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Draper Esprit seeks funds for European investments as company profits soar
London and Dublin listed venture capital firm Draper Esprit announced on Friday that it will raise £176m in long-term capital to enable it to invest further in European technology companies.
The company, which already has around £570m of assets under management in venture capital businesses in Europe, said it intends to issue approximately 27.4m shares at a price of 420.00 pence each, representing a discount of 6.7% to the closing mid-market price of 450.00p per share on Thursday.
Simon Cook, chief executive of Draper Esprit, said: "This fundraise follows increased investor demand for exposure to Europe's high growth, privately owned technology companies."
Alongside this, the company released its annual results, showing that its profit after tax shot up by 97% to £65.3m over the course of the 12 months leading up to 31 March.
The company also reported that its gross primary portfolio value grew by 116% to £243.5m over the course of the year, and income from investments increased by 97% to £73.8m.
The company has invested in 20 new companies since its initial public offering in 2016.
The 2018 financial year saw the company turn its attention to crypto-currency with an £18m investment in French blockchain security firm Ledger.
2We have executed against our strategy, as set out at the time of the IPO. Our long-term capital, flexible approach and global networks, enable us to partner with the best entrepreneurs in Europe. We also continue to deliver the growth and scale in our portfolio that will drive sustainable returns for our shareholders. We look forward to the next financial year with confidence and optimism," said Cook.
As of 1410 BST, Draper Esprit's shares were down 0.89% at 446.00p.