Molten Ventures (GROW)

Momentum is building in the portfolio of venture capital investor Molten Ventures plc (GROW), with top holding Revolut grabbing the headlines after a major funding deal with NVIDIA, but other key positions also seeing valuation uplifts and providing cash realisations that validate the NAV. Operationally, the 16 core positions in the portfolio are performing well, with six now profitable and the core outperforming the remainder, the emerging portfolio. This reflects encouraging activity in the larger and later-stage companies in the European VC space, as the environment continues to improve for unlisted growth equities.

The momentum has been felt in the share price, which has delivered outstanding returns of c. 67% over the year to 23/01/2026. The discount has narrowed from c. 60% in April last year to c. 29% at the time of writing. Significant value, therefore, remains even after such a strong run. GROW does not employ structural gearing, unlike many investment companies trading on similar discounts.

Recent contract wins for Finnish satellite manufacturer ICEYE illustrate the potential in the portfolio, with European spending on defence and strategic independence behind these deals. These contracts have not yet been reflected in valuation of the company or GROW’s NAV, with ICEYE making up 5.1% of the portfolio before they were agreed. Satellite launch company Isar Aerospace is set for a test launch in the coming months and is another company to win contracts thanks to the same trends. Other thematic exposures include fintech, enterprise software and digitalisation, as well as the energy transition, quantum computing, crypto and the blockchain. AI is opening up opportunities for many companies playing these themes.

Realisations have provided cash that allowed new investments over the period, as well as buybacks, in some cases, GROW investing alongside the EIS and VCT that it manages for external investors. Management fees from these funds offset the plc’s costs, and thanks to recent savings, the operating costs have fallen to 0.1% on a net basis, meaning management of GROW’s portfolio is effectively being provided for free.