Is SEED Innovations set for a growth spurt?
“…One of the main goals is to add to our portfolio with very positive items that will add very compelling value short and long term…”
High-end virtual gaming company Leap Gaming, while an excellent business in its own right, had become a bit of a monkey on the back of its investor company SEED Innovations.
It was a legacy asset that didn’t sit comfortably within SEED’s portfolio that is medical cannabis, wellness and health oriented. Leap has now been bought by its majority shareholder and the exit has provided SEED with circa £5 million.
The liquidity provides SEED chief executive Ed McDermott with options. He’s long telegraphed the investment opportunities the board is eyeing that compliment the existing portfolio and gives the company the edginess of investing ahead of the trend as evidenced by its advocacy and investment into clean food and fermentation enterprises.
He’s confident that some of the other assets in the current portfolio “are capable of delivering very, very good returns.” Equally he’s confident the assets to come will be just as compelling. “We’re in a really interesting market right now where we can negotiate harder, we can have more influence and really put ourselves in a position where we get excellent value on the way.”
McDermott also says alongside medium and long term portfolio management, the company will reintroduce short term gains into their strategy. “This can be anything from weeks to perhaps six months where we’ll be looking to take positions on typically smaller amounts of capital.”
Watch Ed talk to Sarah Lowther about how he believes SEED has a platform and a portfolio that is “very capable” of delivering venture capital type returns to shareholders.
Access #SEED’s corporate presentation here
Follow the company on Twitter – @SEEDInnov
The author was remunerated but does not hold shares in the company