Molten Ventures (GROW): A core tech holding through the cycle

London, UK, 22 March 2022

Molten Ventures (GROW): A core tech holding through the cycle

Molten Ventures is the leading listed venture capital (VC) in Europe, providing liquid exposure to Europe's high-growth tech start-up ecosystem, through a diversified investment holding company with a proven track record. Following the sell-off of technology and growth stocks, Molten now trades at a 18% discount to the H122 NAV. This is despite Molten delivering a 20% H117-H122 NAV/share CAGR and management's expectations for c 35% fair value growth for FY22 (implying FY22 NAV/share of c 929p). Molten offers a diversified technology portfolio across multiple segments, delivering the potential for NAV returns uncorrelated to the wider public markets. Management is confident in the outlook for the European technology sector and is focused on its Series B+ growth fund in 2022 to capitalise on the opportunity.

Investors are in 'risk-off' mode amid concerns over rising interest rates, elevated geopolitical risks and high technology multiples. After its strong performance FY21-H122, Molten's diversified portfolio and consistent track record of growth (five-year NAV/share CAGR of 20%) demonstrate why we believe the group warrants a premium to its peers, as a leading European VC company, in a sector with the potential to deliver strong growth and NAV returns uncorrelated with the public markets. Molten trades at 0.78x our estimated FY22 NAV per share (c 929p), with the discount to NAV potentially offering an attractive entry point to investors. 

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