Partners share £12m payout as Accel makes record profit
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.