Disclaimer: This article is sponsored by IP Group.

This article is for informational purposes only, it should not be considered financial advice. Investing in early stage venture involves substantial risk. Always consult a qualified financial advisor before making any investment decisions. Full disclaimers below.

In yesterday’s article, we unpacked how to read and analyse venture-style listed investment companies like IP Group — and why Net Asset Value (NAV), not earnings, is the true signal. Today, IP Group’s full-year results for 2024 landed, and they offer a textbook case study of the principles we laid out.

Haven’t read part one? Check it out here — it’s your guide for decoding investment vehicles that play in the high-stakes world of science, innovation, and venture capital.

Now, let’s take that theory for a spin and walk through what IP Group’s FY24 numbers really tell us.

NAV Dropped, But the Exit Machine Was Roaring

IP Group reported a 15% drop in NAV per share to 97.7p, down from 114.8p at the end of 2023. Total NAV came in at £952.5 million, compared to £1.19 billion the year before.

That sounds tough, right? But here’s where understanding venture-style metrics pays off.

Behind the headline NAV drop was a record year for exits. Cash proceeds from realisations hit £183.4 million — a massive 375% increase from 2023. It was the most active exit year in the company’s history, led by:

• £134m from the sale of Featurespace to Visa – the Group’s largest ever exit
• £30m from the sale of Garrison Technology to Everfox
• £9.2m from the sale of Kynos Therapeutics to Dr Falk Pharma
• Up to £15m from secondary sales in six portfolio companies, all at a small premium to NAV

That’s what success looks like in this game: turning paper valuations into cash.

Why NAV Fell Despite Record Exits

NAV per share took a hit mainly due to mark-downs in three key areas:

• Oxford Nanopore Technologies (ONT): Market value declined, reducing the fair value of IP Group’s largest listed holding
• Istesso: Despite promising data on secondary endpoints, its Phase 2b trial didn’t meet its primary endpoint
• First Light Fusion: Repositioned business model and revalued in line with market conditions

In a venture portfolio, where valuations move with sentiment and science milestones, this volatility is part of the deal. Exits create tangible wins, while valuation shifts affect NAV.

A Strengthened Balance Sheet and Buyback Firepower

IP Group now has £285.6 million in gross cash and deposits, up 26% year-on-year. That’s a lot of dry powder — not just for new deals, but for capital returns.

The Group completed £30 million of share buybacks in 2024 and is on track to hit £80 million. Over 10% of share capital has already been retired, and this morning they announced:

• A further £10 million extension to the programme
• A new policy to allocate 50% of 2025 exit proceeds to buybacks

If you’re tracking NAV discounts, this is huge. It’s one of the clearest signals yet that IP Group sees its shares as undervalued — and is willing to back that view with capital.

Capital Deployment: Disciplined, But Active

IP Group invested £63 million across 38 companies in FY24, with a strong focus on existing winners and capital-efficient bets. Highlights include:

• Hysata: Completed a $111m Series B — the largest cleantech Series B in Australian history
• Genomics and Enterprise Therapeutics: Closed major funding rounds
• 4 companies (Storm, Mission, Kynos, Abliva): Reported positive clinical trial data
• AI computing plays like Instrisic and Lumai: Noted as areas of strong third-party interest

The portfolio is showing momentum in both life sciences and deeptech, even as the wider venture market remains subdued.

Overhead Cuts: Running Leaner

One subtle but important shift — total net overheads fell by 12%, with the run rate cut by 23% by year-end. That matters because internal costs directly impact NAV.

For long-term investors, it signals discipline: this is a team managing capital with a sharper focus.

Looking Ahead: IPO Pipelines and 2025 Goals

There are some juicy post-period updates too:

• Hinge Health has filed for a New York IPO, potentially creating another major liquidity event
• IP Group reaffirmed confidence in delivering £250m+ of exits from private companies by 2027
• Cash position remains strong at £277 million as of March 21, with an additional £24.7 million of proceeds already banked this year

NAV volatility might grab headlines, but this pipeline shows the real story is far from over.

Final Thoughts: This Is the Playbook in Action

IP Group’s FY24 results are a near-perfect case study of the mechanics we broke down yesterday. Here’s what we’re seeing:

• NAV fell, but that’s not the full story
• Cash exits were the strongest in company history
• Balance sheet strength enables further share buybacks
• Portfolio discipline is yielding results, even in a tough macro backdrop

If you’re analysing listed venture-style companies, this is what it looks like when the strategy starts to mature. The NAV might wobble quarter-to-quarter — but  cash can tell its own story.

To stay plugged in on IP Group and other venture-stage investment vehicles, visit www.curationconnect.com. You’ll find deeper insights, curated data, and real-time updates on where NAV, exits, and innovation intersect.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.

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