Draper Esprit reports 10% growth in value of portfolio despite Covid-19 challenges

The venture capital firm invested £32m (€36m) into two new companies, Cazoo and Ravelin, during the six month period

Draper Esprit reported profit after tax of £54m (€60m) for the period, down from £59m at the end of the same period last year.

Dublin-listed venture capital firm Draper Esprit has reported a 10% growth in its gross portfolio value for the six-month period up to September 30.

In a trading update issued this morning, the venture capital (VC) firm reported its gross portfolio value was £702m (€782m) at the end of September, down slightly from £703m (€783m) at the end of March.

The VC firm, which invests in and develops high growth digital technology businesses, also reported an increase of 8% in its net assets to £715m (€796m).

Draper Esprit reported profit after tax of £54m (€60m) for the period, down from £59m at the end of the same period last year.

Martin Davis, CEO at Draper Esprit, said despite the challenges associated with the Covid-19 pandemic, "our investment process continues to deliver."

Mr Davis said their portfolio value has held up at "record level", even after over £100m (€111m) of realisations.

Draper Esprit said the significant realisations during the period were predominantly generated by the realisations of Peak Games and TransferWise (as well as escrows and partial disposals).

The venture capital firm also invested £32m (€36m) in the period into two new companies, Cazoo and Ravelin.

Draper Esprit also committed to two new seed funds, bringing the total seed fund of funds portfolio to 22. Total commitments of approximately £41m (€46m), with total drawn of £17m (€19m). The majority of the remaining commitments will be drawn over the new three to five years.

The company also increased and extended their revolving credit facility with SVB and Investec by one year to £60m (€67m).

Mr Davis said the group has made "significant progress" in building the model which allows them "to scale our delivery and support our talented partners to identify and nurture even more of the best opportunities in European technology."

"We look forward to building on our strong first half performance with the goal of rewarding our investors further for their support," he said.