Sydney-based software specialist investor EVP has launched its fourth venture capital fund, notifying investors of its plans to commence raising a $100m fund. This fourth fund will take EVP’s total funds under management to over $250m.
The firm already has a portfolio of over 40 B2B SaaS and marketplace companies. These include some of Australia and New Zealand’s best-known startups, such as global workforce management software Deputy, proposal development software company Ignition, shipping and logistics company Shippit and the up-and-coming tax for sole trader disruptor, Hnry.
EVP, previously known as Equity Venture Partners, was founded by Les Szekely and Howard Leibman in 2014. Szekely and Leibman joined forces with longstanding track records as startup investors. Les was the first investor in HotelClub in 1999, and again the first investor in SiteMinder in 2007. SiteMinder listed on the ASX in November with a market capitalisation of $1.36b, with Les remaining on the Board.
EVP launched its first $25m fund in 2016, investing across 11 B2B software companies. Within five years, the fund has seen three exits and is currently sitting at a valuation uplift of 3.1x.
“We’ve been fortunate to partner with outstanding founders across all three funds,” said EVP Partner Howard Leibman. “We’re seeing exceptional growth across the portfolio and we’re incredibly pleased with how all three funds are performing.”
“A number of our companies are already emerging as clear category leaders. Businesses like Ignition, Lumary, Shippit and Hnry already underpin strong returns across all three funds, with each likely to return a multiple of the funds’ entire committed capital in due course.”
“Venture capital is about the long game. We’ve had numerous opportunities to take early exits on some of our best companies, but we’ve seen time and time again that the real value comes from holding onto great assets for as long as you can. Our founding portfolio, which includes companies such as SiteMinder and HotelClub, has seen a 25x valuation uplift.”
The fresh raise for EVP comes following the full allocation of its third fund, which has been invested across 13 early-stage software companies in less than two years. While it’s still early days for EVP’s third fund which was raised in 2020, the fund is already seeing strong performance, with average revenue growth of 185% across the portfolio.
As Australia’s startup ecosystem continues to mature, EVP said that the number of high quality investment opportunities has grown materially.
“Our pipeline is as strong as it’s ever been,” said EVP Partner Justin Lipman.
“We meet about 100 new founders each month. But for EVP, the metric we really care about is the pool of founders that align entirely with our B2B software focus that we’re tracking and cultivating relationships with. At present that pool of warm relationships is at about 300, and it’s almost certain that a majority of our Fund IV investments will come from this group. We take our time to get to know founders. We knew 50% of our Fund III founders for two years before we led their Series A.”
“Our position in the market is very clear. We’re the only entirely software-specialised venture fund in Australia – we invest almost exclusively in business-to-business SaaS or marketplace companies. This clear focus helps ensure that we serve as genuine value-add partners to our Founders – not just through the programs and services we offer, but through the relevance of the experience that we bring to the table. We’ve seen the B2B software scaling journey play out over 40 companies, and have a deep understanding of the playbook.”
In all three EVP funds, the firm’s partners speak for the largest single investment. The EVP partners have committed a minimum $15m to the current raise.
“Our investor base includes some 400 private investors and family offices, many of whom have supported EVP through multiple funds,” said Leibman.
“Our message has always been “invest alongside us”. I think our investors appreciate that the EVP partners have material skin in the game.”
For more information on the opportunity, please express interest here.
Sydney-based software specialist investor EVP has launched its fourth venture capital fund, notifying investors of its plans to commence raising a $100m fund. This fourth fund will take EVP’s total funds under management to over $250m.
The firm already has a portfolio of over 40 B2B SaaS and marketplace companies. These include some of Australia and New Zealand’s best-known startups, such as global workforce management software Deputy, proposal development software company Ignition, shipping and logistics company Shippit and the up-and-coming tax for sole trader disruptor, Hnry.
EVP, previously known as Equity Venture Partners, was founded by Les Szekely and Howard Leibman in 2014. Szekely and Leibman joined forces with longstanding track records as startup investors. Les was the first investor in HotelClub in 1999, and again the first investor in SiteMinder in 2007. SiteMinder listed on the ASX in November with a market capitalisation of $1.36b, with Les remaining on the Board.
EVP launched its first $25m fund in 2016, investing across 11 B2B software companies. Within five years, the fund has seen three exits and is currently sitting at a valuation uplift of 3.1x.
“We’ve been fortunate to partner with outstanding founders across all three funds,” said EVP Partner Howard Leibman. “We’re seeing exceptional growth across the portfolio and we’re incredibly pleased with how all three funds are performing.”
“A number of our companies are already emerging as clear category leaders. Businesses like Ignition, Lumary, Shippit and Hnry already underpin strong returns across all three funds, with each likely to return a multiple of the funds’ entire committed capital in due course.”
“Venture capital is about the long game. We’ve had numerous opportunities to take early exits on some of our best companies, but we’ve seen time and time again that the real value comes from holding onto great assets for as long as you can. Our founding portfolio, which includes companies such as SiteMinder and HotelClub, has seen a 25x valuation uplift.”
The fresh raise for EVP comes following the full allocation of its third fund, which has been invested across 13 early-stage software companies in less than two years. While it’s still early days for EVP’s third fund which was raised in 2020, the fund is already seeing strong performance, with average revenue growth of 185% across the portfolio.
As Australia’s startup ecosystem continues to mature, EVP said that the number of high quality investment opportunities has grown materially.
“Our pipeline is as strong as it’s ever been,” said EVP Partner Justin Lipman.
“We meet about 100 new founders each month. But for EVP, the metric we really care about is the pool of founders that align entirely with our B2B software focus that we’re tracking and cultivating relationships with. At present that pool of warm relationships is at about 300, and it’s almost certain that a majority of our Fund IV investments will come from this group. We take our time to get to know founders. We knew 50% of our Fund III founders for two years before we led their Series A.”
“Our position in the market is very clear. We’re the only entirely software-specialised venture fund in Australia – we invest almost exclusively in business-to-business SaaS or marketplace companies. This clear focus helps ensure that we serve as genuine value-add partners to our Founders – not just through the programs and services we offer, but through the relevance of the experience that we bring to the table. We’ve seen the B2B software scaling journey play out over 40 companies, and have a deep understanding of the playbook.”
In all three EVP funds, the firm’s partners speak for the largest single investment. The EVP partners have committed a minimum $15m to the current raise.
“Our investor base includes some 400 private investors and family offices, many of whom have supported EVP through multiple funds,” said Leibman.
“Our message has always been “invest alongside us”. I think our investors appreciate that the EVP partners have material skin in the game.”
For more information on the opportunity, please express interest here.