Portfolio Update Q1 2021 period

RNS Number : 6028Y

Sure Ventures PLC

14 May 2021

 

Sure Ventures plc ('Sure Ventures' or 'the Company')

Portfolio Update Q1 2021 period

Sure Ventures is a London listed venture capital fund which invests in early stage software companies in the rapidly growing technology areas of Augmented reality ('AR'), Virtual reality ('VR'), Internet of Things ('IoT') and Artificial Intelligence (AI). We are pleased to provide an update on the Company's investment portfolio.

SURE VALLEY VENTURES FUND

Sure Ventures made a €7million commitment to Sure Valley Ventures Fund ('Sure Valley') representing an interest in Sure Valley of approximately 25.9%.  This commitment was made at a price of €1.00 per share. The current NAV of the Sure Valley Ventures ICAV is 99.84 Euro cent.

Sure Valley has several investments across the AI, AR, VR and IoT sectors:

VR Education Holdings (VRE)   -  http://immersivevreducation.com/

HTC are now a major Shareholder in VRE and this validation has helped it gain break through contracts  since 30 June 2020, particularly in the US market, with sales of the ENGAGE platform for training and remote distance learning purposes to several organisations including Facebook, the United States Air Force Academy, University of Arizona, Colorado State University, SNCF, Lobaki, Houston Community College and Stanford University.

There has also been Engage contracts signed in Japan and China via its HTC global sales relationship. Announcements this quarter have shown they have now reached 100 ENGAGE customers and achieved a 4-fold rise in revenues to 800K Euros in first four months of the year. The HTC relationship is progressing well with the ENGAGE product being "bundled" into the VIVE Focus 3 XR launch. Dave Whelan, the CEO, believes this is a major step in their Chinese roll-out.

  WarDucks   -  www.warducks.com

The company has six bestselling titles under its belt, the latest two of which were Top Ten on PlayStation VR. The company is building on its success to date and is now developing a major new AR mobile game that is in the same category as Pokemon Go. To achieve this the company has hired  well-known and renowned game developers from the US and brought them to Dublin. They have brought on the famous game designer John Romero to help design the new product. John Romero, cofounder of BAFTA award-winning Romero Games studio and winner of over 100 awards, will work as a Creative Consultant.

To enable the company to take this product to the market it completed a Series A round of €3.284 million in Q1 2019 with new investors, EQT, investing €2.58 million. Sure Valley has also made a further investment to maintain its percentage holding with an extra €453,858.32. Existing investors have made up the remaining investment. The latest product is in "Alpha" (out of context and not necessary Remove) . The transaction completed on the 29th of March 2019. Sure Valley originated the investment by putting in €300,043 in WarDucks at pre-money valuation of €2.5 million and followed on by investing €453,858.32 at a pre-money valuation of €10,000,000. As a result, Sure Valley holds 10.10% of the company on a fully diluted basis. The company recently hosted a visit in their offices from Tim Cook, CEO of Apple to meet the team and view the game. Tim gave the team a positive public endorsement shortly afterwards.

Wia   -  www.wia.io

WIA  https://www.wia.io/ is an Internet of Things (IoT) company with a ground-breaking cloud platform https://www.wia.io/product, enabling developers to turn any type of sensor device into a secure, smart, and useful application in a matter of minutes. This generates considerable time and cost savings for teams who would have previously had to spend many months on 100,000's of lines of code to try to build out their own IoT cloud infrastructure.

During the COVID-19 lockdown the company has focused on developing IoT Tech to help businesses return to the workplace safely. In June Wia released the next iteration of the Wia Cloud. The new Wia Cloud is designed to help businesses understand and monitor their building, making it a powerful tool in the effort to return to the workplace. The service focuses on:

·  Occupancy and Space Utilisation

·  Energy Utilisation

·  Regulation Compliance

As part of this platform Wia created their own DFS-1 directional motion sensor. The Wia DFS-1 is a whole new way to measure the in-flow and out-flow of people to create safer, greener, and more human-centric buildings. The Wia DFS-1 has been deployed at a number of customer sites including Hubspot and Irish Distillers in Dublin.

Cameramatics   -  www.cameramatics.com

Cameramatics  is the leader in camera and software solutions for commercial fleets. Cameramatics delivers products that allow fleet managers to reduce fleet risk while increasing driver safety and complying with ever-increasing governance and compliance regulations.

Pre Covid-19 the company was performing exceptionally well and to support the company grow rapidly Sure Valley invested a further €750,000 in convertible debt (€250,000 in Q1 2019, €250,000 in Q2, 2019 and €250,000 in Q4, 2019) and Enterprise Ireland invested €250,000 in Q3, 2019. This quarter Covid-19 has led to a short-term drop in revenues since logistics and delivery businesses were closed or inactive. Despite this the management team have done an excellent job of managing cash.

CameraMatics ("Mysafedrive Ltd") successfully raised over €4 million in a Series A Investment Round (Announced 11^th Jan 2021) from a consortium of investors led by Puma Investments. Existing investors, Sure Valley Ventures and Enterprise Ireland also made follow on investments. Sure Valley Ventures had originally led the "Seed Round" in November 2017 and this round represents close to a 4-fold unrealised gain on our initial investment

Quarter 1 has seen increased Sales with total Revenue for Q1 over 200% of the business plan. During the

quarter the company added its first mainland Europe customers as well as launching several high

profile partnerships in the US market. The overall market for Cameramatics continues to grow as

customers continue to migrate from traditional telematics to Cameramatics particularly as insurance

companies and government initiatives around the world focus on improving safety for all road users in

cities and urban areas. We see this trend continue with initiatives like Vision Zero in the US now starting

to gain momentum across many US states and European cities looking to mirror the Direct Vision standards in London.

  NDRC Arc Labs   -  http://www.arclabs.ie/

The NDRC@ArcLabs investment was structured as a subscription as a limited Partner to the Accelerator. The purpose of the Accelerator is source and develop 30 start-ups over two years that Sure Valley had the right to invest in. The Accelerator has run three calls for 10 start-ups over 3 years in areas that are related to the fund's investment strategy of AR/VR, IoT and AI. As a result of the Accelerator's programme significantly overlapping with the Fund's investment areas, we saw this Accelerator being a source of proprietary deal flow. The fund invested €300,000 over three calls. The three calls have been run and the accelerator is now in wind down.

Nova Leah

Nova Leah  is the leader in cyber security for connected medical devices and is an IoT investment by Sure Valley Ventures. Nova Leah sells directly to the top medical device manufacturers typically in Boston, MA (?) and the west coast of the USA. The founder, Anita Finnegan, is an expert in this area. She originally built the technology in a top medical device software research group (in DKIT),? while doing a PhD. She later spun out the technology and developed a market by selling into several Tier 1 medical device manufacturers.

Sure Valley Ventures invested €750,000 in the company for 10.62% of the company fully diluted. The investment closed on the 5th of October 2018 the company was successful in the Irish government Disruptive Technology Fund (DTIF) programme for €1.5 million. (not sure what you mean here)

The company is making good progress on its Annual Recuring Revenues (ARR) and is in the final stages of completing a deal with major medical device company which will bring its ARR close to the point where it can complete a follow-on raise.

Admix Ltd    

Technically Admix has developed what is called a Supply-Side Platform (SSP) which enables developers to monetize their content by creating, managing and sell advertising inventory. Being an SSP, Admix is a broker that sells developers (think WarDucks) inventory programmatically at scale. Being programmatic automatizes the buying/selling process. Admix enables, for the first time, VR/AR inventory to become immediately available to thousands of advertisers connected to the existing ecosystem, which provides VR/AR developers with instant revenue.

Admix's proprietary ad formats have been developed together with existing  . The DSP's that Admix have connected to are market-leading partners, such as   Pubmatic, and are amongst the largest platforms in the world. These platforms are used by thousands of brands and advertisers and are processing billions of impressions daily. This gives them significant scale in the market.

To support its growth the company completed a Series A round on the 31st of March 2020, raising $6.25 million with a pre-money valuation creating a substantial uplift on our original investment.

The investment round was led by an investor called Force over Mass investing $4m with participation from Speedinvest who invested $450k and SVV who invested $535k. Admix have used this cash to great effect and revenues have grown 550% year on year and we look forward to continued progress.

VividQ Ltd

VividQ is a deep tech software company with world-leading expertise in 3D holography. The company was founded in 2017 by a team of expert engineers, mathematicians and computer scientists from the Universities of Cambridge, Oxford, and St Andrews, who solved key technology barriers in the adoption of holographic display.

Holography has long been considered the ultimate display technology. The science fiction ideal of engineering and manipulating light to produce 3D projections appealed to the imagination of millions through franchises such as Star Wars or Star Trek. While physically possible, the tremendous computing requirements to create full-depth holographic display made it unreachable for commercial applications.

VividQ continue to partner with some of the leading chip manufacturers, hardware developers and users of holographic display. The company announced a partnership with ARM Holdings in the last quarter and signed its first major contract with a Chinese and Hong Kong based car manufacturer.

Ambisence    

Ambisense's  Ambisense's Ambilytics™ platform optimises the delivery of environmental risk assessment on some of the world's largest infrastructure projects across industrial, Oil & Gas and Waste Management verticals, partnering with global multinationals such as CEMEX, SGS & Arcadis. Ambilytics™ encompasses both IoT and AI solutions, combining information from remotely deployed field devices with contextual data sources such as weather, satellite, geophysical and operational data to build machine learning models. These models identify the relationships, patterns, and drivers hidden within the data and allow customers to forecast and predict the behaviour of targeted environmental pollutants.

Since completing our investment, Ambisense have identified increasingly significant government backed infrastructure projects which via tender process, the Company have been successful in winning. In two particular use cases, the contractors concerned feared that the technology they required 'didn't exist in the market', but such is the power behind Ambylitics and the ability of the Company to design effective and bespoke monitoring models, the Company has been successful in winning these multi-year, recurring revenue contracts.

The Company successfully operates on a break-even basis, despite Covid-19 related issues. In fact, it has been successful in winning new contracts due to their ability to solve for IOT monitoring models, whatever the circumstances.

GetVisibility

Visibility Blockchain Limited trading as Getvisibility was established on the 31st of August 2017 by Ronan Murphy and Mark Brosnan. The company has developed and launched a software platform called Getvisibility targeting this data security sector. This software delivers visibility over unstructured data, e.g., Word documents or pdfs, for enterprises, by automatically, accurately, and precisely scanning and classifying the data to a corporate taxonomy using artificial intelligence (AI) at scale (NLP and Neural Networks).

On 7 August 2020, Getvisibility announced that it had signed a public sector distribution agreement with immixGroup, the leading value-added distributor of enterprise IT for the U.S. public sector. The agreement will allow Getvisibility to grow its public sector business, accelerate sales cycles, and operate more efficiently in the government market. Federal agencies will also be able to deploy Getvisibility products on-premises and into their existing cloud infrastructure.

GetVisibility is experiencing emerging interest to provide a solution for EUC audit compliance which could represent a substantial market vertical. Inbound interest has been expressed by Accenture, KPMG, PWC and Grant Thornton. Getvisbility has started work on an open API and SDK, (What?) this will facilitate easier and faster integrations. Phase 1 is expected to be released in early Q2 and the company has obtained advanced EIS assurance ahead of its series A funding round.

Buymie Technologies

Buymie is an on-demand grocery service, currently available in Dublin, Ireland and Bristol, UK. An individual can order goods from a selection of local stores such as Tesco and Lidl in Ireland and the Co-op and Asda in the UK via the Buymie app and have them delivered by a personal shopper in as little as 1 hour. Delivery charges from €3.99 (free for orders over €100), up to 30% cheaper than visiting a traditional convenience store. More convenient than traditional eCommerce platforms reducing the environmental impact of grocery shopping.

Sure Valley Ventures initially invested in Buymie's Seed round in March 2020, investing €300,000 at a pre-money valuation of €8,000,000 giving SVV a fully diluted equity position of 3%. The seed round was led by ACT Venture capital with participation from Haatch Ventures, BVP Ventures, HBAN and Enterprise Ireland.

Sure Valley subsequently participated in Buymie's Series A round which was completed in June 2020. The total amount of capital raised was €5,400,000 and was led by Wheatsheaf group, the investment arm of the Grosvenor estate. The pre-money valuation was €15,000,000. SVV invested €510,000 and has a fully diluted equity position of 5.05%.

Buymie have now partnered with Co-op, Lidl, Dunnes and are in talks with other major UK and Irish Supermarket chains. The COVID19 environment is accelerating the growth of Buymie and the pace of its expansion continues in an aggressive manner.

2020 saw Buymie solidify its position as a market mover with several nominations for awards such as the EY Entrepreneur of the Year award and various other awards and the recognition continues into 2021 with Buymie now seen as one of the world's top retail tech companies. December GMV came in at €1,5m and January has started strongly with? and Buymie are currently forecasting €2M GMV which shows that they have grown over 6x in the last 6 months. The GMV run rates is currently €30M this year at the base line level.

Volograms Limited

Volograms is an Augmented Reality (AR) capture and volumetric video company. Volograms' technology enables users to capture volumetric holograms (or volograms) of real people. By inserting the 'Volograms' into videos, people can create their own immersive Augmented Reality (AR) and Virtual Reality (VR) content for use in apps, social media, and VR headsets.

The mobile AR market is forecast to grow from the one billion compatible devices and over $8 billion in revenue in 2019 to 2.5 billion compatible devices and $60 billion in revenue by 2024. The Volograms mobile product will enable mobile phone users to take AR pictures and videos, then view, edit, and share them with others. This can be done directly or through social media platforms.

We believe that Volograms is opening a new market category for AR photos and video. This category should have much greater appeal for content creators and social media users than the existing static 3D content solutions on offer. Central to the company's future success is (i) its OEM strategy (ii) consumers then adopting the technology. Given this, the SVV deal team agreed with the company that they would bring in some additional people with experience of an OEM strategy and mobile consumer products. If successful Volograms has the potential to be massively scalable and potentially usher in the rapid expansion of the mobile AR industry.

Pre-Cog Systems

Polience Limited t/a PreCog Systems is an InfoSec company that has developed a proprietary system to counter terrorism, prevent crime, support border control agencies and prevent people trafficking. Sure Valley Ventures (ICAV) invested £750,000 for a 15% holding in the company.

Governments, organisations and owners of property assets and inventory need to understand the

behaviour and intent of visitors to their sites. They need novel technology to allow them to react in realtime so that actions can be taken to understand the complexities of their environments and to protect them from harm and bad actors.

PreCog is a patent pending software solution that understands visitor flow, protects borders, detects

persons of interest and ensures locations are protected from those who wish to cause damage or commit crime. PreCog provides totally unique, scalable, actionable intelligence solution. Customers include top UK and International Government security and law enforcement agencies & transport infrastructure organisations.

DIRECT INVESTMENTS

Investments made directly by Sure Ventures plc:

Immotion PLC    

This is a UK based company that creates its own high-quality VR content and enhances the immersive experience by coupling this content with motion simulation.

In February 2020, the company released a trading update stating that they had deployed above 460 contracted headsets in high footfall tourist attractions globally. This figure represented the estimated number of headsets required to reach breakeven and sales momentum was progressing at a strong pace.

The nature of Immotion's business meant that COVID 19 and lockdown restrictions reduced their revenues dramatically. The footfall at sites across the globe ground to a halt. The Management team have done a good job of reducing costs and using the various Governmental schemes available to keep the business funded.

Recent market updates show that the company has navigated the situation well, with cash preservation, the sale/launch of its in-home AR/VR product and the sale of its UV light cabinets. We would like to congratulate Martin Higginson, David Marks and the whole team for what can only be described as "dogged" performance. 

VividQ

Sure Ventures PLC has a further direct investment of £500,000 in VividQ, on top of its 25.9% exposure via its holding in Sure Valley Ventures ICAV. The progress being made, the tie ups with major global technology players and the pathway of holography adoption being laid out provides a great deal of promise for the future. (See previous VividQ paragraph above).

Sure Ventures Director, Gareth Burchell said,  "We have seen a small decline in our NAV over the quarter due to an FX loss (GBP vs EUR) and the short-term price decline in VR Education (VRE). It is great to see VR Education's more recent announcements have rectified that decline and significant revenue growth has been achieved. The future for VR Education is looking very bright and the same is true for a number of our technology companies, including new addition Pre-cog Systems.

The COVID-19 environment has accelerated the growth of businesses such as Buymie, Admix and Ambisense. The post pandemic world will have changed enormously, with businesses looking to improve efficiencies via AI/IOT technologies, consumer behaviour experiencing a shift-change towards on-line consumption and the global commercial environment is embracing technological change at a greater pace then we had all imagined. The portfolio that has been established by the AIFM team is very well placed to take advantage of that environment and we look forward to updating investors with what we believe will be a transformational year for SURE Ventures PLC".

For further information, please visit www.sureventuresplc.com or contact:

Gareth Burchell	Sure Ventures plc	[phone]

Notes to Editors

Sure Ventures plc listed on the London Stock Exchange in January 2018 giving retail investors access to an asset class that is usually dominated by private venture capital funds.  Sure Ventures is focusing on companies in the UK, Republic of Ireland and other European countries, making seed and Series A investments in companies with first rate management teams, products which benefit from market validation with target revenue run rates of at least £400,000 over the next 12 months.  Website: https://www.sureventuresplc.com/  

 

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