Exit announcement – DN Capital

News: Investment News | 1 March 2015

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We are delighted to announce the sale of Quandoo GmbH, a portfolio company held by DN Capital’s third fund Global Venture Capital III (‘GVC III’ or ‘the Fund’).

Connection Capital Commitment to GVC III
Investment date: September 2014
Commitment size: undisclosed

Quandoo was sold to Recruit Holdings for €198.6 million with additional working capital giving a total enterprise value of €211.7m. DN held the investment for less than 15 months.

GVC III’s investment in Quandoo: €5.5m over two rounds in December 2013 and July 2014
Exit Date: March 2015
Return to GVC III: 4.3x / 367% IRR

In June 2014, Connection Capital clients invested in GVC III managed by DN Capital LLP, a leading European early stage and growth capital investor with offices in London and Silicon Valley. Connection Capital clients were part of the final close for GVC III which reached €144m, well over its original €100m target. The Quandoo exit has generated a cash multiple of 4.3x and IRR of 367%. As a result, Connection Capital clients will receive their first distribution from the Fund well ahead of initial expectations. Quandoo was founded at the end of 2012. It has developed into the fastest growing restaurant reservation platform in Europe and Asia. DN Capital co-led the Series B investment into Quandoo in December 2013 and participated in a follow on round in July 2014. Its total cost of investment was €5.5 million and the Fund owned 10% of the business. Quandoo has enjoyed outstanding growth since launch with 3000+% revenue growth year-to-date.

“This is a fantastic, early exit by DN Capital. It proves that the team has a successful strategy of identifying strong companies with excellent management teams. It is very unusual for private investors to gain exposure to this type of investment sourced and managed by a top quartile venture fund manager. Through our innovative business model we are able to access alternative funds such as GVC III for our clients.” - Lorraine Homewood, Client Director