Euromoney buys 10% interest in California-based Zanbato

Euromoney Institutional Investor has acquired a 10% interest in intentional private capital placements platform and workflow tools provider Zanbato, for a consideration of $5.5m funded from existing cash resources.

Euromoney, which is an international online information and events group, said the investment is part of a $14m series B funding round aimed at expanding the capital base of Zanbato. Other key investors include Silicon Valley serial entrepreneur Joe Lonsdale, Formation8, a Silicon Valley technology investment fund, and Accelerate-IT Ventures, a US-based venture capital firm which led the round.

As part of the transaction Euromoney will also receive a seat on the Zanbato board.

Earlier in the year, California-based Zanbato and Institutional Investor, a division of Euromoney, agreed to enter into a joint venture to bring together the technology of Zanbato and the market reach of Institutional Investor's Investor Intelligence Network, a private online membership, to serve the institutional segment of the private placements market.

Euromoney said its decision to invest in Zanbato is consistent t with its strategy of expanding its digital offering into workflow solutions and follows the recent investments in Dealogic and Estimize.

Chairman Richard Ensor said: “Our partnership with Zanbato will enable our Institutional Investor division to expand further its digital revenue streams by tapping into the fast-growing online private placement market.

Over the next five years, this sector has the potential to create a significant opportunity for placement platforms. With its advanced SaaS technology, Zanbato is well placed to take an important share of this market."