Endeca
Country: Vatican City
Region: All USA
Investors: DN Capital
European venture capitalist DN Capital’s investment in US business intelligence software business Endeca – alongside other backers including Bessemer Venture Partners – proves that it is not just domestic companies that can contribute to innovation and economic growth in Europe.
DN backed the business from a very early stage, providing a crucial link to the lucrative European market, bringing in managerial expertise and developing networks that proved invaluable. Ten years after its initial investment, and five institutional rounds of funding later, Endeca topped the $1bn mark in its sale to US giant Oracle.
Felda Hardymon
Partner - Bessemer Venture Partners
DN demonstrated value disproportionate to its size on Endeca, in part due to the focus of its fund and in part due to the calibre of the individuals involved.
10x
return on initial investment
500
staff now at Endeca
What did the business need?
Capital for expansion of sales function
Networks to bring in new European customers and channel partners
Networks to attract high-quality senior management
How did private equity backing create lasting value?
DN contributed to second and third rounds of financing, and led the fourth
Introduced Tesco.com, Company’s first million-dollar customer
Attracted major European channel partners to the Company
Assisted CEO in redesigning sales and pricing strategy
Helped build operations in London, France and Germany
Provided insight into key competitors in Europe
What outcomes did private equity investment achieve?
Endeca has been cashflow positive for past four years
Revenues of $150m in 2011, up from $0.5m at the time of DN’s first investment
Group now employs more than 500 people, with a significant number in Europe
North of 10x return on DN’s first investment in the business
Sale price to Oracle reported at more than $1bn
Sale to Oracle offers immediate synergies and is of huge value to Endeca
Investors
