Leading Venture Capital Fund, Spark Capital and MUIP Investing $20 Million in Liquidity Capital at a $100 Million Valuation
October 22, 2020 3:00 AM
Spark Capital, the leading American venture capital fund (approximately $5 billion AUM) and the innovation fund, MUFG Innovation Partners Co., Ltd. (MUIP), a part of the Mitsubishi UFJ Financial Group are investing $20 million in Liquidity Capital, a subsidiary of Meitav Dash, at a first investment round (Series A) which reflects Liquidity ’s valuation of $100 million (post-money). The investors invested an aggregated amount of $20 million. The investors have been allocated, in the aggregated, with approximately 20% holdings in Liquidity’s share capital (fully diluted).
The Investment funds are primarily designated to accelerate the continued development of the technology developed by Liquidity and to establish and expand Liquidity’s business, including the investment funds managed by it, globally and with particular attention to Asia and the United States.
As part of the transaction, Liquidity has granted Spark with a license to use the technology developed by it and Spark has granted Liquidity the right to participate in future portfolio investments.
This is the second transaction for Liquidity where a leading financial institution invites collaboration, support and practical knowledge in managing investments through Liquidity’s technological capabilities. Two months ago, Liquidity entered into a further transaction with MUFG Bank, Ltd (MUFG Bank). Jointly establishing (50/50) a debt fund management company, MARS Growth Capital Pte. Ltd. based in Singapore utilizing Liquidity’s advanced technologies. MUFG Bank has committed to invest $80 million initially.
Additionally, as part of the transaction, Spark may increase its holdings in Liquidity up to 20%.
Meitav Dash will not be selling any of its holdings, but in light of the shares allocation for the new investors, Meitav Dash will no longer control Liquidity and will hold approximately 44.6% of Liquidity’s share capital (approximately 38.6% on a fully diluted basis). Meitav Dash forecasts that the total accounting profit to be reported shall be in the region of $20 - $25 million.
Nobutake Suzuki, MUIP’s President and CEO: ” Liquidity Capital is one of the most important partners for MUFG. MUFG has already worked with Liquidity Capital through our joint venture, Mars Growth Capital. The newly created JV has been focused on emerging startups which need growth capital in Southeast Asia with the most advanced credit model in the world, and I strongly believe that the partnership should be promising for both parties. Also, the credit model developed by Liquidity Capital should be globally scalable, and the company is giving opportunities to high-growth emerging companies by providing smart capital.”
Ron Daniel, Liquidity’s CEO: “I am honored and proud that two of the world’s leading financial institutions are joining Liquidity as equity investors. This is a further recognition of the exemplary funding method made through the unique trajectory and underwriting technology we have developed. This equity investment will enable us expanding our operations to further markets, particularly in Asia and the United States. With the support of our new partners, Spark and MUIP and with Meitav Dash, which has invested in Liquidity since its foundation, we will be able to continue and lead the financial industry transformation. In addition, Liquidity intends to grant financial players the opportunity to explore using the technology it has developed to manage their investments as a SaaS model, when the license agreement that will enable Spark to manage its investment portfolio via the Liquidity Dynamics platform is the harbinger.”
Ilan Raviv, Meitav Dash’s CEO: “This investment is a significant vote of confidence in Liquidity’ s uniquely developed technology. The alliance with global financial institutions will enable Liquidity to extend its global deployment, as well as continue to accelerate the development of the self-proven technology. Liquidity’s unique underwriting and cash flow trajectory model has a significant advantage over other funding solutions, and I am pleased that specifically these two global giants are joining us to expand the operations.”
Liquidity presents a revolutionary and unique algorithm based technology for revenues and cash flow trajectory that enables large-scale financing transactions through constantly and continuously monitoring, utilizing a unique business model based on purchase of future revenues, allowing strong companies to grow fast. Liquidity Capital’s fund invests in companies with annual revenues of more than $3 million, which show consistently growth of tens of percent and ongoing revenues.