TMT Investments: Additional Investment and Successful Divestment

TMT Investments has made an additional investment in global real-time bidding mobile ad network company Adinch as part of a $3m equity fundraising. The venture capitalist - which invests in high-growth, internet-based companies - has also sold its stake in The One-Page Company at a price that represents an Internal Rate of Return (IRR) of 32%. We are particularly pleased by this high rate of return as it demonstrates TMT’s ability to identify attractive investments. We are also encouraged by the latest fundraising as not only does it provide additional firepower for the company’s future growth, but it also demonstrates an important vote of confidence in the business. Furthermore, the current equity placing was conducted at a higher valuation of $9m, thereby increasing TMT’s original investment by 80% or $800k. Accordingly, for those looking for exposure to high-growth companies within the internet space, we continue to recommend TMT as one to watch.

Investment In Adinch

As part of the current $3m equity fundraising, TMT has maintained its 20% stake in the business by investing a further $600k. In February 2013, TMT had originally invested $1m, implying a pre-money valuation of $4m. Adinch uses big data to deliver precision-targeted advertising campaigns worldwide. It provides its customers with an effective and efficient offering to reach mobile users in North America, Europe, the CIS and other regions. Buyers use the Adinch platform to manage their advertising spending, simplify campaign tracking and obtain actionable insights into their audiences. Using Adinch, clients receive instant access to >200b monthly ad impressions in 230 countries, on 200k mobile apps and mobile websites. According to eMarketer, the global mobile advertising market is expected to grow by a CAGR of 49% during the period 2013-2018 to reach $95 billion.

Disposal of The One-Page Company Investment

The total amount received by TMT Investments is $510k. This compares to its original investment in February 2012 of $250k.

Conclusion

For those looking for exposure to high-growth companies within the internet space, we recommend the company as one to watch. The main risk for TMT Investment is the high failure rate of early-stage businesses, but we feel that this risk is reduced by the large number of investments it has made. Furthermore, we note that the success of just one of these companies could result in a significant increase in its valuation.