Investor Molten Ventures has significantly reduced its valuation of Thought Machine, impacting the fintech’s financial prospects.
- The valuation cut by Molten Ventures suggests a decrease in Thought Machine’s worth by approximately $1bn.
- The decision may affect Thought Machine’s plans for a future IPO, particularly in London.
- Despite the valuation setback, Thought Machine continues to focus on growth and transformation of the traditional banking tech sector.
- Molten Ventures still believes in Thought Machine’s potential amid uncertainties with customer contracts.
Molten Ventures, a British investor, has revised the value of its shares in Thought Machine, a fintech company based in London. The firm’s assessment indicates a notable reduction of nearly 40% in value between March and September 2024, bringing it down to £5.9 million. This adjustment translates to a decrease in the company’s valuation by about $1 billion. Such a development is a significant update for shareholders and potential investors.
The impact of this valuation reduction extends to Thought Machine’s aspirations for going public. Just last month, the company was optimistic about an Initial Public Offering (IPO) in London. Founder Paul Taylor, reinforcing London’s significance as a base, expressed enthusiasm for listing in the capital. However, recognising the influence of existing investors, Taylor highlighted that listing decisions would not be unilateral.
Thought Machine’s peak valuation reached $2.7 billion in May 2022, supported by a $160 million funding round that included Morgan Stanley. Despite current fluctuations, Molten Ventures remains supportive. They attribute the decreased valuation to delays in executing customer contracts but emphasise their confidence in Thought Machine’s future growth potential and influence in the banking technology sector.
Molten Ventures stated, “Our valuation of Thought Machine has decreased…This reflects the timing of implementing confirmed customer contracts which had not gone live at the valuation date.” The firm remains optimistic about the company, focusing on its strategic moves to attract new customers and activate significant accounts. They underline the potential of Thought Machine to revolutionise the banking industry’s tech infrastructure.
Thought Machine faces challenges with its valuation but retains the backing of investors who trust in its growth potential.
