GCIMindflair notes material progress across Sure Ventures' tech portfolio in Q4 as fund trades at significant discount to NAV
() , an AI-focused tech investment company, noted an update by its investee Sure Ventures on Q4 2023 portfolio performance. Sure Ventures is a VC fund investing in early-stage software companies in the areas of AI, augmented reality (AR), virtual reality (VR), and Internet of Things (IoT).
Sure Ventures has invested €7m in () , representing an interest of c. 25.9%. The commitment was made at a price of €1.00/share. The current NAV of the Sure Valley Ventures ICAV as of Q4 2023 is €1.24, which is a 7% decrease from its NAV in Q3 2023. The NAV performance was driven by Sure Ventures' portfolio of tech companies, with Q4 developments as follows:
Cuptur launched its real-time camera SDK into production, which is now being used by tens of thousands of users per month. The company continues to grow its market lead in mobility, with plans to launch with new clients in the US and AUS markets in H1 2024, as well as expand into delivery and logistics.
Everyangle, specialising in computer vision, recorded over 200% growth in 2023. The company recently expanded its product suite with demographic analytics and other improvements around Customer Identification and Speed of Service to enhance its footfall solution and reveal genuine convertible traffic.
Smarttech247 recently announced a significant contract with a global pharmaceutical solutions organisation worth €900k over 3 years. The company was also recognised again as one of the fastest growing tech companies in 2023 by Deloitte.
Wia, specialsiing in smart technology solutions, announced the closure of a 5-year contract with a major logistics company. The agreement is valued at €1.5m and underscores the industry's shift towards sustainability and the need for efficient resource management.
Ambisense recently signed a contract with Tuath Housing Association valued at €400k, to deliver 600 homes for their tenants. During the quarter, Ambisense was accepted onto the £80m Efficiency East Midlands dynamic purchasing system for Damp Proofing, Mould & Associated Works as a supplier of sensors and data across England and Wales.
GetVisibility was recently certified by the IMDA in Singapore, joining an exclusive group of organisations recognised for delivering exceptional software solutions. This is a notable achievement as GetVisibility inaugurates its Singapore headquarters for southeast Asia operations. GetVisibility founder Ronan Murphy was also selected to join the 14-member AI Advisory Council for the Government of Ireland during the quarter, joining OpenAI and Amazon.
Retinize launched its real-time VR platform Animotive in 2023, and now has 250 users signed up and several new features added. The team was also invited to present Animotive at 10 Downing Street during an event on the Northern Ireland investment ecosystem.
VividQ achieved a major breakthrough as it delivered the world's first images of real holograms projected through high-performance 4K display hardware. The ability to deliver 'retina resolution' computer-generated holograms can significantly improve the next-generation of VR headsets. During the quarter, VividQ raised £3.2m to create a 2-year available cash runway to fund future growth.
Cameramatics continued to grow ARR and customer wins in the US and UK, and expand into the US market. The business was chosen to receive c. €12m from the "Disruptive Technology and Innovation Fund" to develop next-generation neural processing units to improve driver safety. Notable recent contract wins and renewals include Van Elle, Maritime and Hendrick European.
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The Sure Ventures NAV was 96p at the end of December 2023, representing a 15% decrease across the period, down from 113p at the end of Q3 2023. The decline in NAV is almost entirely due to the recent funding round valuation of VividQ, and means the Sure Ventures share price now represents an attractive entry point at a 13% discount to NAV.
While dilutive, VividQ's fundraise will provide the working capital needed to maintain the company's strong momentum into FY24 and FY25, and is not a reflection on its business model or financial performance. Therefore, we see the 15% decrease in NAV as growing pains rather than lesser inherent value in Sure Ventures. The portfolio as a whole is performing well with multiple opportunities for profitable exits, while the share price still trades at a significant discount to NAV.
The Sure Valley Ventures Enterprise Capital fund commitment has a very small weighting to the NAV of Sure Ventures until deployment increases. It currently equates to 2% of the overall investment to date. Despite this, as AI technologies generate a new wave of exciting software solutions, the pipeline continues to build.
Mindflair has a 21.3% shareholding in Sure Ventures. Sure Ventures has a 25.9% interest in Sure Valley Ventures (SVV1) in which Mindflare has a 13% direct investment. Consequently, Mindflair has a combined direct and indirect interest in SVV1 of c. 19%.
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