18 May 2012 07:00
SPARK Ventures plc ("SPARK" or the Company)
18 May 2012
Partial sale and substantial increase in portfolio company valuation
The Company is pleased to announce that Notonthehighstreet.com ("NOTHS"), which SPARK backed as the first outside investor as a start-up in 2007, has closed a substantial financing round with a new investor at a significant premium to the previous financing round which closed in June 2010 and from which SPARK's previous valuation was derived.
As a consequence, the value attributed to SPARK's stake, which will be included in the Company's results for the year ended 31 March 2012, has increased from £4.5m to £11.0m - a rise of £6.6m or 148% of the previous value.
As part of this funding round (having been an investor for 5 years) and in-line with its investing policy, SPARK has taken the opportunity to sell-down a portion of its stake in NOTHS and has received consideration of £0.8m for selling 7.3% of its stake. Following this sell-down and new outside investment in NOTHS, SPARK's shareholding has reduced to 16.2% of NOTHS' equity capital, equivalent to a value of £10.2m at the current valuation.
NOTHS has grown significantly over recent years and the finance raised will be used to expand the business further. SPARK originally backed the business as a start-up in 2007 and provided £0.7m of finance in total. Today, SPARK plays an active role on the NOTHS board alongside several more recent venture capital investors.
To date, SPARK has received £1.8m as sales proceeds from NOTHS whilst retaining a stake currently worth £10.2m.The IRR on this investment for SPARK is currently 83% - a remarkable performance and one for which we wish to congratulate the founders, Holly Tucker and Sophie Cornish.
SPARK will provide details of all other valuation changes when it releases its annual results, currently expected to be in the week beginning 18 June 2012.
For further information:
SPARK Venture Management Ltd 020 7851 7777
Thomas Teichman, Chairman
SPARK Ventures plc 020 7851 7777
Andrew Betton, Company Secretary
Canaccord Genuity Limited 020 7523 8350
Mark Dickenson / Sebastian Jones