Molten Ventures (GROW)

Molten Ventures (GROW) has seen strong performance from its largest holdings continue into the current financial year, with new valuations achieved in Revolut and ICEYE which imply big gains to NAV even after the Molten team have taken these opportunities to realise some cash. These revaluations – Revolut by c. 50% in July and ICEYE by 236% in June – have not yet been incorporated into the NAV, next expected to be reported in October, meaning recent returns and the Discount are currently materially understated, with the ICEYE funding round implying a 16% gain to gross portfolio value alone. GROW’s shares have more than doubled over the past year as the discount has sharply narrowed and the NAV has made solid progress, but in our view substantial value still remains.

GROW’s core of 17 positions delivered an average fair value return of 26% over the year ending 31/03/2026, with more companies contributing meaningfully to this than in 2025, an encouraging sign of the market broadening. That said, while VC activity in Europe recovered in 2025, this has so far been focused on the larger deals in more mature businesses.

In the past year, expanding access to third-party capital has been a key strategic aim. A cornerstone investor for a new growth fund focused on the Series B rounds has been found, while Molten East, a fund focused on Eastern Europe, is nearing closure, and a new secondary fundraise is being planned. This approach allows GROW to continue to access new opportunities and provide funding to existing holdings over and above that facilitated by realisations. Realisations have picked up over the past two years, totalling £255m, with some of this cash being used to buy back substantial amounts of shares. We note GROW does not employ structural gearing, unlike many investment companies trading on wide discounts.