Molten Ventures released its H124 trading update (to end-September 2023), with management expecting its NAV per share at c 735p, a c 5.7% decline from the end-March 2023 level as a result of a 3.6% negative fair value movement (excluding fx) across its portfolio. That said, management highlighted that the valuation environment is stabilising and that Molten’s portfolio performance remains resilient, with a good balance between growth (even if at a slower pace) and capital efficiency (with very limited exceptions). Molten’s shares currently trade at a 66% discount to NAV.
Molten Ventures has recently faced pressure on tech valuations and muted deal activity from macroeconomic headwinds. That said, management reflected the lower public multiples in Molten’s H123 valuations, with greater stabilisation occurring in H223 (gross portfolio value was down 19% excluding FX in FY23 but only 2% in H223). Molten now offers exposure to a curated portfolio of 70+ assets at a significant discount to NAV. Management remains confident the portfolio is well funded, with 80% of the Core portfolio having a cash runway of more than 18 months on current projections, and expects weighted average top-line growth of over 65% in 2023 across the Core portfolio. Therefore, it still assumes a limited £20m funding requirement across the portfolio in FY24.
Molten Ventures is a well-known London-based venture capital firm that invests in the European technology sector, with a portfolio of around 70 companies across enterprise technology, hardware and deeptech, consumer technology and digital health and wellness. In this interview, Martin Davis, CEO of Molten Ventures, discusses the recently released FY23 results, the underlying performance of its portfolio companies, the initial signs of stabilisation in valuations in the second half of Molten’s fiscal year, as well as the company’s cash preservation approach. He also comments on what Molten has done to mitigate the current difficult environment for technology companies. Finally, he shares his perspective on the current mood in the venture capital industry. For further insights on Molten Ventures, please read our research.