Meitav Dash unit Liquidity Group US Investments LP raises $20m
Israeli startup credit investor Liquidity Group US Investments LP, a subsidiary of Meitav Dash, has raised $20 million from US venture capital fund Spark Capital and MUFG Innovation Partners Co., Ltd. (MUIP), part of the Mitsubishi UFJ Financial Group at a company valuation of $100 million. The investors have been allocated 20% holdings in Liquidity Group US Investments LP's share capital (fully diluted).
Liquidity Group US Investments LP has developed an algorithm based technology for revenue and cash flow trajectory that enables large-scale financing transactions through constantly and continuously monitoring, utilizing a unique business model based on purchase of future revenues, allowing strong companies to grow fast. Liquidity Group US Investments LP's fund invests in companies with annual revenue of more than $3 million, which show consistently growth of tens of percent and ongoing revenues. Liquidity Group US Investments LP extends credit to startups, rather than taking an equity stake.
The Investment funds will accelerate the continued development of the technology developed by Liquidity Group US Investments LP and to establish and expand Liquidity Group US Investments LP's business, including the investments funds managed by it, focusing on Asia and the US. As part of the transaction, Liquidity Group US Investments LP has granted Spark a license to use the technology developed by it and Spark has granted Liquidity Group US Investments LP the right to participate in future portfolio investments.
This is the second transaction for Liquidity Group US Investments LP where a leading financial institution invites collaboration, support and practical knowledge in managing investments through Liquidity Group US Investments LP's technological capabilities. Two months ago, Liquidity Group US Investments LP entered into a further transaction MUFG Bank). Jointly establishing (50/50) a debt fund management company, MARS Growth Capital based in Singapore utilizing Liquidity Group US Investments LP's advanced technologies. MUFG Bank has committed to invest $80 million initially. As part of the transaction, Spark may increase its holdings in Liquidity Group US Investments LP up to 20%.
Meitav Dash will not be selling any of its holdings, but in light of the shares allocation for the new investors, Meitav Dash will no longer control Liquidity Group US Investments LP and will hold 44.6% of Liquidity Group US Investments LP's share capital (38.6% on a fully diluted basis). Meitav Dash forecasts that the total accounting profit to be reported will be $20 - $25 million.
Liquidity Group US Investments LP CEO Ron Daniel said, "This is a further recognition of the exemplary funding method made through the unique trajectory and underwriting technology we have developed. This equity investment will enable us expanding our operations to further markets, particularly in Asia and the United States. With the support of our new partners, Spark and MUIP and with Meitav Dash, that has invested in Liquidity Group US Investments LP since its foundation, we will be able to continue and lead the financial industry transformation. In addition, Liquidity Group US Investments LP intends to grant financial players the opportunity to explore the using of the technology it has developed to manage their investments as a SaaS model, when the license agreement that will enable Spark to manage its investment portfolio via the Liquidity Group US Investments LP Dynamics platform is the harbinger."
Meitav Dash CEO Ilan Raviv said, "This investment is a significant vote of confidence in Liquidity Group US Investments LP's uniquely developed technology. The alliance with global financial institutions will enable Liquidity Group US Investments LP to extend its global deployment, as well as continue to accelerate the development of the self-proven technology. Liquidity Group US Investments LP's unique underwriting and cash flow trajectory model has a significant advantage over other funding solutions, and I am pleased that specifically these two global giants are joining us to expand the operations."
