Edison Ventures reaps 14x return from Liberty Tax Service exit


new york5_lrgVenture capital firm Edison Ventures has received a massive return of 14 times from the sale of its investment in Nasdaq-listed tax preparation company Liberty Tax Service.

Edison backed Liberty Tax Service with a $3.3m investment in July 2012 and received proceeds of $45m from the exit.

The company, which has more than 4,400 offices, has prepared almost 16 million individual income tax returns.

Edison Ventures managing general partner Chris Sugden said, “John Hewitt and the Liberty Tax management team have created an impressive industry leader, which is consistent with Edison’s goal for every investment.”

Last year Edison made a cash return of ten times from the sale of its investment in communications management software business Tangoe.

Edison Ventures closed its latest fund in February 2012 on $249m, having already invested more than one fifth of it in tech-based companies.

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