Proven 6.5 year performance

[scotia]

I sold yesterday a holding in Proven VCT (PVN) which I purchased as a new issue in April 2016 - a 6.5 year hold.
I have carried out an XIRR calculation on the investment, both assuming that I received the 30% tax rebate on purchase, and that I received no tax rebate. The values were:-
With Initial 30% Tax rebate XIRR = 12.8%
Without Initial Tax rebate XIRR = 3.92%
PVN has been a reasonably good performer - but a good return is still heavily dependent on the tax rebate.

[HowardJones]

LTL here. (Long term lurker.)

M&S has bought the IP for Thread, which recently entered liquidation.

Price not disclosed.

The valuation of Thread was written down by £3.3 million during first half 2022.

But Thread was surely just IT algorithmic IP anyway?

Thread people positive. Their staff move over.

Curious but positive news.

[scotia]

LTL here. (Long term lurker.)

M&S has bought the IP for Thread, which recently entered liquidation.

Price not disclosed.

The valuation of Thread was written down by £3.3 million during first half 2022.

But Thread was surely just IT algorithmic IP anyway?

Thread people positive. Their staff move over.

Curious but positive news.

In the half year financial reports to 31st August 2022, Proven VCT (PVN) reported a write-down in value of £3.3 million in Thread, while Proven Growth & Income VCT (PGOO) reported a write-down in value of £4.1 million in Thread. I haven't noticed any further news from Proven concerning Thread.

[Kidman]

I am not familiar with Thread but looking at the last annual report of Thread Online (company 8226798 and owned by Thread Inc) it was loss making and asset negative. That may be a different group company to the one which owned the IP so my comments should be taken in that light.

My guess is that the holding was written down from a previous valuation such as a funding round price valuation to nil. I say nil because I suspect the IP sale and any other assets will not go far paying off the company's debts.

[scotia]

I am not familiar with Thread but looking at the last annual report of Thread Online (company 8226798 and owned by Thread Inc) it was loss making and asset negative. That may be a different group company to the one which owned the IP so my comments should be taken in that light.

My guess is that the holding was written down from a previous valuation such as a funding round price valuation to nil. I say nil because I suspect the IP sale and any other assets will not go far paying off the company's debts.

I fear you may be correct. In the Proven half year reports they still list Thread by name - but provide no valuation. But going back to the full year report of February 2022, the valuation in PVN was £3.291M and in PGOO it was £4.111M - i.e effectively the sums which have now been totally written down in the half year report to August 2022.