Mangrove Capital Partners has seen the value of its stake in Wix rise as the cloud-based web development platform set an IPO price of $16.50. Mangrove invested in the business seven years ago.
Mangrove Capital Partners, the leading early-stage venture capital firm in Europe, today saw the value of its stake in Wix rise as the cloud-based web development platform set an IPO price of $16.50. The IPO is the culmination of Mangrove’s seven-year relationship with Wix, over which time it took part in several rounds of fund-raising and became the lead investor in the business with a material stake.
“WIX is hugely significant. It demonstrates that you don’t need to be in Silicon Valley to build a great company and validates once again the ‘high risk/high return’ nature of European Venture Capital,”
comments Mark Tluszcz, CEO at Mangrove Capital Partners. “It also shows that venture capital firms such as ours can deliver great returns to investors – reinforcing their appetite to further invest in the growth businesses of the future that will carry Europe forward.”
Founded in 2006 on the premise that the Internet should be accessible to everyone to develop, create and contribute, Wix now has over 38 million users and has enjoyed 14 consecutive quarters of growth in revenue and collections. Wix will be joining 62 other Israeli companies listed on the Nasdaq and will be the largest U.S. IPO by an Israeli company since SodaStream International’s debut in 2010.
“We’re seeing a huge amount of innovation and a truly global outlook from entrepreneurs in Israel. Indeed, it looks like there may be many more IPOs of Israeli tech companies by the end of next year,”
continues Mark Tluszcz.
Founded in 2000 and with $500 million under management, Mangrove Capital Partners is one of Europe’s leading early-stage investors.
“Our sweet spot is the earliest stages of innovation. Rather than following the herd, we like to take big risks at an early stage, in unusual, unproven or unfavoured technology that can disrupt industries,” continues Mark Tluszcz. “Our pipeline includes some very promising companies – WiX, Kupi VIP, OpenX, FreedomPoP and Nimbuzz!
all have the potential to become billion dollar businesses.”
Mangrove Capital Partners focuses on Europe and emerging markets. It
has recently made a number of investments in urban mobility – congestion costs nearly €100bn a year in the EU alone. Its portfolio includes Induct, which develops electric autonomous
(driverless) vehicles and intelligent urban mobility solutions, as well as the manufacturer if the infamous London Black cabs Metrocab.
It also includes CiteeCar, which is breaking new ground with the freemium business model – something that Mangrove has a particular expertise in – by giving away cars.
“Our entrepreneur-centric approach to venture capital affords us the ability to forge trusted relationships with our portfolio companies and build material stakes in the winners,” continues Mark Tluszcz.
“We’re happy we’ve helped achieve a great result for Wix as well as for our investors.”
As well as playing pivotal roles in some of the technology industry’s greatest success stories, including Skype, the Mangrove team has been involved in an array of other massive successes – including FC Barcelona and Lotus Formula One.
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About Mangrove Capital Partners
Mangrove Capital Partners (www.mangrove.vc) is a leading early stage venture capital firm. Its team chases bold, transformational ideas around the world, with a combined focus on Europe, Israel and Russia.
Mangrove works with the region’s top entrepreneurial talent at the earliest stages of innovation, with the aim of being the first institutional investor: the firm has co-created projects and regularly injects funds prior to product launch, often in unproven, unusual or unfavoured technologies. Its team brings rich and diverse experience in industry as well as technology, and its entrepreneur-centric approach ensures founders have the support, encouragement and experience they need to build disruptive, global companies.
With $500 million under management, Mangrove has the capacity to support its portfolio through multiple rounds of financing and is the largest shareholder in many of its best performing companies. Founded in 2000, Mangrove has invested in more than 70 companies and was the first investor in Skype, which was acquired by eBay for over €3.1 billion in 2005. Mangrove has consistently featured among the top performing venture capital funds in the industry and has fuelled the creation of significant long-term value.