Chrysalis have announced an investment of $67 million in the US based, cybersecurity company Deep Instinct Limited. This investment represents a second close to Deep Instinct’s recently announced Series D funding round of $100 million which was led by Blackrock, with participation from Untitled Investments, The Tudor Group, Millennium, Unbound and Coatue Management.
The investment consists of both an issuance of new equity from Deep Instinct and an acquisition of shares from existing shareholders. The additional investment of new equity means that Deep Instinct has raised approximately $240m to date and will enable it to significantly expand its go-to-market capabilities, while at the same time increasing its best-in-class deep learning research and product development groups.
Richard Watts co-portfolio manager said, “We have spent considerable time analysing the cybersecurity landscape and believe that Deep Instinct has developed best-in-class technologies. Deep Instinct’s cybersecurity platform utilises end-to-end deep learning to specialise in threat prevention, making it the most efficient and effective cybersecurity framework in the market. This technology, focused on prediction and prevention, is likely to be hugely disruptive, given its advantages over more prevalent Endpoint Detection and Response (EDR) solutions.
“With cyberattacks continuing to be a significant risk for enterprises, including the recent spate of ransomware, we believe Deep Instinct’s technology could prove to be game changing in the industry. We are delighted to be making this investment and look forward to working with Guy Caspi (CEO) and the management team as they execute their aggressive growth plans for 2021 and beyond.”
Portfolio statement, including cash position
Following significant portfolio activity over recent weeks, the Investment Advisor would like to update investors as to the structure of the investment portfolio. As of 6 July 2021, the portfolio composition was as follows:
| Portfolio Company | % of investment portfolio |
| Klarna | 27% |
| Starling Bank | 11% |
| wefox | 8% |
| THG | 8% |
| Wise | 8% |
| Smart Pensions | 6% |
| Embark | 5% |
| Graphcore | 5% |
| Deep Instinct | 4% |
| You & Mr Jones | 4% |
| Featurespace | 3% |
| Secret Escapes | 2% |
| Sorted | 1% |
| Growth Street | 0% |
| Cash | 8% |
Source: Jupiter Asset Management. Holdings sizes as of 6th July, are calculated using 31 March 2021 valuations, adjusted for FX as of 5 July 2021 and capturing transactions concluded post the NAV calculation period (at cost), and thus the cash as of 5 July 2021. The holding value of THG is based on the closing share price of 623.5p, as at the March period end. The holding value of Klarna reflects the recently announced funding round which values the business at a valuation of $46 billion. Due to rounding, the figures may not add up to 100%.
Nick Williamson co-portfolio manager said, “Chrysalis has now completed two new transactions since its own recent fund raise, as well as two substantial follow-ons in wefox and Starling Bank, thus demonstrating the team’s ability to access strong deal flow and deploy capital in a timely manner.
Our investment pipeline remains strong, and we continue to source a wide variety of interesting investment opportunities across a range of geographies and themes.
The liquidity position of the Company remains robust. We note the Intention to Float issued by Wise. We believe it is extremely exciting for the UK market that Wise has chosen to list here; a successful listing would further bolster the Company’s liquidity by adding another listed asset to the portfolio.”
Leave a Comment