E-Capital sells Rips Technologies to trade

The deal came about following commercial talks regarding potential cooperation between the two companies.

The exit follows E-Capital's investment in Rips in a seed round in 2017, followed by a series-A round in October 2018. The GP owned a 16% stake in the business and was the sole venture capital investor in the company, with the remainder owned by Rips Technologies' founders.

E-Capital has made an IRR of 63% on the sale, according to a statement.

E-Capital invested in the company via its fourth fund, which held a final close in December 2017 on €100m. A tenth of the fund was to be dedicated to cybersecurity companies, according to Unquote Data, and the GP has an additional €30m vehicle that is solely focused on cybersecurity.

Insight Venture Partners invested $45m in Switzerland-backed code quality management company SonarSource for a minority stake in November 2016.

Company
Rips Technologies produces software for web application security and code analysis. Based in Bochum, the company was founded in 2016 as a spinout from Bochum University and has 25 employees, according to LinkedIn.

People
Rips Technologies – Johannes Dahse (CEO).
SonarSource – Olivier Gaudin (CEO).
E-Capital Partners – Hannes Schill (partner).

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