Molten Ventures has significantly reduced the valuation of Thought Machine, a notable player in the fintech sector, highlighting a one billion dollar decrease.
- The investor’s half-year results reveal a notable valuation drop in Thought Machine shares, decreasing by nearly 40% between March and September 2024.
- The decrease in valuation could potentially impact Thought Machine’s plans for a London IPO, as the company had recently expressed intentions to go public.
- Despite the valuation cut, investor confidence remains, with potential growth opportunities cited in future customer engagement and market expansion.
- The initial high valuation of $2.7bn achieved in May 2022, backed by substantial investment, reflects the company’s ambitious growth trajectory.
Molten Ventures has revised its valuation of Thought Machine, reducing it by one billion dollars, as revealed in its half-year results. The valuation of Thought Machine’s shares experienced a notable decline of nearly 40% from March to September 2024, reflecting broader market pressures.
The adjustment in valuation comes at a critical time when Thought Machine has expressed ambitions to list on the London Stock Exchange. In recent communications, founder Paul Taylor affirmed the company’s commitment to a London IPO, emphasising London’s significance as a potential listing venue. However, he acknowledged that investor influence and market conditions would play a crucial role in this decision.
Thought Machine had previously achieved a significant valuation milestone in May 2022, reaching $2.7 billion following a successful funding round. This valuation was bolstered by investments from major institutional players such as Morgan Stanley, indicating strong market confidence at the time.
Molten Ventures attributed the valuation reduction to uncompleted customer contracts, though it maintained a positive outlook on the company’s future. The firm highlighted Thought Machine’s ongoing efforts to bring new customer accounts live, suggesting potential for growth despite current valuation challenges.
Despite the downturn, Molten Ventures remains optimistic about Thought Machine’s prospects, underlining the fintech’s potential to revolutionise the traditional banking sector’s technology framework.
Thought Machine faces valuation challenges, but growth potential remains strong.
