Steady Growth in Turbulent Times
TMT Investments has navigated choppy waters to deliver a 3.8% NAV increase in H1 2025, lifting its net asset value to US$213.9 million. Against a backdrop of “macroeconomic and political instability” – Executive Director Alexander Selegenev’s diplomatic description of today’s venture capital landscape – this growth feels like a quiet triumph. The real intrigue? A cocktail of currency tailwinds and explosive AI-driven valuations did the heavy lifting.
Scale AI: The Portfolio Rocket Fuel
Let’s cut straight to the headline act: Scale AI’s valuation surge. When Meta Platforms injected fresh capital in June 2025, it catapulted Scale’s valuation to over US$29 billion. For TMT? A 138% fair value uplift on their holding – translating to a US$0.7 million revaluation gain plus a US$0.6 million cash dividend. That’s a 2.38x leap in just eight months.
Why it matters:
- Validation: Meta’s backing signals heavyweight confidence in Scale’s “humanity-first” data labelling tech.
- AI Momentum: Proof that elite AI plays still command premium valuations despite market jitters.
- Portfolio Impact: This single revaluation offset nearly half the US$1.5m write-downs elsewhere.
Supporting Cast: Bolt and Rhino Shine
Scale wasn’t flying solo. Two other portfolio stars delivered positive surprises:
- Bolt: Partial disposal to an independent buyer generated US$0.8m cash while the ride-hailing firm hit EBIT positivity and expanded to 850+ cities globally.
- Rhino: Fresh funding for this Latin American armoured car service triggered an 87% fair value bump (US$520k).
Add a US$2.7m currency boost from Euro/GBP-denominated holdings, and you’ve got the engine behind that NAV growth.
The Downside: Prudence Bites
TMT’s “highly prudent valuation approach” saw seven investments written down – a sobering reminder of VC’s binary nature. Notable casualties:
- SOAX: 50% haircut (US$2m) on the proxy service provider.
- Backblaze: 8% reduction despite being EBITDA positive – a victim of its depressed Nasdaq price (US$5.50/share).
- Go X & Qumata: Full write-offs totalling US$0.6m amid “unclear prospects”.
This housekeeping illustrates TMT’s discipline: ruthlessly re-rating laggards while letting winners run.
Portfolio Heavyweights: Progress Report
How did TMT’s top five holdings perform in H1?
- Bolt: Double-digit revenue growth, EBIT positive.
- Backblaze: 16% revenue growth, adjusted EBITDA positive.
- 3S Money: Double-digit revenue growth (narrowing EBITDA loss).
- Scentbird: Double-digit growth, profitable, launched in UK.
- PandaDoc: Double-digit growth, 65k+ customers.
Critically, most portfolio companies now operate profitably or at cash flow breakeven – a vital adjustment to today’s “stress year” environment.
Deployment Discipline: Cautious Capital
TMT’s investment throttle remains tightly controlled. Just US$500k deployed in H1 – a single bet on Spendbase, a SaaS cost optimisation platform backed by Google. Compare that to US$1.9m in H1 2024. Why the restraint? Selegenev cites “continued high market uncertainty”. Translation: They’re playing the long game, preserving dry powder.
Balance Sheet Bullets
TMT’s fortress fundamentals stand out:
- Zero debt
- US$5.3m cash reserves (effectively unchanged from Dec 2024)
- Administrative expenses flat at US$0.67m
This isn’t just survival mode – it’s strategic patience. With liquidity to pounce on dislocations and scale winners, TMT’s positioning screams “optionality”.
Outlook: Selectivity Amid Volatility
Selegenev’s playbook remains unchanged: “cautious investment approach” paired with readiness to “realise disposals when opportunities arise”. The portfolio’s 14.3% IRR since inception suggests this discipline works. With AI momentum countering broader VC headwinds, TMT’s tightrope walk between aggression and prudence feels apt for 2025’s uncertain script. One thing’s clear: they’re built to wait for their pitch.
