TMT Investments NAV Rises 8.9% in 2025, Boosted by Scale AI and Portfolio Gains

• New – Spendbase (US$500,000), a SaaS subscription management and cost optimisation platform.
• New – Leasy (US$500,000), a Peruvian fintech for vehicle financing aimed at ride-hailing drivers.
• Follow-on – Rhino (US$400,000), armoured car rides in Latin America.
• Follow-on – Global Work AI (US$129,000), AI-powered freelance job sourcing.

Where the portfolio stumbled: write-downs in nine holdings

TMT continues to mark assets prudently. Nine names were written down, totalling US$8,254,351:

• Backblaze – US$2,345,704 (-13%) based on US$4.66 share price at year-end, inclusive of the US$3.8 million partial disposal proceeds.
• Mobilo (Lulu Systems) – US$1,211,100 (-64%) reflecting market challenges.
• SOAX – US$1,000,000 (-25%) on TMT’s estimate of likely current valuation.
• MTL Financial (Outfund) – US$959,540 (-63%) due to a merger transaction.
• Prodly – US$900,000 (-50%) on market headwinds.
• Sonic Jobs – US$676,869 (-76%) on a new equity round.
• Aurabeat – US$515,000 (-100%), prospects unclear.
• Qumata – US$454,706 (-100%), repositioning judged unlikely.
• Go X – US$175,000 (-100%), lack of information and unclear prospects.

It is also worth noting the portfolio’s valuation mix: Level 3 assets at US$163.0 million are the largest component, so ongoing revaluations – up and down – remain part of the journey.

Operational updates from the big five holdings

• Bolt – double-digit revenue growth, >800 cities, EBIT positive.
• Backblaze – revenue up 14%, adjusted EBITDA positive.
• 3S Money – double-digit revenue growth, EBITDA positive.
• Scentbird – double-digit revenue growth, net profit positive.
• PandaDoc – double-digit revenue growth, over 65,000 customers, single-digit negative EBITDA margin.

Balance sheet, cash, and audit

No financial debt, cash and equivalents of US$5.0 million at 31 December 2025 and US$6.2 million as of 23 March 2026 (unaudited). Administrative expenses were stable at US$1.44 million. The auditor issued an unqualified opinion and flagged no going concern issues. No final dividend was recommended. The AGM will be held on 19 May 2026 in St Helier, Jersey at 14:30 (BST).

What this means for shareholders

Positives

• Clear NAV progress (+8.9%) in a muted venture market.
• Real cash back from disposals and a Scale AI dividend; more realised post-period.
• Buyback at a 60%+ NAV discount is value-accretive.
• Top holdings showing profitable or near-profitable operating profiles.
• No debt and steady costs give flexibility to weather volatility.

Watch-outs

• Write-downs across nine holdings underline the binary nature of early-stage assets.
• Level 3 valuations (US$163.0 million) carry inherent estimation risk.
• IRR since inception eased to 14% (from 14.5%).
• No dividend; returns rely on NAV growth and realisations.

Jargon buster

• NAV per share – total assets minus liabilities, divided by shares in issue; a snapshot of intrinsic value.
• IRR – internal rate of return since inception; the annualised return including realised and unrealised gains.
• SAFE – Simple Agreement for Future Equity; converts into shares on a future trigger event.
• Convertible note – a loan that can convert into equity, usually at a discount or with a valuation cap.
• Level 1/2/3 – fair value hierarchy. Level 1 uses market prices, Level 2 uses observable comparables, Level 3 uses unobservable inputs (most subjective).

My take

This is a credible year from TMT. The combination of selective exits at sensible prices, a sizeable uplift from AI exposure, and a meaningful buyback at a steep discount all work in shareholders’ favour. The other side of the ledger – nine write-downs and heavy Level 3 exposure – is the standard price of fishing in early-stage waters.

If the discount to NAV persists and management keeps recycling capital via exits, buybacks and disciplined deployment, there is room for further value creation. Keep an eye on additional realisations, any fresh AI-driven step-ups, and whether the upbeat operating trends at the top holdings translate into more cash events through 2026.