(Alliance News) - The board of directors of LVenture Group Spa on Thursday approved results for the first half of the year reporting a total value of the investment portfolio of EUR29.1 million, down 2 percent from EUR29.9 million recorded as of Dec. 31, 2022.

The half-year ended with a loss of EUR2.0 million, which compares with a loss of EUR600,000 as of June 30, 2022.

Revenues and other income amounted to EUR2.9 million compared to EUR3.5 million as of June 30, 2022. In this regard, however, the company points out that EUR400,000, related to Innovation & Corporate Venturing activities disbursed under two public tenders is not yet recognized as revenue pending official recognition by the relevant bodies, which is expected in the second half of the year.

During the first half of 2023, the company finalized investment transactions of EUR500,000, which compares with EUR1.2 million as of June 30, 20220, and carried out an exit transaction of EUR400,000, in line with the same period of the previous year.

Ebitda was negative EUR1.5 million from negative EUR600,000 in the first half of 2022.

As of June 30, net debt was EUR4.9 million, which compares with EUR4.7 million as of Dec. 31, 2022.

Shareholders' equity was EUR23.9 million, down 8 percent from EUR25.9 million as of Dec. 31, 2022.

In the first months of the year, the company points out in a note, "Italian venture capital has slowed down, registering a contraction of 16 percent in terms of volume and 69 percent in terms of value compared to the same period of the previous year."

"In the second half of the year, institutional support will be crucial, particularly PNRR resources earmarked for the energy and digital transition. This liquidity will be crucial to sustain deal volume and provide further momentum to this market with the aim of accelerating its growth. In this context, LVenture will pursue a disciplined financial strategy to balance operational management, business growth, investment and operating costs."

With this in mind, LVenture Group will continue "portfolio enhancement activities, with particular reference to Star startups," and will continue "to operate in the development of Innovation & Corporate Venturing activities, with a view to realizing growing revenues, in line with the objectives set."

Luigi Capello, CEO of LVenture Group commented, "The venture capital market in the first half of 2023 has slowed down, both in terms of volume and value, mainly due to the absence of "mega-rounds." Against this challenging backdrop, the company continued to work to support the enhancement of portfolio startups, particularly "Star" startups, with major capital increase transactions closed subsequent to the first half of the year and realizing one exit during the period. Operationally, revenues were at the previous year's level, taking into account some revenues from public calls not yet accounted for. The venture capital market in the second half of the year is expected to evolve positively, and the merger deal with Digital Magics aims to create a leading operator at the national level and with the size and assets to compete internationally."

LVenture Group on Thursday closed up 5.0 percent at EUR0.33 per share.

By Chiara Bruschi, Alliance News reporter

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