Kinnevik Results Presentation Deck
Intro
Net Asset Value
CHIEF EXECUTIVE'S REVIEW
Kinnevik's First Quarter Financials
Our Net Asset Value amounted to SEK 55.5bn or SEK 198
per share at the end of the first quarter, up by SEK 2.6bn or 5
percent from the end of 2022. The fair value of our unlisted
assets increased by SEK 1.1 bn to 29.9bn through a 1 percent
write-up and SEK 0.8bn in follow-on investments. The compa-
nies within virtual and value-based care contributed positively
on the back of continued strong performance and supportive
market multiples, whereas some of our more consumer-facing
investees experienced some incremental softness in consumer
spending causing slight downward revisions on short-term
revenue growth and thereby valuations.
Comparing the start of the quarter with its end gives the
impression of stable and positive public equity markets. Howe-
ver, volatility during the quarter was high, with continued stock
market turbulence in reaction to macroeconomic indicators
exacerbated by instability in the banking system. Broader
market indices appreciated by 15-20 percent, but this was to
a large extent driven by the large tech giants. The weighted
average share price development in our private portfolio's peer
universe was more muted at just over 10 percent.
KINNEVIK
Portfolio Overview
Dear Shareholders, in the first quarter, we made headway on our 2023 priorities. We invested signi-
ficant capital to accrete ownership in Spring Health and Agreena and financed these investments by
exiting our remaining shareholding in Teladoc - ending the quarter with a net cash position remain-
ing above SEK 10bn. The market backdrop continued to be volatile, exacerbated by distress in the
banking sector, impacting the financial ecosystem our growth companies form part of. The impact on
Kinnevik and our investees was limited, but the events serve as an important reminder of the fragility
of current markets and the importance of financial resilience in these uncertain times.
Interim Report - Q1 2023
Sustainability
While growth and venture capital markets remained slow
in the first quarter, six of our investees successfully completed
funding rounds. Three of them were led by existing investors,
and three by new investors. All funding rounds were comple-
ted at valuations around or above our assessed underlying
valuations in the previous quarter, with a headline valuation
difference of almost 50 percent on average.
Maximizing the Impact of Our Highest-Conviction Investees
We led the most recent funding round in Spring Health with
a USD 40m investment and an additional 10m secondary
purchase from an early-stage investor, stepping up our com-
mitment to one of the brightest shining stars in our portfolio.
Spring Health's ambition is to reshape mental healthcare
into treatments tailored to each individual using big data
and machine learning. The company has shown impressive
traction, growing revenue by more than 7x since our first
investment in 2021, and is funded to break-even after this
round. We are excited to support founders April Koh and
Adam Chekroud as they continue to set a new standard in
mental healthcare for employers and health plans.
Financial Statements
Other
We took the opportunity to increase our stake in Agreena
in their funding round in the quarter, basing our conviction on
the company's strong growth and the urgency of investing to
combat climate change. Since our initial investment about a
year ago, the Agreena team has exceeded our already high
expectations in their pursuit to push and support the shift
to regenerative agriculture. Soil sequestration was high-
lighted in the latest IPCC report as one of the solutions with
the highest potential to contribute towards global net zero
emissions. Combined with other benefits such as enhanced
biodiversity and better water quality, regenerative farming is
one of the most powerful levers available today in the fight
against climate change.
Reallocating Capital Within Healthcare
Funding new investments and maintaining an attractive port-
folio distribution by reallocating capital is a fundamental part
of our strategy. In the quarter, we fully exited our Teladoc
investment, the first truly significant full exit from our younger
growth portfolio, realizing a >55 percent IRR since our first
investment in Livongo six years ago. This gain alone has
financed our investments into new healthcare businesses
since 2020, including companies such as Cityblock, Spring
Health and Recursion, as well as the latest addition to our
healthcare portfolio, Enveda.
Enveda is a biotechnology company unravelling com-
pounds in nature that can be used to discover new drugs.
After quarter-end, we invested USD 25m into the business
alongside our partner fund Dimension, adding to our emer-
ging cluster of life sciences investments. Enveda was founded
by Viswa Colluru, a PhD in cellular and molecular biology who
is deeply passionate about bringing life changing drugs to
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