Kinnevik Results Presentation Deck
Intro
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Net Asset Value
are now even more focused at hiring in different jurisdictions
to further optimize their cost base, and with valuations reset-
ting across companies in the venture and growth ecosystem,
there is a lot of movement of talent taking place.
We expect Omnipresent to move along the S-curve over
time, just as many of our successful investments have done
before them. One example of this is Budbee, where we in-
vested early on and have kept investing more capital as the
company has progressed along the curve. Since our first
investment in 2018, Budbee has grown revenue by over
30x to SEK 835m in 2021, while reaching profitability in their
underlying operations. In addition to last mile deliveries
directly to the home, Budbee has contracted 5,000 pick-up
boxes in its five markets supporting their strong growth.
Budbee is an example of how high-quality companies remain
able to raise capital at attractive terms even as markets have
softened, with the company completing a funding round of
SEK 400m during the quarter valuing the company at SEK
7.3bn. To date, our investment in Budbee has generated a
return of 4.4x times our aggregate invested capital, and 11x
our first investment in 2018.
With our diverse set of companies led by strong founders,
we also have great opportunities to draw on the experiences
from how some of our portfolio companies have coped with
rapidly changing market conditions. One such example is
Avi Meir, the founder and CEO of TravelPerk, whose strong
leadership and swift actions helped TravelPerk not only survive
when the covid pandemic hit, but to thrive as travel returned.
Read how he did it on page 15.
Assessing New Investment Opportunities
The current market environment will not only cause some
of our companies to fall off their growth trajectory, or to
fail completely. It will also cause attractive investment
opportunities to emerge both in our existing portfolio and in
new companies. Our pipeline remains vibrant, with interesting
KINNEVIK
Interim Report - Q2 2022
Portfolio Overview
Sustainability
opportunities in all focus sectors. In the first six months of
2022, we have deployed SEK 2.1bn in total, with a 37/63 per-
cent split between existing and new companies. We see a
marked difference in the pace of new funding rounds, and
we believe that this market climate benefits our ability to
identify, source and pursue long-term attractive investment
opportunities. For the full year, we still expect to invest around
SEK 5bn, and that this capital is split fairly even between
follow-on investments and new investments, and we remain
ready and able to deploy even more capital should attractive
opportunities arise during the second half of 2022.
Building Sustainable Businesses
In June, we published our first Climate Progress Report to
follow-up on the fulfilment of our annual greenhouse gas
emissions intensity target for Kinnevik's portfolio. Between
2020 and 2021, the emissions-reporting companies in
Kinnevik's portfolio have decreased their emissions intensity
by 11 percent, thus achieving our annual target of 7 percent.
The current market environment
will cause attractive investment
opportunities to emerge both
in our existing portfolio and in
new companies. Our pipeline
remains vibrant, with interesting
opportunities in all focus sectors.
Financial Statements
Other
Climate change is one of the greatest global environmental
and economic challenges of our time and we have a unique
position to influence our companies to become sustainability
leaders and align with a low-carbon future. We are proud of
the
progress made in our portfolio companies and impressed
by their ability to scale rapidly while decreasing greenhouse
gas emission intensity.
Concluding Remarks
The current market environment is driving a wedge between
companies that rose with the tide during the pandemic era
and companies that truly have the potential to be long-term
successful irrespective of the macroeconomic environment.
This is the case for the venture and growth market in general,
and it is the case for us at Kinnevik. We need to be prepared
if the pressure on valuations continues, or intensifies further,
making fundraising even more difficult.
While we remain humble in the face of the current market
environment, we are confident that over the long-term we
will come out of this downturn stronger. For two reasons.
Firstly, we believe we have been disciplined allocators of
capital and have elected to pass on, or scale down, invest-
ments at lofty valuations during 2020 and 2021. Secondly, we
believe our permanent capital base and our strong financial
position gives us the tools we need to capture as much value as
possible during a time when other investors' horizons contract.
Growth investing is not easy and requires a level of patience
and composure that few investors can stomach. It is at these
times of difficulties that the advantage and distinction of
our long-term perspective is the most valuable. To all our
shareholders that continue to place your trust with us, we
are confident your endurance will be rewarded.
Georgi Ganev
CEO of Kinnevik
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