Analysis of Notion Capital Portfolio Companies
Note on methodology:
The following report includes data relating to valuations and growth of UK-based companies. The information is based on publicly available company filings, and may be inaccurate. Valuations are based on issued shares outstanding and share price paid. They exclude stock options and other authorized but unissued share capital. We welcome your feedback. If we made a mistake, please let us know!
Notion Capital’s published portfolio contains 19 companies registered in the UK. Focusing on the 10 most valuable companies in this set, the mean post-money valuation, based on latest filings, is £52 million (median £30 million).
The highest valued company in the portfolio is New Voice Media, a cloud contact center and inside sales platform. Founded in 1998, New Voice Media was valued at £218 million in 2016. Workable, a cloud-based recruitment platform for companies is the second most valuable company in the set, at £57 million. Coming in third is MOVE Guides, a technology provider for global mobility, with a valuation of £55 million. A data-sheet on the 19 firms can be seen here.
Year on year valuation step-ups:
Next we looked at step-ups in valuations for these companies - comparing the most recent valuations to one year prior. On average, the top ten performers roughly quadrupled their valuations (4.3x). Triptease, a marketing services company which helps hotels connect with their users, achieved the highest step-up among Notion Capital’s UK portfolio, increasing seven-fold to a valuation of £26.7 million. Panaseer, providers of security intelligence to businesses, saw a 6x increase to £5.4 million.
Categorizing the companies into three groups based on their current valuations (£0-15 million, £15-50 million, £50+ million), the average step-up for earlier stage companies valued up to £15 million, was 3.2x, while companies with valuations above £15 million had an average step-up of 2.3x. Over half (10 of 19) of Notion Capital’s UK portfolio companies doubled or more in valuation over the last year, with an average step-up across 19 firms of 2.8x.
Compared to other UK venture capital funds focusing on early stage technology investing, this increase is among the highest. The average step-up for EC1 Capital was 1.6x, for Episode 1 Ventures 1.5x and Balderton Capital 2.1x.
Speed of valuation growth:
The human resources technology platform Workable achieved a valuation of £57 million in its fourth year since inception. Adbrain, a software which allows marketers to understand and engage with their customers, achieved a valuation of £25 million, 3 years after being founded.
Interestingly, 3 of the 5 highest step-ups in Notion Capital’s UK portfolio operate in the Human Resources and Consulting sector: Workable, which saw a step-up of 3.7x over the past year, Profinda, a talent matching recruitment software, which saw a 5.4x step-up in valuation, and Apperio, a service which enables companies to manage financial dealings with law firms, which saw a 4x step-up.
With an average step-up of nearly 3x the previous years’ valuation, Notion Capital’s portfolio companies are setting an impressive pace in the early stage technology sector in the UK.
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