Part­ners share £12m pay­out as Ac­cel makes record profit

The Daily Telegraph - Business - - Technology Intelligen­ce - By Matthew Field

LON­DON part­ners at ven­ture cap­i­tal firm Ac­cel, which has backed start-ups in­clud­ing Monzo and De­liv­eroo, have en­joyed a bumper £12m pay­out as the fund re­ported record prof­its.

The ven­ture fund, the UK branch of the Sil­i­con Val­ley firm best known for its $9bn (£6.8bn) re­turn on its in­vest­ment in Face­book in 2005, re­ported UK rev­enues of £34m in the year end­ing in De­cem­ber, up from £27m the pre­vi­ous year. Its other bets have in­cluded mu­sic ser­vice Spo­tify and work­place app Slack.

In the UK, it made a profit of £14.5m. About £12.2m was paid out to its seven part­ners, with the top paid part­ner reap­ing £4.3m, ac­cord­ing to its Com­pa­nies House ac­counts.

Founded in 1983, Ac­cel set up shop in Lon­don in the early 2000s and is one of the most es­tab­lished US ven­ture cap­i­tal firms, with an of­fice in May­fair.

Ven­ture cap­i­tal firms make much of their in­come from the fees they charge on their funds, which are raised from wealthy in­vestors and pen­sion funds to back high-risk start-ups.

Last year, Ac­cel closed another bumper fund, rais­ing £440m to in­vest in Euro­pean start-ups. Its most re­cent

Euro­pean deals in­clude an in­vest­ment in $7bn ar­ti­fi­cial in­tel­li­gence start-up UiPath, which the firm first in­vested in three years ago in a $30m round. The start-up has now raised more than $1.2bn.

Ac­cel lost one of its star Lon­don part­ners, Lu­ciana Lixan­dru, to Sil­i­con Val­ley ri­val Se­quoia ear­lier this year. Se­quoia is another of the pre-em­i­nent ven­ture firms of Sand Hill Road, a thor­ough­fare in Sil­i­con Val­ley known for the plush of­fices of tech­nol­ogy in­vestors. Its most no­table in­vest­ments have in­cluded Ap­ple, Google and Airbnb. It is in the process of rais­ing a new fund, thought to be worth more than $7bn.

Ms Lixan­dru quit Ac­cel to join Se­quoia as its first Lon­don hire as it seeks to make more in­roads in the UK mar­ket. She is still un­der­stood to be on gar­den­ing leave.

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