GCIMindflair reports steady progress across AI-focused portofolio in FY23
() , an AI-focused tech investment company, issued a trading update for the year ended December 31, 2023.
Mindflair's net asset value (NAV) was £5.84m at year-end, compared to £7.82m the previous year. The reduction was mainly driven by the liquidation of Emergent Entertainment where had originally invested c. £200k. Mindflair's NAV per share was 2.13p at year-end. The company raised £730k in December 2023, and is halfway through a 2-year £1.235m loan facility.
Mindflair's portfolio continued to make progress, with multiple funding rounds during the period for companies CameraMatics, Landvault, Engage XR, Virtex, and VividQ. made a maiden investment in Captur in October 2023, which has an AI platform for image recognition.
invested in the third SVV fund (SVV3) by Sure Valley Ventures, alongside Enterprise Ireland, the investment arm of the Irish government. Meanwhile, the SVV1 fund where Mindflair has a 13% direct investment, entered the realisation phase of its investment cycle.
View from Vox
Mindflair reports good progress across its portfolio in FY23. While the NAV fell to £7.82m, this was primarily related to the liquidation of Emergent Entertainment where 's original cash investment was only £200k. The NAV per share is still very attractive at 2.13p, compared to a current share price of 0.48p.
Despite a difficult year for technology smallcaps, 's portfolio performed well, generating multiple rounds of funding. Investee Virtex closed its first major commerical deal in Decmeber worth £3.5m, and raised new funds at a higher valuation than the original investment. Another notable portfolio company is Getvisibility, one of 's larger investments, which materially increased its footprint and revenue, now with 250 customers in 39 countries. Likewise, companies CameraMatics and Smarttech247 reported significant growth.
In our estimation, is significantly undervalued, given the scope for material valuation uplift of the companies within its portfolio, the expected growth of the AI sector, and progress reported so far across the SVV1, SVV2 and the new SVV3 funds through which invests. We expect to see more realisations and liquidity events from the portoflio in the coming months. As mentioned, SVV1 has now completed its deployment phase and entered a realisation phase, expected to generate further cash inflows for .
Post-year end, SVV3 made its first investment in Inspeq AI, a transformative full‐stack AI Ops platform, alongside Delta Partners and a number of other leading investors. In the same month, SVV3 made its 4th investment in Ittybit, a pioneering developer tools company.
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