Resilience plays crucial role as Frog completes 3 exits in 12 months

1st June 2020 by Mike Reid, Senior Partner

Frog continues its momentum of positive investment announcements with the successful exit from Skimlinks, which alongside Mediatonic and EDITED, makes three in the last twelve months.  

This latest exit, in the middle of the global Coronavirus pandemic, marks a great year for Frog. Skimlinks helps publishing companies increase revenue through affiliate links in editorial content. It has acquired by technology and data-driven performance marketing company Connexity Inc. Frog first backed Skimlinks in 2014, which has grown into a highly profitable leader in its market, increasing its footprint from the UK into mainland Europe, the US and Asia.

In June 2019 Frog generated a return of 7.4x from digital gaming company Mediatonic, one of the world’s pre-eminent digital games developers. Earlier this year in March Frog’s stake in SaaS analytics leader EDITED was acquired as part of a growth capital investment led by Wavecrest Growth Partners and Beringea UK, with participation by Hermes GPE. The Mediatonic exit, amidst 3 new investments, also led to nomination for ‘Venture & Growth Capital House of the Year’ award, which Frog was honoured to be awarded at Unquote’s British Private Equity Awards, 2019.  

These exits highlight a central pillar of our Scale-Up Methodology and a focal point to our investment approach: Resilience. We invest in European software Scale-Ups with proven product-market fit, strong recurring revenues and positive unit economics. We collaborate closely with the CEOs in our portfolio, building resilient companies with sustainable growth on the path to profitability. 

We launched our new fund, Frog European Growth II, in October, with our first investment announced in February, who along with our FEG I portfolio have shown their resilience in response to the global pandemic. 

Mike Reid

Article by Mike Reid, Senior Partner

Mike launched Frog in 2009, after seven years in industry and 12 years at 3i. He represents Frog on the boards of Rated People, SHE Software and Modulr.