Molten Ventures Share Discussion Threads

[brut winky] 14/12/2022 12:36

These look an interesting investment once the market bottoms out properly.

[johnkidd1] 09/12/2022 08:54

Market cap half net asset value. Tech stock valuations ticking up in US. Molten is a solid buy on valuation. Inflation abating a cost of fuel comes under control so interest rates will stabalises. All supports current and future tech valuations.

[bigbigdave] 01/12/2022 14:22

Looks like post results dip is over.

[rambutan2] 25/11/2022 05:17

Any easing on the cash front is very welcome:

Fund of Funds Programme update

Molten (LSE: GROW, Euronext Dublin: GRW), a leading venture capital firm investing in and developing high growth digital technology businesses, is pleased to announce that it has syndicated part of its Fund of Funds programme to Castlegate Investments, the private family office investment vehicle of serial entrepreneur, Tommy Kelly.

Molten Ventures' Fund of Funds is one of the leading European VC programmes backing early-stage fund managers. Since the programme inception in 2017, Molten Ventures has invested approximately GBP72m, out of total commitments of approximately GBP130m, to 67 early-stage VC firms across Europe as at 30 September 2022. Those managers include Seedcamp, Partech, Seaya Ventures and Earlybird Digital East among others. As of September 2022, the portfolio included over 1,500 companies. Castlegate Investments will commit a total of EUR30m to this programme, of which half will be used to acquire a proportion of Molten's existing seed portfolio, and half will be for future commitments of the Fund of Funds.

The Group intends to further broaden the syndication of its Fund of Funds programme, offering other investors access, through Molten, to the most innovative Seed Fund Managers across Europe, and creating opportunities to co-invest and deploy further capital into direct opportunities within their portfolio companies.

[rambutan2] 23/11/2022 14:44

Well worth a watch, especially the stuff on valuation policy:

MOLTEN VENTURES PLC - FY23 Interim Results presentation

[johnrxx99] 22/11/2022 07:15

Not a bad outcome yesterday. With tech stocks appearing to come back a bit (famous last words)we could see a positive few months ahead, subject the the black swans.

[cordwainer] 21/11/2022 12:26

NAV per share remains better than expected, I was guesstimating that £6 would be the eventual minimum, but now I’m thinking that may be too pessimistic. Good value share price even after strong rally from circa 250p low.

[johnrxx99] 21/11/2022 08:51

I agree DP that growth, if any, will struggle for 2023 or even longer but GROW is all about the future. If there isn't one in IT/AI, then we are fuked.

[donald pond] 21/11/2022 08:34

I don't agree with that analysis. Sales may be up but from what base and at what cost? Also, we have seen a valuation contraction so while 70% growth is good, the market is probably paying a quarter for early stage growth of what it was 18 months ago. OTOH GROWs valuations never seemed as punchy as the frothy end of the US market. But I'd say the current price is about right. One or two major winners though and it would look very cheap. Look forward to the webinars. I do believe these guys know what they're doing. It's the valuations the market applies that is harder to be confident about

[steph52] 21/11/2022 07:56

agree completely. We now have a NAV discounted against last round imposed valuations many of which were post downturn. We also have 70% sales growth per annum which increases valuations 70% from what ever NAV base is accepted.

Growth in NAV/share from here might be spectacular if market recovers. Cleary market not affecting sales and this will protect last round valuations going forward. .

[johnrxx99] 21/11/2022 07:44

As expected the NAV per share reduced to GBP8.37 from GBP9.37. The current share price of GBP4.50 is well covered but what the market will do today is beyond my crystal balls' range.

GLA

[mortal1ty] 11/11/2022 10:12

If tech valuations start to recover, and 70% growth for underlying companies is achieved in 2023, that 830p would probably have to rise 50%+? I guess this is the maths people are doing, which is why the discount is closing so quickly.

[johnkidd1] 11/11/2022 09:26

The excitement is about inflation slowly abating putting a lower ceiling on interest rates globally making growth stocks which have been hugely sold down more attractive. Molten is all about growth stocks.

[johnkidd1] 11/11/2022 09:11

Still 50 pc below net asset value. Even more as the prices of their investments rebound from being oversold.

[johnrxx99] 11/11/2022 02:36

r2 - totally agreed. I just hope we are not seeing a bear trap going into 2023.

[rambutan2] 10/11/2022 16:02

Well, AVI back in the money with today's rise.

And can't resist a small crow about my purchases last month at below 300p and below 250p - pessimism had gone off the deep end at those prices.

[rambutan2] 09/11/2022 22:30

Interestingly, according to its just released annual report, AVI Global (AGT) accumulated a 2.7% stake at an average price of approx 400p by its Y/E 30/09. The team there are disciplined value hunters and leave plenty of margin of safety when they buy into a position. So, a good vote of confidence imho.

[jomac2412] 09/11/2022 17:39

Still leaves them on around a 54% discount to the 830p Nav , what's the normal discount on these VC type funds ? didn't it trade at a premium at much higher prices ? They also just received an RCF from JPM and SVB for £150 million which was based on 10% of Nav so I guess they had a look at the value before they agreed on the facility , it's why I recently bought in , pretty volatile for a fund mind you !

[cordwainer] 09/11/2022 15:33

[ bumping this thread up to the top ]

[skyship] 09/11/2022 13:06

NAV 937p as at Q1'22. Any guesses as to what that figure might be as at Q3'22?

Ahh - sorry - see c830p as of the Update.

They obviously were seriously oversold down at 250p; but now - 50% up on that figure?

[w13ken] 02/11/2022 14:57

Martin Davis Edison interview where the GROW CEO discusses the latest results.

[spectoacc] 02/11/2022 14:56

Unarguably lower risk I reckon, tho could argue GROW's NAV has already felt some big writedowns, whereas the PE co's mostly yet to take them.

Greater than 50% also available, eg the lamentable SUPP. CHRY another. ALM a special case but fairly spectacular.

[riverman77] 02/11/2022 14:36

I guess it's all relative - 60% discount looks very attractive, but the likes of PIN and HVPE are not too far off that on 50% discounts, and arguably lower risk since they focus on established buyouts (which means NAV is more reliable as its based on real earnings).

[dickiehhh] 02/11/2022 14:11

Amazed this hasn't jumped higher. Around 60 percent discount to updated NAV isn't it? Ie. 350 share price/850 NAV? Or am I missing something? How do the preference shares mitigate the NAV revaluation? Can someone please enlighten me on thisThanks