Molten Ventures is a London-based venture capital (VC) firm that invests in the European technology sector. It has a portfolio of c 70 investee companies and includes a range of funds (seed, EIS and VCT) within the group, as well as its flagship balance sheet VC fund.
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Molten had a very strong FY22 (net growth in fair value of 37%), delivering a solid series of cash exits. Despite this, Molten’s shares trade at 0.5x FY22 NAV/share of 937p, which seems an unjustifiably deep discount given its 26% y-o-y NAV/share growth and five-year NAV/share CAGR of 22%. Moreover, Molten has a broad-based portfolio, weighted towards more robust B2B business models, with quoted holdings representing only 4% of FY22 fair value. Allowing for share price falls to 8 June 2022, adjusted NAV/share still stood at c 925p. In our opinion, this level of discount is undeserved, with the core portfolio well-funded (80% funded to exit/24 months’ runway) and with recent funding rounds (Aiven, CoachHub, Thought Machine) having delivered material valuation uplifts.
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 288.8 | N/A | 268.9 | 207.3 | 1.4 | 1.4 |
| 2022A | 351.2 | N/A | 331.1 | 218.0 | 1.3 | 1.3 |
| 2023E | N/A | N/A | N/A | N/A | N/A | N/A |
| 2024E | N/A | N/A | N/A | N/A | N/A | N/A |
Industry outlook
After a strong run in 2021, sector discounts have widened across the board in 2022, with the market rotation towards value and out of growth. Despite this, the underlying portfolio performance has remained robust. This may present an attractive buying opportunity for longer-term investors.
Last updated on 28/09/2022Content on Molten Ventures
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Financials
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Share price graph
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| Forecast net debt (£m) | N/A |
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Price performance
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Key management |
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| Martin Davis | CEO |
| Ben Wilkinson | CFO |