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.



About Craft:

Craft is a free, open information platform mapping the Innovation Economy. We provide data on dynamic sectors, companies, teams, people and open positions. Our goal is to provide context in a rapidly changing landscape and help professionals discover and evaluate different opportunities. Our data can also be used for market research, lead generation and competitive analysis.


Sources & Notes:


  • https://craft.co

  • Notion Capital website and portfolio companies’ websites

  • Companies House Filings

  • Crunchbase

  • Note: Currency Cloud, 4th Office and Vizolution have not yet made filings for 2016. Therefore the data used for current valuations is accurate as of December 2015, and the step-up is generated using valuations from December 2014.


Track the past, present and future of companies

Adbrain
HQ
San Francisco, US
Employees
14

Adbrain powers marketers and their partners to understand and engage with their customers 1:1 across devices, channels and platforms.

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Apperio
HQ
London, GB
Employees
20↑ 6% increase

No more surprises. Intuitive software providing transparency to law firms and in-house lawyers. FT Innovation to Watch.

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MOVE Guides
HQ
Greater London, GB
Employees
143↑ 3% increase

MOVE Guides is a cloud-based platform for employee relocation and global mobility.

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Panaseer
HQ
London, GB
Employees
42↑ 3% increase

Panaseer applies advanced data science techniques to better identify, measure and mitigate cyber risk.

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ProFinda
HQ
London, GB
Employees
33

At ProFinda, we have built a unique digital view of a workforce enabling organisations to intelligently organise, connect and match people to people at work.

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Triptease
HQ
London, GB
Employees
125

Triptease is a SaaS company that builds digital tools that create better experiences and relationships between hotels and guests.

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Workable
HQ
Boston, US
Employees
228

Workable provides a cloud-based recruitment platform for companies.

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