Paris-based Ventech exits Believe investment with a 36x return, generating €175M from 12% stake

Paris-based Ventech, an early-stage investor in Believe and a member of its board during the investment period, announced on Tuesday that it has exited the investment with a multiple of 36x for its fund III. 

This has resulted in a total return of €175M for the 12 per cent stake held by its funds.

A consortium consisting of Denis Ladegaillerie, the Founder and CEO of Believe, along with EQT and TCV, have purchased a 71.92 per cent block of Believe’s capital, which includes a 12 per cent share from Ventech. 

They will now launch a Public Tender Offer to acquire the remaining shares of Believe at €15 per share, without making it mandatory to withdraw.

Ventech, as a board member and shareholder, worked closely with Denis Ladegaillerie, TCV, and XAnge funds to develop the best liquidity solution for its investors. 

As a result, Ventech achieved complete liquidity at a fully diluted valuation of €1.52B. It resulted in €175M for the 12 per cent stake held by Ventech’s funds. 

Ventech Capital III, the fund behind the initial deal, achieved multiples of 36x.

“We are proud to have supported Denis Ladegaillerie, the visionary founder of Believe, from the old days when Believe had €2M in revenue to today nearly a billion. At a time when the music industry had just gone through 15 years of crisis, we were convinced by Denis’ vision of reconstructing the music industry thanks to the digital revolution, with Believe offering a disruptive distribution and development model for artists and labels in this new paradigm,” explains Alain Caffi, Founding Partner and now Senior Advisor at Ventech. 

“We have faithfully accompanied Believe from its very early stage to exit as a responsible shareholder and active board member, which perfectly illustrates our investment and governance strategy ‘from 0 to exit’,” he adds. 

Believe: Supporting independent artists and labels

Founded by Denis Ladegaillerie, Believe is a digital music company headquartered in Paris. 

Their mission is to support independent artists and labels in the digital age by providing them with the tools they need to succeed. 

With over 1,919 employees in more than 50 countries, Believe partners with music entrepreneurs and artists and offers them solutions with expertise, fairness, respect, and transparency. 

Believe’s portfolio of brands includes TuneCore, Nuclear Blast, Naïve, Groove Attack, AllPoints, Ishtar, and Byond.

Ventech: Early-stage venture capital firm

Ventech is a global early-stage venture capital firm that backs the most innovative and visionary tech entrepreneurs with global ambition. 

With its dual structure platform, Ventech has dedicated funds for Europe (Paris, Munich, Berlin, Helsinki, and Stockholm) and Asia (Shanghai and Hong Kong).

Since its inception, Ventech has raised over €900M and has realised over 220 investments, (including Vestiaire Collective, Prewave, Ogury, The Customization Group, Veo, Reveal, and Speexx) and over 90 exits (Believe (BLV.PA), Arteris, Withings (acquired by Nokia), and Fintecsystems (acquired by Tink).

Jean Bourcereau, Managing Partner of Ventech, explains, “We are grateful to our investors who understood what’s at stake and supported our strategy, particularly the raising of a dedicated fund to prepare this exit, Ventech Opportunity I, which was one of the first GP-Led approaches in Europe which allowed Ventech to remain involved in  Believe’s governance until the exit.”

Alain Caffi concludes, “We are pleased to see that Believe is now in the capable hands of TCV, one of our longstanding partners, and EQT, with whom we share the values cherished by Believe: Respect, Expertise, Fairness, and Transparency. Denis Ladegaillerie and his passionate teams are now ready to embark on an even more ambitious new chapter of growth and continue to rock the world of music.”