Leading Venture Capital Fund, Spark Capital and MUIP Investing $20 Million in Liquidity Capital at a $100 Million Valuation
October 23, 2020 3:00 AM
The investment will be utilized to accelerate Liquidity's unique forecastingand underwriting technology development and to both establish and expand itsbusinesses globally, with particular attention to Asia and the United States.Meitav Dash is expected to book a $20-$25 million profit for its earlyinvestmentNew York, New York--(Newsfile Corp. - October 22, 2020) - Spark Capital, theleading American venture capital fund (approximately $5 billion AUM) and theinnovation fund, MUFG Innovation Partners Co., Ltd. (MUIP), a part of theMitsubishi UFJ Financial Group are investing $20 million in Liquidity Capital,a subsidiary of Meitav Dash, at a first investment round (Series A) whichreflects Liquidity's valuation of $100 million (post-money). The investorsinvested an aggregated amount of $20 million. The investors have beenallocated, in the aggregated, with approximately 20% holdings in Liquidity'sshare capital (fully diluted).
The Investment funds are primarily designated to accelerate the continueddevelopment of the technology developed by Liquidity and to establish andexpand 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 usethe technology developed by it and Spark has granted Liquidity the right toparticipate in future portfolio investments.This is the second transaction for Liquidity where a leading financialinstitution invites collaboration, support and practical knowledge in managinginvestments 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 GrowthCapital Pte. Ltd. based in Singapore utilizing Liquidity's advancedtechnologies. MUFG Bank has committed to invest $80 million initially.Additionally, as part of the transaction, Spark may increase its holdings inLiquidity up to 20%.Meitav Dash will not be selling any of its holdings, but in light of theshares allocation for the new investors, Meitav Dash will no longer controlLiquidity and will hold approximately 44.6% of Liquidity's share capital(approximately 38.6% on a fully diluted basis). Meitav Dash forecasts that thetotal accounting profit to be reported shall be in the region of $20 - $25million.
Nobutake Suzuki, MUIP's President and CEO: "Liquidity Capital is one of themost important partners for MUFG. MUFG has already worked with LiquidityCapital through our joint venture, Mars Growth Capital. The newly created JVhas been focused on emerging startups which need growth capital in SoutheastAsia with the most advanced credit model in the world, and I strongly believethat the partnership should be promising for both parties. Also, the creditmodel developed by Liquidity Capital should be globally scalable, and thecompany is giving opportunities to high-growth emerging companies by providingsmart capital."Ron Daniel, Liquidity's CEO: "I am honored and proud that two of the world'sleading financial institutions are joining Liquidity as equity investors. Thisis a further recognition of the exemplary funding method made through theunique trajectory and underwriting technology we have developed. This equityinvestment will enable us expanding our operations to further markets,particularly in Asia and the United States. With the support of our newpartners, Spark and MUIP and with Meitav Dash, which has invested in Liquiditysince its foundation, we will be able to continue and lead the financialindustry transformation. In addition, Liquidity intends to grant financialplayers the opportunity to explore using the technology it has developed tomanage their investments as a SaaS model, when the license agreement that willenable Spark to manage its investment portfolio via the Liquidity Dynamicsplatform is the harbinger."Ilan Raviv, Meitav Dash's CEO: "This investment is a significant vote ofconfidence in Liquidity's uniquely developed technology. The alliance withglobal financial institutions will enable Liquidity to extend its globaldeployment, as well as continue to accelerate the development of theself-proven technology. Liquidity's unique underwriting and cash flowtrajectory model has a significant advantage over other funding solutions, andI am pleased that specifically these two global giants are joining us toexpand the operations."Liquidity presents a revolutionary and unique algorithm based technology forrevenues and cash flow trajectory that enables large-scale financingtransactions through constantly and continuously monitoring, utilizing aunique business model based on purchase of future revenues, allowing strongcompanies to grow fast. Liquidity Capital's fund invests in companies withannual revenues of more than $3 million, which show consistently growth oftens of percent and ongoing revenues.