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Analysis of venture capital investment in the IT sector. TCV


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Integral service around a transaction
BY : Diego GutiérrezJuly Fri, 2018

From a corporate finance point of view, we analyse the investments made by venture capitalists in the IT sector. In this case, we analyse TCV's recent investments.

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Analysis of the IT sector and private equity

In recent years, the IT sector has become the focus of the majority of investors in Private Equity. According to various sources, technology absorbs a third of the investment of private equity global. In addition, at the end of 2017 the IT sector raised more than $40B being the highest amount to date being more than double the amount invested in 2013. As far as Spain is concerned, private equity is stepping up its operations in the Spanish technology sector. (Chart provided by BDO).

Analysis of venture capital investment in the IT sector. TCV

TCV

TCV is a California-based firm, founded in 1995, that provides capital to growth-stage private and public companies in the technology industry. TCV has invested over $ 10 billion in leading technology companies and has helped guide CEOs through over 100 IPOs and strategic acquisitions. Some of the investments made have been in companies such as Altiris, Dollar Shave Club, ExactTarget, Expedia, Facebook, Fandango, Genesys, HomeAway, Merkle, Netflix and Spotify.

TCV offers decades of real-world experience supporting high-growth technology companies. It helps through recruiting world-class talent to scale the team, introducing high-value customers and partners, sharing industry-leading business best practices, guiding management through acquisitions, preparing for IPOs - and life after, refining go-to-market strategies with data and analytics, identifying, preparing and supporting pivots, effective communication and focus on long-term vision and presenting advanced metrics to measure performance.

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Recent TCV investments

Since its inception in 1995, it has raised nine funds and invested over $ 10 billion in leading technology companies, including. It has recently made a number of investments, and these are:

On 28 June, the company TastyTrade The signing of this transaction is aimed at increasing its trading and investment media platform.

The company TourRadar secured a $50M financing on 26 June in order to expand its team globally and invest in the technology platform to improve the user experience especially in new markets.

In addition, the leading broadband and hybrid WAN solutions company Silver Peak announced the investment of $90M by TCV enabling its expansion plans in the market, as well as cementing its position as a global leader in SD-WAN and Cloud Edge WAN solutions.

On 24 May the company RoverThe largest network of dog sitters and dog walkers, has raised $155M in a funding round, which will be used to expand internationally and increase its market share.

Watermark signed a funding round of unknown amount on 17 April 2018 with the purpose of accelerating the development of smart and innovative educational systems to improve student learning.

Avettathe leading provider of cloud-based risk management solutions announced the signing of a funding round with WCAS and TCV as lead investors. The sum enables Avetta to reach more customers, suppliers and improve supply chain security.

The company Varsity Tutorsa provider of a live learning platform connecting teachers and learners, announced on 14 February 2018 the round received with a total amount of $50M with the aim to expand its operations and develop its platform.

Lastly, on 17 December 2017, the company WorldRemit announced its financing round with a total amount of $40M in order to increase its activity in developing markets such as Africa and Asia.

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Yes you want to look for investors, buying a company or sell your company, contact our experts in Corporate Finance.

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