B2B software investor EVP has called a first close of its fourth fund, with commitments approaching $60m. The first close comes three months after the venture capital firm launched its fourth fund, targeting a total of $100m. The new fund takes the firm’s total funds under management to over $250m.
The EVP investor base comprises private investors and family offices from across Australia. According to EVP Partner Howard Leibman, support for the fund has been strong, despite challenging market conditions.
“The majority of the funds committed have come from existing EVP investors, many of whom have been with us since we launched our first fund. Our investors like the consistency in our strategy and our very clear focus on B2B software."
"We invest in early stage B2B software companies delivering mission critical products for their customers. These businesses have proven to be particularly resilient, and they continue to deliver healthy, predictable growth, even in the face of a potentially more challenging economic environment."
"Over the years we’ve invested in and supported over 40 such businesses. Many of these have grown to become global companies of material scale, such as SiteMinder, Deputy and Ignition.”
In early June, EVP shared a Special Report with existing investors, outlining how their disciplined investing approach has helped to ensure stability across the portfolio amidst the current downturn. The Report detailed that while companies across the ecosystem saw valuations in excess of 30x ARR through 2021, the median entry price across EVP Fund III, deployed over this same period, implied an 8.4x multiple of ARR. The report notes that this figure is now in line with the public market benchmarks for high growth software companies, after the pullback of more than 50% in the first half of 2022.
“As with many venture funds we have been closely monitoring valuations in light of the reset in public software pricing and in the context of the changing macro environment. The current valuations across each of our funds imply an ARR multiple in the range 5.0x to 5.8x. We’re comfortable that these valuations are appropriate, and we see no need to mark down any of our holdings.”
In addition to completing its first close, EVP has also announced the formation of its new Venture Partner program, welcoming the likes of Adrian Di Marco, Founder of TechnologyOne, and Mike Ford, Founder of SiteMinder.
Other members of the Venture Partner program include NZ based Russ Bennett, Chloe Lim, Damon Pezaro, Tiziana Bianco and Joe McShanag.
EVP Operating Principal Kiya Taylor shared that the launch of this program comes at a critical time in the growth of the EVP business, with the firm’s investor base exceeding 500 investors, and with the portfolio likely to exceed 50 companies in the coming 12 months.
“We’re really proud and excited to have such experienced individuals join us as Venture Partners. Each of them will support in different ways, some on the investor side of the business, and others providing strategic and tactical support to our Founders as they scale their operations.”
“ANZ startups have long relied on global talent pools to access first hand experience related to scaling technology businesses. With the growth of our local ecosystem, we now have direct access to local experts, with deep experience across all disciplines of building a startup. At EVP we aim to foster these connections and to showcase the capabilities of successful local operators for the benefit of our own portfolio, and also for the broader ecosystem.”
With first close finalised, EVP will now begin investing out of Fund IV. The Fund remains open to new investors, with a final close anticipated by November of this year.
Read AFR coverage here.
B2B software investor EVP has called a first close of its fourth fund, with commitments approaching $60m. The first close comes three months after the venture capital firm launched its fourth fund, targeting a total of $100m. The new fund takes the firm’s total funds under management to over $250m.
The EVP investor base comprises private investors and family offices from across Australia. According to EVP Partner Howard Leibman, support for the fund has been strong, despite challenging market conditions.
“The majority of the funds committed have come from existing EVP investors, many of whom have been with us since we launched our first fund. Our investors like the consistency in our strategy and our very clear focus on B2B software."
"We invest in early stage B2B software companies delivering mission critical products for their customers. These businesses have proven to be particularly resilient, and they continue to deliver healthy, predictable growth, even in the face of a potentially more challenging economic environment."
"Over the years we’ve invested in and supported over 40 such businesses. Many of these have grown to become global companies of material scale, such as SiteMinder, Deputy and Ignition.”
In early June, EVP shared a Special Report with existing investors, outlining how their disciplined investing approach has helped to ensure stability across the portfolio amidst the current downturn. The Report detailed that while companies across the ecosystem saw valuations in excess of 30x ARR through 2021, the median entry price across EVP Fund III, deployed over this same period, implied an 8.4x multiple of ARR. The report notes that this figure is now in line with the public market benchmarks for high growth software companies, after the pullback of more than 50% in the first half of 2022.
“As with many venture funds we have been closely monitoring valuations in light of the reset in public software pricing and in the context of the changing macro environment. The current valuations across each of our funds imply an ARR multiple in the range 5.0x to 5.8x. We’re comfortable that these valuations are appropriate, and we see no need to mark down any of our holdings.”
In addition to completing its first close, EVP has also announced the formation of its new Venture Partner program, welcoming the likes of Adrian Di Marco, Founder of TechnologyOne, and Mike Ford, Founder of SiteMinder.
Other members of the Venture Partner program include NZ based Russ Bennett, Chloe Lim, Damon Pezaro, Tiziana Bianco and Joe McShanag.
EVP Operating Principal Kiya Taylor shared that the launch of this program comes at a critical time in the growth of the EVP business, with the firm’s investor base exceeding 500 investors, and with the portfolio likely to exceed 50 companies in the coming 12 months.
“We’re really proud and excited to have such experienced individuals join us as Venture Partners. Each of them will support in different ways, some on the investor side of the business, and others providing strategic and tactical support to our Founders as they scale their operations.”
“ANZ startups have long relied on global talent pools to access first hand experience related to scaling technology businesses. With the growth of our local ecosystem, we now have direct access to local experts, with deep experience across all disciplines of building a startup. At EVP we aim to foster these connections and to showcase the capabilities of successful local operators for the benefit of our own portfolio, and also for the broader ecosystem.”
With first close finalised, EVP will now begin investing out of Fund IV. The Fund remains open to new investors, with a final close anticipated by November of this year.
Read AFR coverage here.