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Leading Venture Capital Fund, Spark Capital and MUIP Investing $20 Million in Liquidity Group US Investments LP at a $100 Million Valuation

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PUBLISHED
October 23, 2020
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The investment will be utilized to accelerate Liquidity Group US Investments LP's unique forecastingand underwriting technology development and to both establish and expand itsbusinesses globally, with particular attention to Asia and the United States.Meitav Dash is expected to book a $20-$25 million profit for its earlyinvestmentNew York, New York--(Newsfile Corp. - October 22, 2020) - Spark Capital, theleading American venture capital fund (approximately $5 billion AUM) and theinnovation fund, MUFG Innovation Partners Co., Ltd. (MUIP), a part of theMitsubishi UFJ Financial Group are investing $20 million in Liquidity Group US Investments LP,a subsidiary of Meitav Dash, at a first investment round (Series A) whichreflects Liquidity Group US Investments LP's valuation of $100 million (post-money). The investorsinvested an aggregated amount of $20 million. The investors have beenallocated, in the aggregated, with approximately 20% holdings in Liquidity Group US Investments LP's share capital (fully diluted).

The Investment funds are primarily designated to accelerate the continueddevelopment of the technology developed by Liquidity Group US Investments LP and to establish andexpand Liquidity Group US Investments LP's business, including the investment funds managed by it,globally and with particular attention to Asia and the United States.As part of the transaction, Liquidity Group US Investments LP has granted Spark with a license to usethe technology developed by it and Spark has granted Liquidity Group US Investments LP the right toparticipate in future portfolio investments.This is the second transaction for Liquidity Group US Investments LP where a leading financialinstitution invites collaboration, support and practical knowledge in managinginvestments through Liquidity Group US Investments LP's technological capabilities. Two months ago,Liquidity Group US Investments LP entered into a further transaction with MUFG Bank, Ltd (MUFG Bank).Jointly establishing (50/50) a debt fund management company, MARS GrowthCapital Pte. Ltd. based in Singapore utilizing Liquidity Group US Investments LP's advancedtechnologies. MUFG Bank has committed to invest $80 million initially.Additionally, as part of the transaction, Spark may increase its holdings inLiquidity up to 20%.Meitav Dash will not be selling any of its holdings, but in light of theshares allocation for the new investors, Meitav Dash will no longer controlLiquidity and will hold approximately 44.6% of Liquidity Group US Investments LP's share capital(approximately 38.6% on a fully diluted basis). Meitav Dash forecasts that thetotal accounting profit to be reported shall be in the region of $20 - $25million.

Nobutake Suzuki, MUIP's President and CEO: "Liquidity Group US Investments LP is one of themost important partners for MUFG. MUFG has already worked with LiquidityCapital through our joint venture, Mars Growth Capital. The newly created JVhas been focused on emerging startups which need growth capital in SoutheastAsia with the most advanced credit model in the world, and I strongly believethat the partnership should be promising for both parties. Also, the creditmodel developed by Liquidity Group US Investments LP should be globally scalable, and thecompany is giving opportunities to high-growth emerging companies by providingsmart capital."Ron Daniel, Liquidity Group US Investments LP's CEO:  "I am honored and proud that two of the world'sleading financial institutions are joining Liquidity Group US Investments LP as equity investors. Thisis a further recognition of the exemplary funding method made through theunique trajectory and underwriting technology we have developed. This equityinvestment will enable us expanding our operations to further markets,particularly in Asia and the United States. With the support of our newpartners, Spark and MUIP and with Meitav Dash, which has invested in Liquiditysince its foundation, we will be able to continue and lead the financialindustry transformation. In addition, Liquidity Group US Investments LP intends to grant financialplayers the opportunity to explore using the technology it has developed tomanage their investments as a SaaS model, when the license agreement that willenable Spark to manage its investment portfolio via the Liquidity Group US Investments LP Dynamicsplatform is the harbinger."Ilan Raviv, Meitav Dash's CEO: "This investment is a significant vote ofconfidence in Liquidity Group US Investments LP's uniquely developed technology. The alliance withglobal financial institutions will enable Liquidity Group US Investments LP to extend its globaldeployment, as well as continue to accelerate the development of theself-proven technology. Liquidity Group US Investments LP's unique underwriting and cash flowtrajectory model has a significant advantage over other funding solutions, andI am pleased that specifically these two global giants are joining us toexpand the operations."Liquidity Group US Investments LP presents a revolutionary and unique algorithm based technology forrevenues and cash flow trajectory that enables large-scale financingtransactions through constantly and continuously monitoring, utilizing aunique business model based on purchase of future revenues, allowing strongcompanies to grow fast. Liquidity Group US Investments LP's fund invests in companies withannual revenues of more than $3 million, which show consistently growth oftens of percent and ongoing revenues.