Molten Ventures sees portfolio decline in tough tech market

Tech venture capital investor Molten Ventures said its underlying gross portfolio fell 17% in the quarter to September 30 due to tough economic conditions and rising interest rates.

The company, formerly Draper Esprit, on Wednesday said its full-year gross portfolio value was expected to be at least £1.45bn, compared with £1.35bn at the end of September.

Forex tailwinds, driven by a stronger dollar, provided a tailwind of around 5%, which meant the overall portfolio was down 12%, it added.

"We have built our model to capture upside and minimise downside, and we continue to invest funds and deploy our expertise to maximise value in our portfolio. Nevertheless, recent changes in public markets and our approach to valuation in line with the relevant guidelines have led us to report a decrease in fair value," said chief executive Martin Davis.

"We have maintained an ongoing engagement with our portfolio companies to build a clear understanding of their cash needs and maintain sufficient resources to support them as they navigate their way through uncertain markets, particularly given their own balance sheet strength."

Davis added that advances in technology and adoption by enterprises "has shown no signs of abating" with Molten "well positioned as ever to invest in these opportunities".