We are very excited to announce that portfolio company PassFort has been acquired by US financial giant Moodys and will now become part of Moodys Analytics. Proceeds to the fund represent a 0.4 DPI and an approximately 11.5 multiple / 65% IRR on our investment of £1.5m
You can read a full announcement here
This is an outstanding result for the company and its founders as well as for the fund. We first invested in PassFort at the end of 2015 after meeting them through Entrepreneur First. The founders had great energy and ambition and most importantly had insight into the increasing importance that the evolving regulatory environment would bring to online commerce through processes like KYC and AML. As a VC, if you can invest in smart ambitious people who have found an important problem lacking good solutions you’re halfway there. And so it has proved – although the business was in great shape, and we had just in fact raised a round of capital earlier this year, Moody’s came in and put an offer on the table the Founders and Board couldn’t turn down, a testament to the quality of the product and the importance of the problem.
Paul was our Director and Donald had kind things to say about him and Episode 1: “Safe to say you learn a lot about people over the years and you are a stand out person in our journey. A credit to yourself and the venture capital profession! You and the Episode 1 Ventures team deserve your success.”
We couldn’t be more proud of what Donald and Henry have built, it’s been a tremendous journey together – and we look forward to hearing about what they are going to do next!