TLDR:
- Dovi Frances’ venture capital fund Group 11 experienced a 16% loss in 2023, amounting to $39 million.
- Most of the decrease in asset value is attributed to markdowns of holdings and lack of IPOs.
Dovi Frances, a prominent Israeli venture capital investor, saw his fund Group 11 suffer losses in 2023, with asset value decreasing by $39 million compared to the previous year. The fund, which invests primarily in fintech companies, attributes most of the decrease to markdowns of assets and the absence of IPOs among its holdings. Despite investments in companies like Next Insurance and TripActions, Group 11 faced challenges with significant losses from investments, an operating loss, and a markdown of Papaya Global shares that led to a 16% negative return in 2023.
The loss was exacerbated by Frances offering to sell his shares in Papaya Global at a 90% discount due to disagreements with the founder, leading to the fund’s exit from the holding. Group 11, formed as a partnership in the Cayman Islands, raised $200 million and trades on the TASE UP platform, with notable Israeli institutions and family offices among its investors. Despite an initial upward revaluation of assets, subsequent revaluations have brought the fund back to its starting point, with management fees totaling $9.6 million since inception.
