Molten Ventures announces significant portfolio developments and exits

Molten Ventures (LSE: GROW, Euronext Dublin: GRW), a prominent venture capital firm, has disclosed recent pivotal developments within its portfolio, highlighting successful exits and robust investment rounds, signaling a strategic advancement in its operational focus.

Strategic Exits and Portfolio Highlights

Molten Ventures announced key transactions that underscore its adept investment and valuation strategies:

– Graphcore Acquisition by SoftBank: Molten Ventures has exited its investment in Graphcore, a leading developer of AI computing solutions, with a total return of $26 million. This exit, achieving a 0.9x multiple on invested capital, aligns with the firm’s strategic use of preference shares for downside protection. Graphcore will continue as a wholly-owned subsidiary of SoftBank, maintaining its operations across multiple global locations.

– Perkbox Acquisition Closure: The acquisition of Perkbox by Great Hill Partners has officially closed, with Molten Ventures expecting to receive cash proceeds of approximately £18 million. This transaction represents a 1.3x multiple on invested capital, surpassing the initial holding value.

– Endomag’s Ongoing Acquisition by Hologic, Inc.: The acquisition process of Endomag, a medical technology firm, by Hologic is progressing smoothly, with regulatory and financial adjustments on track. This deal is poised to yield a return significantly above the holding value, at a 3.7x multiple on invested capital.

These exits collectively contribute to over £520 million in realizations since 2016, reaffirming the strength and effectiveness of Molten Ventures’ investment strategy.

Core Portfolio Investments

– ISAR Aerospace’s Series C Funding: ISAR Aerospace secured £220 million in its latest funding round to expand its production capabilities in Munich, aiming to produce at least 40 Spectrum rockets annually by 2030. This investment reflects confidence in ISAR as a leading provider in the satellite launch services market.

– RavenPack’s $20 Million Funding: RavenPack, a big data analytics firm, raised $20 million to accelerate the launch of its new AI platform, Bigdata.com. This funding, provided by GP Bullhound, will enhance RavenPack’s offerings to financial professionals.

Martin Davis, CEO of Molten Ventures, expressed satisfaction with the firm’s strategic milestones, particularly highlighting the quality of exits and ongoing investments in core portfolio companies. “The recent exits and investments, even amid challenging fundraising conditions, attest to the high quality of our portfolio and validate our valuation methodology,” stated Davis. These developments are expected to bolster investor confidence in the firm’s net asset value.

Molten Ventures will continue to focus on maximizing shareholder value through strategic exits and targeted investments. A further update on the allocation of proceeds from these exits towards share buybacks, as per the firm’s capital allocation policy, will be provided post-receipt of the funds.