Inveready Seed Capital VC closes with a 6,4x return, positioning it as one the top performing VC funds in Europe

Inveready Seed Capital VC, the first vehicle launched by the Inveready Group, closes its cycle after 11 years. The fund, which was born to invest in early stage technological companies, invested in a total of 35 companies, out of which 18 were exited. Today, 25 of these companies continue their activity, providing more than 3,000 jobs with a total of €150 mm of accumulated investments in R&D and carried out over the last few years.

Inveready Seed's portfolio was made up of 40% of companies in the life sciences and biotechnology sector, while the remaining 60% of investments focused on ICT technologies. The life sciences portfolio's performance has returned 5 times its investment, while for the ICT portfolio, the said multiple was a total of 8,5 times.

The fund carried out investments and exits in widely known companies such as MásMóvil (acquired by KKR, Providence and Cinven), Password Bank acquired by Symantec, Indisys by Intel, 3scale by Red Hat/IBM, or Palo Biofarma by licensing part of its development portfolio to Novartis. Several Inveready Seed portfolio companies have undertaken IPOs; highlighting, among other companies, MásMóvil’s initial exit to the BME Growth Market followed by its leap to the continuous market and incorporation into the IBEX35, as well as the IPOs in BME Growth Market of Atrys Health or Agile Contents.

Within the total returns made up of a total of 18 disinvestments, the sale of Más Móvil accounted for a total of 54% of the disinvested amount. Without this transaction, the multiple of the fund derived from the 17 remaining disinvestments equals 3 times the total amount invested by shareholders, which would continue to position it among the most profitable funds in the Venture Capital sector.

With the return to its shareholders of a total multiple of 6,4x times the size of the fund and an IRR of 25%, Inveready Seed Capital VC ranks as one of the most successful funds in the European Venture Capital sector, placing as the fourth most profitable fund among in the 2000 vintage, and the second if we compare only fully disinvested funds, according to the database published by Preqin.

"We are extremely satisfied with the return generated by the fund together with the social and economic impact it has had. The investment strategy based on capital efficiency, commitment to technological assets, and public financing focused on R & D and diversification has proven to be successful. Current results of the remaining funds by Inveready, which also follow this investment thesis, reaffirm us in this strategy", says Josep Maria Echarri, President of the Inveready Group and CEO of Inveready Seed.

"The fund has been accumulating disinvestments since 2011, reaching net profitability (distributions equal to total investor disbursements) in 2016, increasing year by year as additional

disinvestments materialized," says Roger Piqué, General Partner of the Inveready Group and Chief Investment Director at Inveready Seed.

In July 2020, Inveready Seed sold the remainder of its historical stake in MásMóvil under the public to private transaction launched by KKR, Providence, and Cinven. Furthermore, the remaining companies within the portfolio were sold to a third party in a secondary operation, an operation advised by Norgestion, as Financial Advisor, and Lexcrea, as Legal Adviser. This complies with the investment and disinvestment schedule intended at the launch of the fund.

Most relevant data regarding Inveready Seed Capital:

About Inveready Group.

Inveready is one of the leading Venture Capital Asset Managers in Spain, investing in early-stage technology-based companies.

Inveready invests in highly innovative technological companies through 4 specialized verticals (Venture Capital in Digital Technology, Venture Capital in Life Sciences, Venture Debt and Hybrid Financing for quoted companies in growth markets). Inveready has 136 active companies within its portfolio and more than 400 million assets under management. For the past 11 years they completed successful disinvestments in more than 36 companies, including MásMóvil, Palobiofarma, Avizorex, iSalud, Playgiga, Respiro, iAhorro and Voz Telecom. Other companies in the portfolio have been acquired by multinationals such as Intel, Symantec and Red Hat (IBM), and others listed in public markets such as the NASDAQ or MAB.

Empowering disruptive innovators has become part of our DNA.

As a consequence of this growth and track record, we proudly received several awards from ASCRI, such as Best Venture Capital Manager in Spain, Best VC Transaction, and Best Venture Debt Transaction and our latest award as the Most Consistent Top Performing Europe-Focused Private Debt Fund Manager by Preqin to our hybrid debt division.

• By Inveready Asset Management
• 07/10/2020
• Inveready, Inveready Seed Capital SCR