Blue Prism success underlines value of patience, says CEO of investor Mercia
The creation of a new UK ‘unicorn’ in the shape of software company Blue Prism highlights the value of patience on the part of investors, according to the chief executive of the company’s first backer, Mercia Fund Managers.
As Newton-le-Willows, Merseyside-headquartered Blue Prism’s market value has risen above $1bn, Mercia’s CEO Dr Mark Payton said it showed that tech firms needed access to patient capital to support them at every stage of their development if the UK was to achieve more unicorn companies.
Warwickshire-based Mercia first invested in Blue Prism in 2004 through its RisingStars Growth Fund and continued to support the company right up until March, 2016, when it floated on AIM with an initial market cap of £49m.
Mercia has realised 75x the fund’s investment cost based on an original investment of £0.9m and continues to hold circa 2.5% stake in the business.
Speaking at Mercia’s annual Gala Dinner in Birmingham, Dr Payton said: “Mercia was the first investor in Blue Prism and we supported the company throughout.
“It was 12 years before it floated on AIM and a further two years before we started unwinding our position. During that period we had good times and bad times, but our persistence has paid off. Patience is at the heart of everything we do at Mercia.
“Currently the US dominates the world in terms of the number of unicorn companies it creates.
“US companies achieve much bigger valuations on flotation, because US funders invest more heavily and look to the long term rather than selling out to a trade buyer at an early stage.
“The Patient Capital Review has been a real fillip to our industry, but we need to change our approach and recognise the true value of taking a more long-term, strategic approach to supporting technology firms.”
Blue Prism is a specialist in robotic process automation, which enables its blue-chip clients to create a digital workforce powered by its software robots that are trained to automate routine back-office clerical tasks. The company is led by chief executive Alastair Bathgate.
