This tech investment company is in bargain basement territory

TMT Investments’ (TMT:$2.24) portfolio of more than 50 high-growth, internet-based businesses benefited from significant positive currency movements last year, a major factor behind the growth in the venture capital company’s net asset value (NAV).

There was also an increased divergence between its stronger and weaker performers. Despite the ongoing challenges in the macroeconomic and political environment in 2025 (which marked the fourth consecutive “stress year” for the venture capital industry following the tech market correction in early 2022), investors have continued to back fast-growing, high-quality digital technology companies, especially in the popular AI segment, albeit at more subdued levels.

For instance, data-labelling company Scale AI received a new investment from Meta Platforms (US:META) that valued the business at more than $29bn (£22bn) and enabled TMT to book a 138 per cent valuation uplift ($0.7mn) on its shareholding. In total, seven portfolio companies benefited from $23.8mn of positive revaluations, which more than offset $8.3mn of partial or full writedowns on nine investments.

The largest gain ($11.3mn) was on TMT’s shareholding in Bolt (pictured), an international taxi and food delivery group that could IPO on Nasdaq this year, subject to suitable market conditions. The investment was marked up 17 per cent in value to $78.1mn (248¢) following a part disposal and is now worth 12 per cent more than TMT’s market capitalisation of $69.4mn. This means the rest of TMT’s portfolio is in the price for free, even though the company holds $5mn of cash and a listed stake in Nasdaq-quoted cloud storage company Backblaze (US:BLZE) that has a value of $9.8mn at current market prices (23 March).

Valuing TMT’s equity on a 69 per cent discount to book value is incredibly harsh for a company which has delivered an internal rate of return of 14.5 per cent since inception. The share price discount to NAV is even more anomalous given that a likely liquidity event for Bolt should release a substantial cash windfall for TMT’s shareholders.

I included the shares (at 285¢) in my 2023 Bargain Shares Portfolio and TMT’s share price increased almost 50 per cent in the following 12 months, although it is now trading below that entry point. Bottom fishers should be well rewarded. Buy.

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