Molten Ventures PLC (LSE:GROW), formerly Draper Esprit PLC, forecast 35% growth in the fair value of its gross portfolio for the current year to end-March 2022.
The venture capital firm, which invests in high-growth digital technology businesses, saw the value of its portfolio grow 27% in the six months to 30 September 2021 to £1.35bn from £984mln at the end of March, driven by increases in the value of its holdings in Revolut, Trustpilot, Form3, and Ledger.
The net asset value (NAV) rose to 887p per share from 743p in the period, the company said in its earnings release.
Molten realised £67mln in the first half, predominantly from exiting SportPursuit, Conversocial and PremFina and from selling down its holdings in Trustpilot and UiPath.
Cash investments totalled £165mln in the first six months, exceeding the company's target of over £150mln for full-year 2022.
“We have been active in investing, building on the increased investment cadence we experienced in H2 FY2021, culminating in deployment being in excess of what we initially anticipated for H1,” commented Molten chief executive Martin Davis.
“This was due to an acceleration of rounds for some of our existing companies, but also through new investments, taking larger stakes and, crucially, leading rounds.”
READ: Draper Esprit steps up a gear following success of Cazoo, TrustPilot, UiPath investments
The company raised close to £108mln in June to take advantage of the growing European venture capital market and the post-pandemic shift towards technology and digitalisation.
Since the end of the first half, Molten has invested £36.6mln, including in British start-up Satellite Vu, and has realised cash proceeds of £26.1mln after selling further Trustpilot and UiPath share sales.
The company said it has added £75mln to its Fund of Funds programme to be deployed over five years, which will allow it identify potential dealflow opportunities from within seed stage portfolios.
The exploration of a potential growth fund continues to progress and will be a continued focus in the second half, it added.
“As we see the impact on the technology sector of the fundamental shift in our way of living and working as a result of the accelerated transition to digital, I feel greatly encouraged by the strength of our position in the market,” Davis said.
“While we cannot be certain about what the future holds in the technology landscape, I am confident in venture capital as an asset class and in our strategy, enhanced investment platform, and diversified, resilient portfolio which spans climate tech to health tech and fintech.”
Available cash totalled £156mln at the end of September, compared with £161mln six months earlier.