SuperSeed Capital Ld - 3rd Quarter Results
RNS Number : 8936F
SuperSeed Capital Limited
10 November 2022
 

10 November 2022

 

SUPERSEED CAPITAL LIMITED

("SuperSeed" or the "Company")

 

 

THIRD QUARTER 2022 RESULTS

 

 

SuperSeed, a company established as a Venture Capital fund of funds for early-stage technology investing, announces results for the quarter ending 30 September 2022.

 

 

Investment policy

The Company, a registered closed-ended collective investment scheme invests in technology-led innovation, primarily through funds managed by SuperSeed Ventures LLP (the "Manager"). The Company can also invest in funds managed by other investment managers, or into individual companies, either directly or through special purpose vehicles.

 

 

Highlights 

·      SuperSeed II LP (the "Fund") closed investments into Garvis and Finteum in Q3.

·      A further investment in Techsembly was agreed in Q3.

·      This takes the total number of investments in the Fund's portfolio to 7.

·      Continued strong Fund portfolio revenue growth in Q3 - recurring revenue increased to 38% quarter-on-quarter. Year-to-date, the average revenue growth has been 12% per-month.

 

 

Post-period highlights

·      The Fund's investment in Techsembly closed in early Q4.

·      The next Fund investment in is lined-up to join the portfolio in early Q4.

·      The Fund sees good deal flow as it looks ahead to 2023, with new opportunities coming into the pipeline.

 

 

Portfolio commentary

In light of the current market uncertainty, the Manager has worked with Fund portfolio founders to trim their budgets and ensure they have the runway they need. But this has not stopped them from continuing to execute and deliver solid performance for the quarter. Committed Monthly Recurring Revenue (i.e. contracts signed by customers) was up 38% quarter-on-quarter on a like-for-like basis. The Manager keeps looking out for a meaningful slow-down in corporate spending, but fortunately, the Fund's portfolio companies have not seen it yet.

 

 

New investment - Garvis

 

Key information 

Forecasting demand is one of the most critical and challenging aspects of running a successful manufacturing business - whether in FMCG, electronics, fashion or other sectors. Today, forecasting is undertaken by specialist Demand Planners. The tools and processes are error-prone and time-consuming. Demand Planners are highly skilled analytical specialists, but their roles are underserved by technology. The majority of their work takes place in Excel. Garvis solves these challenges by enabling demand forecasters to incorporate more data and deliver better analysis using ground-breaking AI. Unlike competitors, Garvis can be set up and deliver value in just one day, and it is designed to combine the analytical power of software with the nuanced understanding and experience of Demand Planners. The synthesis of technological and human capabilities is why the team describes their offering as "bionic". It offers customers fast, accurate forecasting and planning, allowing businesses to optimise the sourcing, supply, and delivery of their existing product lines.

 

Investment name                                           Garvis

Industry                                                            AI

Geography                                                       Belgium

Currency of investment                                 GBP

Stage of initial investment                            Seed

Fund's role in initial investment                  Lead

Website                                                            https://www.garvis.ai/

 

Why did the Fund invest? 

Superior Product - Piet Buyck and Anupam Aishwarya have spent decades in the world of demand forecasting. Their deep subject matter expertise combined with years of working with businesses in this space has meant, from the outset, they have had a strong understanding of their ICP and how to sell to them. They have solved three specific problems better than any competitor: a) fastest implementation time - they can start delivering insights within 24-hours, and the forecasts then become more accurate with time; b) accuracy - their platform produces meaningfully better, more reliable and more accurate forecasts than competition, leading to better business outcomes; and c) usability - whereas other demand forecasting platforms are black box solutions, Garvis makes it easy for demand planners to interrogate the forecast, to tweak parameters and gain confidence in the outputs. 

 

Strong Traction - Garvis has grown rapidly and consistently since launching commercially in 2021. It has an impressive client list already, including Coca-Cola, J&J, GSK, and Q8. Given the land-and-expand nature of their contracts, there is an opportunity to upsell large enterprise accounts with more product lines once the solution has been implemented.

 

 

New investment - Finteum

 

Key information

Banks have an ever-increasing requirement to hold liquid assets on their books. And they must ensure they never have less than the required cash on hand. Because of this, they are increasingly finding that they have more liquid assets than they need - especially for short periods during the day (say,
3-4 hours at a time). This presents an opportunity for banks to swap their excess liquidity with other banks - if only they could find a way to do so for a few hours at a time. Enter Finteum, a SaaS company that has built a brilliant platform to help them do so. With an intelligent application of blockchain technology, Finteum is breaking new ground in the fintech sector.

 

Investment name                                            Finteum

Industry                                                             SaaS / Blockchain

Geography                                                        UK

Currency of investment                                  GBP

Stage of initial investment                             Seed

Fund's role in initial investment                    Lead

Website                                                             https://finteum.com/

 

Why did the Fund invest? 

Founding Team - Brian's extensive liquid asset and treasury experience and Zbi's development expertise means Finteum has both deep knowledge and network. Finteum is aware of banks' regulatory requirements, sales cycles, stakeholders, integration complexities, and appetite for a product that reduces the amount of balance sheet dedicated to intraday liquidity as well as generating new revenue streams.

 

Early Traction - Despite the early stage of the company, Finteum has already developed relationships with 14 of the world's largest banks, 3 of which are classed as 'founding members' as of July 2022. Several European tier 1 banks are already signed up to join the platform ahead of its launch in 2023 and have also spent a significant budget internally to facilitate Finteum's integration (legal, IT, operations and compliance).

 

 

New investment - Techsembly

 

Key information

Ecommerce has been enabled by several great SaaS platforms - chief among them Shopify. However, firms in the hospitality sector have found Shopify's platform to be entirely inadequate for their needs - especially as they look to sell experiences, vouchers, merchandise and food & beverage delivery on one platform. Enter Techsembly, a SaaS company that has created a beautiful platform focused on high-end hospitality. The company already has Peninsula Hotels, Aman Resorts, Belmond Hotels and Capella on board, with Raffles Hotels and Mandarin Oriental expected to follow shortly.

 

Investment name                                            Techsembly

Industry                                                             SaaS / eCommerce

Geography                                                        Singapore

Currency of investment                                  GBP

Stage of initial investment                             Seed

Fund's role in initial investment                    Lead

Website                                                              https://techsembly.com/

 

Why did the Fund invest? 

The opportunity - e-commerce is eating the retail world. Growing globally at around 20% per year since 2015, and now only at around 18% of total global retail sales. Techsembly currently focuses on large premium hotel groups and offers a payments platform that enables additional revenue streams beyond the booking experience e.g. room upgrades, vouchers, products and experiences, where it takes a healthy percentage of proceeds.

 

Differentiated product - e-commerce as a service is not new. e.g. Shopify, with revenues at USD 3 billion, opened up e-retail for 'Mom-and-Pop' stores all over the world, but due to the nature of its' architecture, is unable to support multi-currency / territory / tenancy installations, which is where Techsembly excels.

 

Experienced founder - Founder Amy Read has successfully built two businesses in complementary spaces so is not new to the founder experience. She has also built a superior team by bringing the best-fit team members to join her at Techsembly.

 

 

The directors of the Company accept responsibility for the content of this announcement.

 

For more information, please contact:

 

 

SuperSeed Capital Limited

 

+44(0) 203 405 3060

Mads Jensen, Investment Manager

Natasha Head, Investor Relations


 


VSA Capital - AQSE Corporate Adviser and Broker

+44(0) 203 005 5000

Corporate Finance: Andrew Raca

Corporate Broking: Andrew Monk, Peter Mattsson or David Scriven


 


 

SuperSeed Capital Limited

 



Condensed Statement of Comprehensive Income

for the period from incorporation on 6 October 2021 to 30 September 2022


 

 


Current Quarter

Cumulative

 

1 July 2022

6 October 2021

 

to

to

 

30 September 2022

30 September 2022

 

£

£

Income



Investment income

197

204

Unrealised gain on investments held at fair value through profit or loss

51,239

180,401

Other income

1,255

2,206

Total income

52,693

182,811

 



Expenses

 


Establishment costs

-

194,298

Administration fees

7,500

19,932

Audit fees

5,293

15,707

Directors' fees

4,500

13,500

Insurance

259

1,057

Legal & professional fees

14,297

28,333

Regulatory fees

3,025

11,314

Sundry expenses

321

1,151

Total expenses

35,195

285,292

 



Total profit/(loss) and comprehensive income for the period

17,498

(102,481)

 

 


Basic and diluted earnings per share

0.008749

(0.051241)

 



 

 

 

SuperSeed Capital Limited

 




Condensed Statement of Financial Position

as at 30 September 2022




 




30 September 2022

 



£

Non-current assets

 

 


Investments



1,647,196

Total non-current assets

 


1,647,196

 




Current assets

 



Trade and other receivables



5,491

Cash and cash equivalents



328,828

Total current assets

 


334,319

 




Total assets

 


1,981,515





Current liabilities

 



Trade and other payables



83,996

Total current liabilities

 


83,996

 




Total liabilities

 


83,996





Net assets

 


1,897,519

 




Equity

 



Share capital



2,000,000

Retained earnings



(102,481)

Total equity

 


1,897,519

 




Net asset value per ordinary share

 


0.948760

 




The interim financial statements were approved by the Board of Directors and authorised for issue on 9 November 2022.





 

 

 

SuperSeed Capital Limited

 







Condensed Statement of Changes in Equity

for the period from incorporation on 6 October 2021 to 30 September 2022



 

 

 

 

 



Share Capital

 

Retained Earnings

 

Total

 


£

 

£

 

£

Issue of Ordinary Shares


2,000,000


-


2,000,000








Total comprehensive income/(loss) for the period

-


(102,481)


(102,481)








Balance as at 30 September 2022

 

2,000,000

 

(102,481)

 

1,897,519








 

 

 

SuperSeed Capital Limited

 




Condensed Statement of Cash Flows

for the period from incorporation on 6 October 2021 to 30 September 2022



 

 



Current Quarter

Cumulative

 


1 July 2022

6 October 2021

 


to

to

 


30 September 2022

30 September 2022

 


£

£

Cash flows from/used in operating activities

 

 


Net cash flow used in operating activities

 

(25,707)

(272,130)


 

 


Cash flows from/(used in) investing activities

 



Net cash flow from/(used in) investing activities


(621,172)

(1,399,042)





Cash flows from financing activities

 



Net cash flow from/(used in) financing activities


-

2,000,000

 

 



Net movement in cash and cash equivalents during the period

(646,879)

328,828

 

 



Cash and cash equivalents at the beginning of the period

975,707

-

 

 



Cash and cash equivalents at the end of the period

328,828

328,828

 

 

 


 

 

 

SuperSeed Capital Limited

 




Investment Analysis

for the period from incorporation on 6 October 2021 to 30 September 2022




 

Investment in SuperSeed II LP



30 September 2022

 



£



 

 

Cost

 

1,466,795

Cumulative movement in value

 

180,401

Fair value

 

1,647,196



 

 

Investment fair value can be further analysed as follows: 

 

 



Current Quarter

Cumulative

 


1 July 2022

6 October 2021

 


to

to

 


30 September 2022

30 September 2022

 


£

£

Cost



Cost at beginning of the period

766,396

-

Cost of investment - settled

621,179

1,399,049

Cost of investment - due for settlement after period end

67,746

67,746

Cost of investment - prepaid, closing equalisation

11,474

-

Total cost of investment

1,466,795

1,466,795





Fair value movement



Fair value adjustment at beginning of the period

129,162

-

Revaluation of SuperSeed II LP underlying investments

66,318

225,368

SuperSeed II LP management fee and other net movements in NAV

(15,079)

(44,967)



180,401

180,401

SuperSeed Capital Limited fair value of investment

1,647,196

1,647,196

 




 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
NEXEAXFNEAFAFFA ]]>