NetScientific PLC (AIM:NSCI), the deep-tech and life sciences venture capital investment group, said it is "successfully executing" its evergreen strategy, as it updated on progress alongside its interim figures.
It reported a 64% increase in total income to £1.15 million for the six months ended 30 June 2023, the majority of which came from core services provided by NetScientific and EMV Capital.
"During the first half, we have made significant progress and achieved important milestones as we continue to successfully execute on our 'evergreen' strategy, covering core operating costs through a combination of corporate finance fees and value creation services fees via our wholly owned subsidiary, EMV Capital," said chief executive Dr Ilian Iliev.
"We have also demonstrated our ability to generate profitable partial exits from our portfolio, even in the absence of a strong M&A or IPO market. Despite challenging capital markets, third-party syndicated investments have played a pivotal role, with EMV Capital syndicating funding of £5.6 million to support ten of our portfolio companies."
The portfolio valuation stands at £35.5 million, down from £41.8 million in 2022, primarily due to the decline in PDS Biotechnology share price to US$5.03 as of June.
This was partly offset by an 11% (£3.1 million) improvement in the fair value of the non-listed portfolio, including significant gains in Vortex Biotech Holdings, DName-iT, and Q-Bot.
Capital Under Advisory (CUA) increased approximately 11% to £26.1 million, up from £23.5 million in 2022. The company also reported £117,000 in profitable partial exits, with further sales post-balance sheet bringing the total proceeds to £895,000 year-to-date.
Group operational losses showed a marginal decrease to £1.6 million, compared to £1.7 million in the first half of 2022.
NetScientific continues to focus on value creation services, aiming to accelerate several portfolio companies to value inflection points that offer strong prospects for further fair value increases in the next 12 to 18 months.
"This essential funding for our portfolio companies has helped to facilitate the execution of their growth strategies and preparations for forthcoming scale-up investment rounds as well as supporting the appreciating fair value of NetScientific's direct holdings," said CEO Iliev.
"In such a challenging venture capital landscape, characterised by macroeconomic volatility and industry fluctuations, our in-house fundraising capacity distinguishes us from many of our peers."