Accel, Octopus, Index exit SwiftKey in $250m Microsoft deal

Mikkel Stern-Peltz
03 February 2016

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SwiftKey, a developer of mobile device typing software backed by Octopus Ventures, Accel Partners and Index Ventures, has been acquired by Microsoft.

Though the deal value was not disclosed, the Financial Times reported on a price tag in the region of $250m, citing sources familiar with the deal.

SwiftKey, formerly known as TouchType, raised around $20m in total from its three venture capital investors Accel, Index and Octopus between 2010 and the exit.

Founders Jon Reynolds and Ben Medlock will reportedly receive a combined $60m from the exit, having retained a substantial minority stake in SwiftKey.

Previous funding
Octopus Ventures was the first VC backer of SwiftKey, investing £275,000 of seed funding in October 2010.

Along with Cambridge Capital and a group of business angels, Octopus led SwiftKey's $2.4m series-A in December 2011. The VC also participated in the Index-led series-B in September 2013, which saw the company raise $17.5m and bring Accel Partners on board as an investor.

Company
SwiftKey is a British developer of virtual keyboards for mobile touchscreen devices and a language technology company.

Founded in 2008, the company's main product is a free app that provides predictive and swipe-enabled typing on mobile devices. Based in London, the company also develops language technology for people in need of special assistance with speaking and typing, including the technology used in physicist Stephen Hawking's wheelchair.

People
SwiftKey – Jon Reynolds, Ben Medlock (founders).