30
MMC VENTURES
BASE79
Investment
Date
2010 and
Follow-on
Sector
Digital Media
Location
London
Employees
70
ABOUT BASE79:
Base79 is a network for Video Creators, Content Owners
and Brands. It is the largest YouTube Multi-channel Network
(MCN) outside North America and was one of the leading
partners in YouTube’s Original Programming Initiative.
Base79 creates global audiences for video, partnering with
video rights holders, producers and brands to build online
audiences, claim and protect their intellectual property,
sell premium advertising, and generate new revenues on
YouTube and other platforms. According to comScore, almost
90 million people watch Base79 content every month.
RATIONALE FOR INVESTMENT:
•
Backing an outstanding management team and experienced
board
•
Investing in a technology and service proposition allowing
traditional content owners to address the rapid shift towards
online video consumption
•
Strong growth and commercial traction in the business itself,
combined with online video being the fastest growing subset of
the digital media market
•
Strong acquirer appetite driven by traditional media
businesses
GROWTH IN REVENUES AND EMPLOYMENT:
Since MMC first invested in 2010 there has been:
•
CAGR 151% revenue growth
•
10x increase in the number of employees
VALUE ADDED BY EIS MANAGER:
MMC invested in Base79 from an early stage and
continued its support over several rounds of funding,
alongside existing angel investors in the first instance
and latterly alongside a US institutional VC.
MMC worked closely with management in assessing the merit
of an offer to acquire the company by Rightser Group PLC.
The offer was accepted and the business sold in Q3 2014
for up to £50 million in cash and shares. This represents
a return of up to 5.3x investment for MMC investors.
AMOUNT INVESTED AND ANY CO-INVESTORS:
MMC: £3million
The Chernin Group and others: $10million
NEWVOICEMEDIA
Investment
Date
2012 and
Follow-on
Sector
Business
Software
Location
Basingstoke
Employees
170
ABOUT NEWVOICEMEDIA:
NewVoiceMedia is a leading provider of true cloud contact centre
and voice solutions, enabling businesses of all sizes to deliver a
personal and unique customer experience, quickly and securely.
Service availability and security are critical attributes of the
cloud. NewVoiceMedia guarantees 99.999% service availability,
and transparently backs that up with a Trust Site, which
offers real-time data on how its services are performing.
Established more than 10 years ago, NewVoiceMedia
has 200+ customers in 40 countries on five continents
covering most industry sectors. Customers include
Topcon, PhotoBox, DPD, Lumesse, QlikTech,
Cunningham Lyndsey, CEB Group and Parcelforce.
RATIONALE FOR INVESTMENT:
•
Strong management team with a track record of growing SaaS
businesses
•
A disruptive technology and business model in a large and
mature market
•
A strong growth rate combined with quality recurring revenue,
high gross margins and exceptionally low customer churn
•
High valuation potential driven by strong public market
comparables
GROWTH IN REVENUES AND EMPLOYMENT:
Since MMC first invested in 2012 there has been:
•
217% growth in revenues
•
152% growth in employees
VALUE ADDED BY EIS MANAGER:
MMC backed NewVoiceMedia when the business was starting to
see strong commercial traction. MMC provided investment capital
at a time when the business still did not meet the requirements
of larger growth investors. MMC’s funding gave management
the confidence to continue executing an aggressive expansion
plan and the Company has since gone on to raise two further
funding rounds of more than $85m of growth capital from
major UK and US investors at a significant uplift in valuation.
AMOUNT INVESTED AND ANY CO-INVESTORS:
MMC: £1.5 million
Co-investors: Eden, Notion Capital, Highland Capital, Bessemer
Venture Partners and Technology Crossover Ventures
Founded in 2000, MMC Ventures Ltd (MMC)
is an active investor and award-winning
venture fund manager. MMC is classified as
a generalist manager, with an established
investment strategy focused on
technology-enabled sectors where the UK
is a world leader – particularly financial and
business services, business software, digital
media and e-commerce.
MMC has circa £120m under management
and invests around £20 million per annum in a
combination of new investments and add-on
capital for existing portfolio companies. MMC
invests its EIS Funds alongside other money
that does not qualify for tax relief, reinforcing
their fundamental approach of investing on
the commercial merits of each transaction.
MMC specialises in fast-growth early-stage
UK-based businesses, partnering with
entrepreneurs and impressive management
teams to achieve substantial scale and
profitability.
MMC has an established track record
of trade sales and IPOs and its current
portfolio of investee companies have seen
a significant uplift in valuation from follow-
on institutional investors. MMC’s EIS Funds
are designed for investors seeking long-
term capital growth, or for those looking for
some significant upside potential as part
of a broader portfolio of EIS products.
Website
Email
Telephone
0207 938 2220
