan –
Venture Partner
Bindi Karia –
Venture Partner
Vishal Gulati –
Venture Partner
Philip O’Reilly –
Head of Deal Execution
Edel Coen –
Head of Dealflow
George Chalmers –
Associate
James Clark –
Marketing Director
Martin Davis –
CEO
Nicola McClafferty –
Partner
Brian Caulfield –
Venture Partner
Jonathan Sibilia –
Partner, Secondaries &
Fund of Funds
David Cummings –
Venture Partner
The partners are supported by our internal
support teams; one team is our research,
deal execution and marketing group and
the other our finance, funding and
operations group.
The team of
partners and our
portfolio
companies are
also supported
by the global
Draper Venture
Network,
headquartered in
Silicon Valley but
with partners
across the globe,
with additional
business
development
resources
available to any
partner or
portfolio
company in
many regions.
Focused on long-term winners
in technology
33
Profile of core portfolio companies (on average)
• ~60%+ Gross Margin
• £28.9m Average Holding Value
• 9.0% Average Stake
Core Holdings (15 companies) represent
56% of NAV and over 60% of Gross
Portfolio Value*
Whilst we make numerous earlier stage investments to capture upside, we focus our capital on a small
number of core holdings, as well as advantageous secondary opportunities.
*Core companies are those with a Fair Value of over £12m
$72m
$117m
$240m
$0m
$50m
$100m
$150m
$200m
$250m
$300m
FY19A
FY20B
FY21B
Average revenues - Core Portfolio
62%
105%
-
~35%
Emerging
Companies
~56%
Core
Holdings
34
Track Record
• Historical track record of
over 20% IRR prior to IPO***
• Over 125+ deals since 2006
• Over $13.0bn value of exits
since 2010
*** Aggregate portfolio return since 2010 of
the Company
^ Peak Games includes escrow amounts due
*UiPath, and Codility represent partial disposals and Draper Esprit continue to hold stakes in these companies
2020
2019
2018
2017
2016
3.5x
2.3x
3.1x
2.1x
4.5x
2.2x 2.0x
1.7x
8.3x
7.3x
2.6x
1.9x
0.4x 0.1x
7.6x
1.9x
1.6x
0.0x
Track Record
Nav progression for deals >£2m
The value of rounds above €100
million accounts for 33% of the
total investments in Q4 2019
35
1.7x
2.1x
2.7x
3.5x
1.3x
1.3x
1.3x
2.1x
1.5x
1.5x
1.5x
3.1x
8.3x
8.3x
1.8x
1.8x
2.1x
2.3x
2.3x
1.3x
1.9x
2.6x
2.6x
2.7x
2.7x
2.7x
1.5x
2.1x
2.4x
7.6x
7.3x
2.4x
7.1x
7.6x
1.7x
1.9x
1.2x
1.6x
1.7x
3.1x
3.5x
4.3x
4.5x
4.5x
1.0x
2.0x
4.0x
8.0x
JUN-16
SEPT-16
MAR-17
SEP-17
MAR-18
SEP-18
MAR-19
SEP-19
MAR-20
SEP-20
Peak Games (£88.0m)
UiPath (£7.1m)
Transferwise (£32.6m)
Grapeshot (£11.5m)
Podpoint (£12.4m)
Clavis Insight (£15.3m)
Graze (£6.3m)
Tails.com (£2.9m)
Horizon (£2.9m)
Movidius (£27.5m)
Qosmos (£8.0m)
Datahug (£3.6m)
Stripe (£1.7m)
36
Partnership with Earlybird
Expanding our presence in the European market
• Continue to co-invest alongside the team
at Earlybird. We have joint deal teams
which focus on specific industries, sharing
insight and best practice
Co-investments via EB VI & Growth Opportunities
Primary investments
Acquisition of stakes
in Earlybird IV and
Digital East I
Secondary investments
•
In Jan 2019, Draper Esprit furthered its strategic partnership with Earlybird, acquiring a
27% interest in Earlybird’s EB IV fund for approx. £55m (including holdings in Peak).
•
In May 2020, post period end Zynga entered into agreement to acquire Peak for
US$1.8bn. The acquisition is expected to close in Q3 2020.
• The agreement indicates a fair value holding for Draper Esprit in Peak of approx. £88
million (depending upon the Zynga share price at the time), approx. £20 million
(approx. 10p NAV per share) uplift to the fair value referenced in the 31st March 2020
results.
£115.7m
Total invested
in EB
£152.6m
Valuation of
EB
£25.4m 3.5x
Invested Cash/NAV
Our ESG Ambition
Our mission is to empower Europe to invent the future. We want that future to be sustainable, fair and accessible to
all. We aim to use our platform in VC to encourage and promote our values and ESG considerations in developing
best-in class technology companies and achieving strong returns for our investors
• UN Sustainable Development Goals
• Mapping the Portfolio:
• Accomplished mapping exercise - working group to mapped out portfolio against UNPRI Sustainability Goals
• As a fundamental part of the 2030 Agenda for Sustainable Development (adopted by all United Nations Member States in 2015), 17
overarching sustainable development goals (“SDGs”) were developed, which the UN deem to be a "blueprint to achieve a better and
more sustainable future for all“
• Berenberg Report : The report came back favorably stating of the Draper Esprit portfolio, 35 firms or 57% of our NAV, meet the criteria
of Berenberg’s BSDGs framework (with anything above 45% being considered high) and a recommendation to investors to consider
Draper Esprit for their ESG portfolio’s
• ESG Working Group
• Dedicated ESG work group to establishing and working through board approved KPIs
• Next step is team training
• Continued focus at Board level
• Responsible investment policy established and agreed
• Bi-monthly ESG communication
• Looking to see how we can bring portfolio companies board’s attention to ESG
Our ESG ambitions are an ongoing and evolving process that we are committed to build and develop over time.
Meaningful steps have been taken in this period across multiple areas within our business.
37
Draper Esprit Group Responsible Investment & Sustainability Policy
Target ESG Standards
Our aim is to invest in businesses and entrepreneurs who are committed to changing the world in a positive way by embodying the following
sustainable practices and standards in their business activities:
1. Emphasis on sustainability and the protection of the natural environment (including in the supply chain) with a commitment to the
material reduction and balancing of company-related carbon emissions.
2. Encouraging diversity and inclusion at all levels of the business including at a management level, through policy and direct action, and
enforcing a zero tolerance against any type of discrimination.
3. Ensuring that all people involved in the operations of the business, including in the broader supply chain, are treated fairly, with dignity,
and with access to safe conditions that encourage healthy working.
4. Entrenching robust structures of corporate governance with identified responsibilities and procedures that are proportionate to the scale of
the business and aligned with a leadership culture that is grounded in effective risk management and accountability.
5. Acting with integrity and strong business ethics evidenced through positive engagement with stakeholders in line with all applicable local
and international laws, regulations and sector / territory specific standards.
6. Positively addressing customer / client interests, including concerns around privacy, inclusion, health and safety, and marketing.
7. Commitment to the inclusion of a strategic sustainability board agenda item that is discussed at least annually.
8. Encouraging transparency and a commitment to monitoring and financial / nonfinancial reporting upon ESG progress within the business.
38
39
Long term investment
With a plc balance sheet, we can take a
longer view, enabling us to back
companies from scale up to IPO.
Global networks
As a global network, the Draper Venture
Network enables our portfolio to access
markets as they shift.
We have partners in Asia, the US, and the
Middle East. For both commercial
connections and future funding, our
portfolio is well supported to
internationalise.
Hands on support
When we invest, we offer more than
money. We take a seat on the board of
the company, to offer support as the
company grows.
We also run events and offer specific
training for portfolio companies.
How we help companies grow