REG - TMT Investments - Portfolio Update

TMT InvestmentsAnnouncement

06/06/2024 07:00

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RNS Number : 3224R  TMT Investments PLC  06 June 2024

6 June 2024

 

TMT INVESTMENTS PLC

("TMT" or the "Company")

 

Portfolio Update

 

TMT Investments Plc (AIM: TMT.L), the venture capital company investing in
high-growth technology companies, is pleased to announce the following
developments in the Company's portfolio since the publication of its 2023
Annual Report on 19 March 2024.

 

Positive revaluations

 

·    OneNotary, an online notary service (https://onenotary.us
(https://onenotary.us/) ), has completed a new Series A equity funding round
of US$5 million and entered into a partnership with Docusign
(https://www.linkedin.com/company/docusign/) to provide a best-in-class
third-party notary network to DocuSign customers ("Docusign Notary"). Docusign
is trusted by hundreds of millions of users world-wide and meets electronic
signature regulations, including eIDAS (electronic identification and trust
services). The round was led by Jackson Square Ventures
(https://www.linkedin.com/company/jsv-vc/) , with participation from DocuSign
founder Tom Gonser (https://www.linkedin.com/in/tgonser/) .  This formal
partnership with DocuSign marks a major milestone for OneNotary, as it will
integrate OneNotary into DocuSign's range of notary solutions. The
integration, when launched early this summer, will expand DocuSign Notary into
third-party notaries, providing more opportunity for best-in-class, regulatory
compliant, and certified options for DocuSign customers.  The transaction
represented a revaluation uplift of 85% (US$0.4 million) in the fair value of
TMT's investment in OneNotary, compared to the previous reported amount as of
31 December 2023.

 

·    Praktika.ai (https://praktika.ai (https://praktika.ai/an) ), a
language learning app with personalised AI-powered avatar tutors, has
completed a new US$35.5m Series A equity funding round, led by Blossom Capital
(https://www.blossomcap.com/) .  In contrast to most language learning apps
that focus on human interaction with a human tutor or 'machine-to-human'
interaction involving clicks and drag and drops, Prakitika.ai is the only app
focused on tone of voice, where the user mimics human-to-human interaction.
 Praktika was the first to master this AI avatar approach, which is very
natural to language learning.  At the end of May 2024, Praktika reported 1.2
million active monthly users across 100 countries, with revenue of almost
US$20.0 million in the last twelve months.  The Series A equity funding round
represented a revaluation uplift of 1,144% (US$4.6 million) in the fair value
of TMT's investment in Praktika.ai, compared to the previous reported amount
as of 31 December 2023.  This positive revaluation of 12.4 times in only 5
months represents the fastest significant revaluation of a portfolio company
in TMT's 13-year history.  TMT's investment of US$400,000 into Praktika.ai
was made in December 2023.

 

Negative revaluations

 

·    In line with the continuing public market volatility, the share price
of NASDAQ-traded Backblaze Inc. has been quite volatile. Based on the closing
mid-market price of US$5.99 per share on 5 June 2024 (and adjusted for the
US$4.0 million net partial disposal proceeds received by TMT in 2024 to date),
the current share price represents a reduction of US$3.7 million in the fair
value of TMT's investment in Backblaze, compared to the previous reported
amount as of 31 December 2023.

 

Alexander Selegenev, Executive Director of TMT, commented:

 

"The investment TMT made in Praktika.AI in December 2023 was the 100th
investment by TMT since inception.  It has delivered the fastest significant
revaluation of a portfolio company in TMT's history, generating a 12.4 times
return in only five months.  This revaluation delivers a perfect example of
the exceptional venture capital opportunity presented by those start-ups whose
business models and products are based on genuine AI technologies and
applications.

 

The majority of TMT's portfolio companies, including its largest holdings,
continue to demonstrate good business progress and are adapting well to the
challenges of the current environment.  Some of the portfolio companies are
currently fundraising, and TMT expects further positive revaluations by the
time of the publication of its 2024 interim results.

 

At the same time, as the well demonstrated divergence between good and less
fortunate performers continues, TMT expects to announce a few
write-downs/write-offs as well.

 

We look forward to keeping shareholders updated on relevant developments in
due course."

 

 

For further information contact:

 

 TMT Investments Plc                                      +44 (0)1534 281 800

 Alexander Selegenev                                      (Computershare - Company Secretary)

 Executive Director

 www.tmtinvestments.com (http://www.tmtinvestments.com)   alexander.selegenev@tmtinvestments.com

                                                        (mailto:alexander.selegenev@tmtinvestments.com)

 Strand Hanson Limited                                    +44 (0)20 7409 3494

 (Nominated Adviser)

 James Bellman / James Dance

 Cavendish Capital Markets Limited                        +44 (0)20 7220 0500

 (Joint Broker)

 Ben Jeynes / George Lawson

 Hybridan LLP                                             +44 (0)20 3764 2341

 (Joint Broker)

 Claire Louise Noyce

 Kinlan Communications                                    +44 (0)20 7638 3435

 David Hothersall                                         davidh@kinlan.net (mailto:davidh@kinlan.net)

 

 

About TMT Investments Plc

 

TMT Investments Plc invests in high-growth technology companies globally
across a number of core specialist sectors.  Founded in 2010, TMT has a
current investment portfolio of over 50 companies and net assets of US$208
million as of 31 December 2023.  The Company's objective is to generate an
attractive rate of return for shareholders, predominantly through capital
appreciation.  The Company is traded on the AIM market of the London Stock
Exchange. www.tmtinvestments.com (http://www.tmtinvestments.com) .

 

Twitter (https://twitter.com/TMT_PLC)

 

LinkedIn (http://www.linkedin.com/company/tmt-investments-plc)

 

Facebook (https://www.facebook.com/TmtInvestmentsPlc/)

 

 

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