What is Ogier’s Role in the Fund Raise?

Are you looking to raise investment capital for your business? You’re going to need a savvy and experienced partner.

Index Ventures just tapped Ogier, one of the world’s leading law firms, to help with its recent multi-billion dollar fundraising venture. Gain insight into this iconic deal and uncover the global legal expertise that made it all possible.

Introduction

Index Ventures, a leading venture capital and growth equity firm, has announced the successful closing of its twelfth fund, Index Ventures XII LP. The Fund has secured US$3.1 billion in commitments from new and existing investors.

Ogier advised Index Ventures on the closing of the Fund, which was oversubscribed and attracted strong demand from a global investor base comprising world-leading endowments, foundations, pension funds, family offices, and strategic corporate LPs. The Fund will invest across all stages – early-stage to growth equity – with a technology focus on software and internet services companies in Europe and the US. This is the biggest fund ever raised by Index Ventures.

Overview of Index Ventures

Index Ventures is a leading global venture capital firm that focuses on investing in innovative, early- and growth-stage technology companies. Founded in 1996, the firm has invested in more than 600 companies across the US, Europe and Israel, including Delivery Hero, Supercell, Dropbox, Spotify, King and Lovefilm. Index Ventures operates from offices in London, San Francisco and Geneva.

Led by Managing Partners Neil Rimer; Danny Rimer; Mike Volpi; Dominique Vidal; Martin Mignot and Mike Hudack, Index Ventures has built an experienced investment team with strong operating capabilities to help their portfolio companies maximize their potential. The team also has access to an extensive network of venture capitalists and entrepreneurs which can significantly enhance the value add of their portfolio investments.

At Ogier we are pleased to have advised Index Ventures on its US$3.1 billion fund raise across three funds dedicated to early-stage ranging from US$750million for its new Delta Fund, US$650million for later stage expansion rounds through a growth capital fund as well as €800 million to be invested into European startups.

Ogier advises Index Ventures on its US$3.1 billion fund raise

Ogier is delighted to have advised Index Ventures to set up its US$3.1 billion fund, the combined ‘Traditional & Next Generation Funds VII’, and to have worked closely with the Index partners on this important milestone.

The combined Fund will enable Index Ventures to continue its global focus, investing in technology companies across Europe, North America and Israel and will provide exceptional entrepreneurs with access to growth capital across a range of sectors including software, SaaS, data intelligence, fintech and sustainability at all stages of development.

Ogier’s experienced funds team provided the full suite of fund formation services adhering strictly to Index’s deadlines to close this financing in May 2021. Partner Stephen Gillespie led the Ogier team alongside senior associate Colin Finlayson in Cayman (structuring and auditing) who worked closely with corporate Cayman associate Rachel McLean on U.K./Cayman aspects. Senior counsel Mark Hemsted drafted bespoke articles of association for the underlying vehicles which was complemented by fund formation advice from Jersey partner Laura Jones alongside Jersey associates Romain Heitzmann-Rouxenreux and Charles Carrière. The group coordinated with Ogier teams in Belgium (Geneviève Sayag) , France (Julien Mondis) and Luxembourg (Pierre Wurth).

Ogier is delighted that it has once again been chosen to demonstrate its unique mix of capabilities required for complex private fund formations completing this mandate on time allowing Index Ventures to continue its growth trajectory in Europe while cementing their position as one of the strongest venture investors apart from enhancing our offering for existing providers venturing into such asset classes as technology investments.

Breakdown of the US$3.1 Billion Fundraise

Index Ventures recently announced the successful completion of its US$3.1 Billion fund raise, the largest such raise in Europe to date. Ogier provided legal advice to Index Ventures on this significant fund raise, including commitments from limited partners and a capital call reserve facility from credit manager Investec Bank plc.

This multi-billion dollar fund is intended to support investments in fast-growing technology companies across Europe and the US. TechCrunch reports that independent tech firms will be bolstered by around $18 billion through Index’s new funds.

Breaking down the coffers further, below is a summary of how the total US$3.1 Billion was raised:

– US$2 billion for its new venture vehicle; – US$700 million for its growth equity vehicle; and – US$400 million for a co-investment programme and follow-on investments into prior portfolio companies.

Benefits of the Fundraise

The fundraising by Index Ventures is expected to bring several benefits to the company and its investors. According to reports, the new fund will be used for investments in technology companies in Europe and the US, focusing on software infrastructure, industry-specific software, data & analytics, internet services, enterprise software, digital media and fintech.

Index Ventures has long been one of Europe’s leading technology venture capital firms. This new fundraising round will enable Index Ventures to continue its mission of backing some of the world’s most innovative companies and driving industry transformation. In addition, it allows Index Ventures to finance larger investments than before, making it possible for them to step up their venture investing activities across Europe and further support future founders-led businesses that can drive positive change. The new fund also allows Index Ventures to invest in later stage opportunities while continuing to seek out early stage investments worldwide.

By partnering with Ogier’s Investment Funds team on this fundraising round, Index Ventures has ensured that their interests are protected throughout this process by highly experienced practitioners who understand the details and complexities of investment funds law across multiple jurisdictions including Jersey, Luxembourg, London and Cayman Islands. This will allow them to carry out their mission without worrying about legalities or regulatory obligations.

Impact on the Investment Ecosystem

Index Ventures’ record-breaking US$3.1 billion fund raise was the largest in Europe this year and had significant implications for the investment ecosystem. With this new influx of capital, Index Ventures and other venture capital (VC) firms will likely increase their investments in technology startups and expand into new markets. The capital raised will result in increased competition for deals as more VCs bid for each investment opportunity, which may lead to various benefits and risks for investors and startup founders.

Existing investors can potentially achieve higher returns if their portfolio companies can grow faster due to the additional funding. Ogier’s advice on this fund raise enabled Index Ventures to secure improved subscription terms such as reduced carry rates, allowing the company more leeway in its investments than if it had raised funds at typical rates.

On the other hand, increased availability of VC funds might cause increased competition among startups seeking investment opportunities. With more funds available, investors can be more selective about which companies they back, driving up standards across the board or leading to bidding wars between startups eager for funding. Fundraising processes could also become lengthened with multiple VCs vying over one deal.

Overall, Ogier’s legal assistance enabled Index Ventures’ smooth completion of this ambitious fundraising project, enabling them to expand into new markets and invest even more heavily in technology start-ups across Europe and North America – significantly transforming their impact on the global investment system.

Closing Thoughts

The successful close of Index Ventures’ latest fund raise is great news for the firm and its portfolio companies, who will benefit from the additional capital to grow their businesses. Ogier was pleased to work alongside Index Ventures to coordinate such a large and complex fundraise. We find that our with our innovative approach and client-focused methodology, we can deliver the most effective legal guidance when it comes to these sorts of venture capital fundraising transactions.

Going forward, Ogier will stay at the forefront of venture capital, equity investments and fundraising to best serve our clients in any deals they take part in, both domestically and internationally. In addition, with a global perspective and approach, we are well placed as a law firm to give cutting edge advice as market conditions shift rapidly over time.

Conclusion

Ogier’s Corporate & Funds team acted for Index Ventures in fundraising. The process was led by Index Partners François-Xavier Robert, Dom Lynn and Jan Vivian, with assistance from Ogier’s team comprising partners Chris Clive and Christian Boesl and assisted by associate Keirdan LeTissier.

The transaction is described as a win-win for both parties. For Index Ventures, it allows them to invest more money into promising technology companies and expand their portfolio. At the same time, for Ogier it marks another successful instance in which the law firm has delivered first-class legal advice to their client base.

Overall, the concluding of this fundraising was a credit to both parties involved demonstrating Ogier’s capability to provide expert legal advice while helping Index Ventures grow and succeed in their venture capital investments.