Mindflair investee Sure Ventures sees 80% NAV increase in Q2
() , an AI-focused tech investment company, noted a Q2 NAV and portfolio update by its investee company Sure Ventures. Mindflair has a 23.8% interest in Sure Ventures, and Sure Ventures has a 25.9% interest in the SVV1 fund, which holds early-stage software companies. Mindflair also has a 13% direct investment in SVV1, hence Mindflair has a combined direct and indirect interest in SVV1 of c. 19%.
Sure Ventures made a €7m commitment to SVV1 to gain 25.9% interest. The commitment was made at €1.00/share, while the current NAV of SVV1 as of Q2 is €2.02, an 85% increase quarter-on-quarter, and the fund is fully invested. Sure Valley updated markets on four companies from the SVV1 portfolio - Landvault, Getvisibility, Virtex, and WIA Technologies.
In July 2024, Infinite Reality agreed to acquire Landvault for US$450m in an all-share transaction. SVV1 has a 7% shareholding in Landvault. Landvault is expected to seek a listing on Nasdaq in Q3 2024. The disposal has the potential to generate proceeds for Sure Ventures of c. US$8.3m, a c. 470% uplift on SVV1's carrying value of Landvault as of end of March 2024.
Getvisibility has an AI-powered platform for data discovery, classification, security and governance. The technology is underpinned by AI models, the strength of which prompted Forcepoint to partner with Getvisibiltiy in 2022 on a joint product. Forcepoint is a multinational software company based in Austin, TX, that develops security and date protection software. Forcepoint has revenues of c. US$680m and is owned by Francisco Partners (US$41.9bn AUM).
Virtex Stadium is an application that enables Esports organisers to host their existing formats on a 3D entertainment platform. Users will be able to download the application from the main PC VR app stores, Oculus and Steam, and use it with their VR headset of choice. A 2D version is also planned. Virtex closed a funding round in March 2024 done at a pre-money valuation that created a significant unrealised gain on the SVV1 investment.
WIA Technologies is an IoT company with a cloud platform that enables developers to turn any type of sensor device into a secure and smart application. Wia has successfully agreed an extension of a major energy monitoring project from 14 countries to 32 countries across the globe.
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Mindflair's 23.8%-owned Sure Ventures saw significant portfolio developments in Q2 2024, most notably the sale of Landvault to Infinite Reality in an all-share deal valued at US$450m. The disposal, as well as the uplift in Virtex during the period, resulted in a quarterly increase of 80% in the Sure Ventures NAV value. While the sale of Landvault was by far the main contributor to the NAV increase, the rest of the portfolio across SVV1, SVV2 and SVV3 holds significant promise as well, to be sold at multiples of Sure Ventures' invested amount.
The sale of Landvault could generate a significant uplift in the carrying value of SVV1's investment, with a realisation expected to follow as Landvault intends to list on Nasdaq in Q3 2024. Consequently, the move is expected to materially increase the valuation of Mindflair. The disposal has the potential to generate proceeds for Mindflair of c. US$6m, depending on the value of Infinite Reality shares, a c. 470% increase in SVV1's carry value of Landvault as of end of March 2024.
In our estimation, remains undervalued, given the scope for material valuation uplift of the companies within its portfolio, evidenced by today's update and other recent announcements. Continued projected growth of the AI sector, and progress reported so far across the SVV1, SVV2 and SVV3 funds through which invests, have bolstered investor confidence in the company's portfolio. Still, 's NAV/share remains very attractive compared to its current share price.
We expect to see more realisations and liquidity events from 's portfolio in the coming months as SVV1 has now completed its deployment phase and entered a realisation phase, expected to generate further cash inflows for .
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