Paddy MccGwire presents overview of Series B&C growth funding market for European tech companies

Paddy MccGwire, Silverpeak Managing Partner, spoke at the inaugural ScaleUp Conference this week.

The event provided technology entrepreneurs with insights into the current state of the growth funding landscape and the technology sector at large. with a panel of expert speakers from the Scaleup Group, Silverpeak and TechMarketView followed by entrepreneurs, from both private and public companies, sharing their scaleup journeys.

Paddy’s keynote provided an overview of the Series B&C growth funding market for European tech companies highlighting:

  • The funding environment in the two years to Q2 2022 has been an extraordinary trend aberration
  • Investment in Q3 2022 fell 65% from Q2, to the same as Q3 2019, which was a record level of investment
  • The UK had the biggest reduction in number of investments, but still leads Europe by number and value
  • Series C megadeals of €100m+ fell from 42% to 7% in Q3

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If you would like to discuss this report please get in touch with Paddy MccGwire, pm@silverpeakib.com

 

Silverpeak co-hosts Leadership dinner for data-rich businesses

On the evening of 5th July, Spectrum, the technology sector executive search firm, Silverpeak, the mid-market tech-focused corporate finance advisor and Squire Patton Boggs the global law firm, co-hosted a Data Leadership Dinner.

We brought together 15 senior executives for a ‘Chatham House rule’ discussion on data businesses during a private dinner in Central London.

The key points of debate and discussion were:

  • What makes a business a data business?
  • The origins of businesses that are now data businesses – what problem is being solved
  • What is the value of data?
  • The role of AI
  • The necessity for data to deliver actionable insights
  • The 3 layers of data
  • The role of the edge to cut out noise
  • The residual value of data
  • How data businesses are valued, and the challenges associated with valuing data businesses – including data ownership

Silverpeak co-hosts leadership dinner

On the evening of 10th May, Silverpeak, the mid-market technology specialists representing European growth businesses in M&A and financing transactions, Spectrum, the retained executive search and HR consulting firm for the technology sector, and Squire Patton Boggs, the global law firm, co-hosted a Digital Transformation Leadership Dinner.

We brought together 15 senior executives and board members for a ‘Chatham House rule’ discussion on the digital transformation and IT services landscape during a private dinner in Central London.

The key points of debate and discussion were:

  • The barriers to digital adoption, including provider and client-side people capability, and the lack of understanding of how to best utilise technology post-transformation
  • The definition of digital transformation, including the position of the customer in the centre of any programme, the drive to simplicity and efficiency, and the replacement of legacy system
  • The 3rd wave of digital transformation being data (the 1st being digital and front end, and the 2nd being infrastructure
  • The potential for data implications and security risk to hold back digital transformation
  • The role of the pandemic in demonstrating what is possible in digital transformation in a short space of time
  • The people challenges: attrition, salary inflation, generational expectations and the challenges and opportunities associated with M&A

Silverpeak strengthens senior team with two new Partners and Marketing Director

We are delighted to start the year having a significant boost to the team with new additions and promotions at every level.

Following a successful 2021 and looking forward to working with many more exciting technology firms in the year ahead, we are delighted to announce the appointment of a new Partner, Nick Jones, who joins us from Equiteq. As recognition for their energy and dedication, we have also had three internal promotions, including David Ford to Partner. Having also recruited an additional VP, Associate and two Analysts in the last six months, we are set for an excellent year ahead.

New Partner – Nick Jones

Nick joins Silverpeak from Equiteq where he headed the global M & A team, giving him a real understanding of cross-border deals in the technology services and software sectors. He brings over 20 years of experience working with entrepreneurs and investors at every stage of their business evolution.

Nick also focuses on private equity coverage; having spent five years as a principal investing in SMEs at a French investment bank where he developed an understanding of the interface between entrepreneurs and ‘corporate’ lenders and investors – this knowledge is often key to creating value in transactions and giving good advice.

Nick says “Joining Silverpeak is a great opportunity for me to bring my experience and knowledge to a new team and work with a like-minded group of people who are passionate about technology businesses and share my dedication to unearthing the best solution for all stakeholders.”

Commenting on the appointment, Paddy MccGwire, Managing Partner, said “We are thrilled to have Nick join the team at this exciting time in our growth. He brings many years of experience in complementary sectors and has the energy and drive that we value in all our team members.”

Contact Nick: nj@silverpeakib.com

 

New Partner – David Ford

Many of you will know David, who has been with Silverpeak for four years.

He has been promoted from his Managing Director role to join the Partner team.

His experience in both industry and advisory enables him to understand which buyers or investors would derive the greatest value from any given deal and what it takes to get deals done in the technology sector. David’s operational experience is within the telecoms, satellites, location services, sensors and precision engineering sectors.

David says, “I am delighted to be joining the growing Partner team and to continue delivering the best value deals to clients whilst working with such great people.”

Pietro Strada, Managing Partner, said, “David has real sector insight gleaned from many years as a leader in technology businesses, which he brings to his transactions and in generating value for stakeholders.”

Contact David: df@silverpeakib.com

 

New Marketing Director – Emma Payne

Emma has joined Silverpeak as a consultant Marketing Director. She brings a 25-year track record of delivering measurable and effective marketing solutions in professional services industries.

Having spent her early career at Arthur Andersen in both local and global marketing roles, Emma worked in a couple of PE-backed firms before becoming Marketing Director at Lyceum Capital (Horizon). Since 2005, Emma has worked independently with firms such as EY, Investec, Freshfields, Bowmark Capital, Catalyst (Alantra), Livingstone (Arrowpoint).

Emma says, “It is an exciting time to be joining the Silverpeak team as it expands and looks set for strong growth and opportunities in 2022 and beyond.”

Contact Emma: ep@silverpeakib.com

Silverpeak sponsors the tenth Enterprise Awards in association with the WCIT

Silverpeak is delighted to continue its long association with The Enterprise Awards in association with the WCIT which celebrates and recognises the very best of the UK’s technology entrepreneurial talent with ‘The Oscars of the Technology Industry’.

Each year, hundreds of the movers and shakers of the UK technology sector – including entrepreneurs, investors, and advisors – come together to honour the best of the best, while raising funds for the WCIT Chosen Charity.

Celebrating its 10-year anniversary, the 2022 Awards ceremony will be a truly special occasion, hosted at the prestigious Goldsmiths’ Hall in the City of London in April 2022.

Uniquely focused on the founder rather than the businesses themselves, the Enterprise Awards boasted previous winners that have achieved prominence on both private and public markets. The judging panel is looking for examples of vision, growth, innovation, funding, use of capital, use of resources, strategy, execution, ambition, and determination to succeed.

Paddy MccGwire, Managing Partner, sits on the judging panel and is always excited each year to see the depth of talent in the industry.

The Enterprise Awards Alumni includes some of the most successful tech businesses in the UK, such as the leaders of Wise, Blue Prism, Quantexa, Darktrace, TPXimpact (formerly Panoply), and ActiveOps.

The 2022 award categories are as follows:

  • Emerging Entrepreneur – £1m – £3m annual revenue
  • Developing Entrepreneur – £3m – £20m annual revenue
  • Net Zero Entrepreneur – For CleanTech businesses (min. £500k annual revenue)
  • Enterprise Entrepreneur – annual revenue over £20m
  • Scale-Up Entrepreneur – > 50% growth pa (min. £1m annual revenue)
  • Public Sector Entrepreneur – for entrepreneurs targeting the public sector (min. £1m annual revenue)
  • Social Enterprise Entrepreneur – entrepreneurs with a business model that gives something back (min. £1m annual revenue)
  • Deep Tech Entrepreneur – for entrepreneurs with game-changing, innovative, unique, core technology (min. £1m annual revenue)

Deadline for entries: Monday 31 January 2022

For details of how to enter and to download an entry form, please go to www.enterprise-awards.co.uk

Silverpeak sponsor U.K. tech figures to row across the Atlantic Ocean

Two U.K. tech figures are to row across the Atlantic Ocean to raise money for a charity that funds social entrepreneurs from minority backgrounds.

Guy Rigby, founder and now chair of the Entrepreneurial Services Group at Smith & Williamson, and entrepreneur, investor David Murray, are looking to raise £1m for UnLtd, which has supported more than 15,000 social entrepreneurs in the U.K.

The brave pair will row the 3,000 miles in December 2021 from the Canaries to Antigua, which they hope to reach in February 2022, rowing individually, 2 hours on, 2 hours off, around the clock for the duration of the crossing.

UnLtd has previously backed startup firms, including Patchwork Hub, which built an accessible employment platform run by disabled people, as well as EduKit, which developed an app to help school staff understand and address the mental health needs of their students.

Over the last year, UnLtd supported 662 social entrepreneurs, 42% of whom identified as being from a Black, Asian or minority ethnic background and/or having a disability.

You can donate to their fundraising efforts here.

Silverpeak is delighted to support Guy and David in their attempt by sponsoring their safety equipment such as their personal locator beacons, life jackets, harnesses, and water pumps.

Silverpeak advises CloudTrade on sale to Advanced

Silverpeak acted as the exclusive financial advisor to CloudTrade on its sale to Advanced. CloudTrade is the leading provider to enterprise clients of e-invoicing, e-order and complex data capture services through its SaaS machine learning platform.

This is Silverpeak’s third software transaction in the last two weeks, reinforcing our expertise and experience advising software companies in Europe on both funding and M&A.

CloudTrade was founded in 2010 to offer a fresh approach to electronic document processing. Their unique, patented technology, enables companies to evolve past their reliance on paper or labour-intensive manual processing and transact digitally with their trading partners, irrespective of size or technical maturity. CloudTrade’s core product suite focuses on e-invoicing, including Universal Capture to automate all volumes and document types, Invoice Fraud Protection, as well as Intelligent Ordering Processing.

Silverpeak worked with the CloudTrade board to navigate multiple inbound approaches from global strategic buyers and generate competitive tension. This delivered multiple offers valuing the business at a strategic price, thus negating the need for a broader process. After engaging in a thorough preparation phase, the Silverpeak team worked to a tight timetable to quickly qualify the inbound approaches, negotiate the transaction and manage the process through to completion.

David Cocks, CloudTrade CEO, said, “Silverpeak spent the time to understand the goals of the shareholders and created an excellent Company overview with detailed numerical analysis. The team at Silverpeak took control of the whole process and without their diligence, tenacity and attention to detail, I have doubts whether it would have actually happened. It was really encouraging and exciting to have an experienced team working on our side, fully aligned with our objectives.”

Paddy MccGwire, Silverpeak Managing Partner leading the transaction said, ”This is a great outcome for David and his team at CloudTrade, demonstrating significant leverage to the investment round he received just over 3 years ago. Many transactions have a hurdle that appears during the process that needs to be overcome. This was no different. Silverpeak’s imaginative solution, working with the buyer, ensured we kept on track. Advanced is a very suitable strategic home for the business where the technology and platform can be fully exploited.”

Silverpeak advises Login VSI on significant growth investment from Wavecrest Growth Partners

Silverpeak acted as the exclusive financial advisor to Login VSI, the Amsterdam and Boston-based enterprise infrastructure software company dedicated to maximizing the end-user experience, on a significant growth investment by Boston-based Wavecrest Growth Partners. The funding will be used to expand all aspects of the business, specifically, sales, marketing, and product innovation.

Today’s modern enterprises need a continuous understanding of the application experience delivered to their corporate users, a need that has grown given the increase in remote work caused by the COVID-19 pandemic. Business-critical applications are being deployed in enterprise data centres (on-premises) and the cloud, further increasing performance variability and driving the need for multi-environment digital workspace testing. Login VSI’s flagship product, Login Enterprise, is an automated testing platform that assures business continuity and application performance while reducing risk. It tests the desktop and business applications from pre-production to production, thereby eliminating poor performance and downtime, increasing user productivity, and directly saving enterprises money.

The shareholders of Login VSI engaged Silverpeak to explore their options due to its deep expertise in enterprise software. As part of the process, Silverpeak approached an international audience of PE growth investors in the US, Europe and Asia, running a competitive selection process from which Wavecrest Growth Partners was chosen as management’s preferred partner with a strong understanding of enterprise infrastructure software.

The Silverpeak team played a critical role in negotiating a transaction structure, involving both primary and secondary, that ensured all shareholder objectives were met. As a result, the majority investment will provide full liquidity to existing investors, partial de-risking for management, as well as primary capital to enable the business to accelerate growth.

Eric-Jan van Leeuwen, Login VSI CEO, said, “Silverpeak engaged with us in a process that was highly collaborative. They helped us find the right investment partner for Login VSI at this stage of our growth. Their team and process were transparent and insightful.”

Paddy MccGwire, Silverpeak Managing Partner leading the transaction said, “It has been a pleasure to work with Eric-Jan, Gerhard and the Login team, helping them bring in the right partner for the next chapter of their journey. The majority of new business is already in the US, and this investment will enable them to fully exploit the opportunity.”

For more information please contact
Paddy MccGwire: pm@silverpeakib.com
Kieran Hall: kh@silverpeakib.com

Silverpeak advises Origami Energy on Series C funding round led by Barclays

Silverpeak, the technology investment bank, acted as the exclusive financial advisor to Origami on £20.5m of new funding to help drive its next phase of growth. Barclays PLC led the round, investing as part of their Sustainable Impact Capital initiative, set up to back companies that are focused on sustainability and driving the transition towards net zero. Follow-on investment was provided by Origami’s existing shareholders, including Octopus Ventures, Aggreko, and Cambridge Innovation Capital.

Origami is a technology company on a mission to build a green energy world, powered by smart technology. As ambitious climate targets drive a transition to renewables, energy systems are becoming more distributed, complex, and volatile. We cannot turn the wind and sun on or off to meet supply and demand in the same way that we have done previously with power stations. Smart digital solutions are required to better manage our power grid as more and more renewable assets are added. Powerful real-time solutions are critical to coordinate networks of renewables, flexible demand and energy storage, to build a green energy system that is efficient, profitable, and sustainable for the long term.

Origami’s trading and automation software provides power traders with real-time data and machine-learning decision support tools to reduce risk, improve visibility and capture valuable opportunities within new and rapidly evolving energy markets.This new investment enables Origami to enhance its products, serve a growing customer base and scale up for international markets. The success of this funding round also highlights the increasing investor appetite to back leading tech companies pursuing the reduction of global carbon emissions.

Silverpeak was engaged due to its expertise in SaaS / Software and fund raising to advise Origami on its Series C financing, positioning the company as a future global software leader in the energy sector. As part of the process, Silverpeak approached an international range of financial investors (VC & mega infrastructure funds looking to fund enabling technologies ) as well as strategic counterparties with a strong interest in renewable energy and ESG focused software investments.

Silverpeak assisted the Origami team in developing a clear and compelling equity story, prepared an in-depth international expansion fuelled business plan, actively supported management during their interaction with investors, and negotiated management friendly terms, resulting in a successful investment round with a Tier 1 ESG focused Financial Institution.

Peter Bance, Origami CEO, said, “Origami’s recent fund raise will help us become the leading independent technology platform for the energy sector, and accelerate the global transition to net zero. Silverpeak really understands technology companies, and they helped us ‘translate’ our equity story into a language that investors would easily understand.”

Paddy MccGwire, Silverpeak Managing Partner leading the transaction said, “Origami’s evolving SaaS platform is a game changer for the energy sector globally as it addresses the opportunities and liabilities of increasing volatility caused by renewable energy on the grid. We are very pleased to have advised the Origami team and sourced this Series C investment led by Barclay’s Sustainable Impact Capital with follow on from existing investors.”

For further information please contact Paddy MccGwire – pm@silverpeakib.com

SILVERPEAK SPACETECH REPORT: Investment in Space Technologies continues to accelerate

Augmenting its expertise in the deeptech, Silverpeak is actively advising companies in the space technology sector, and interfacing with a wide range of financial investors and corporates.

This new report provides an overview of the main themes in space tech, identifying some of the key trends, themes and transactions, and also looks at some of the questions that investors are grappling with.

It covers:

• The development of space sector investment, and main drivers

• Investor types and focus; and the recent SPAC phenomenon

• Subsectors:

• Launch vehicles
• Propulsion
• Satellite Comms
• Remote Sensing
• In-Orbit Services
• Ground Segment
• China market

Download report

Please contact David Ford df@silverpeakib.com to discuss any themes, trends or questions you may have regarding this report.