Some more notes from my research into the portfolio companies is...

Some more notes from my research into the portfolio companies is provided below. Of the "new book" I particularly like these 2 (Urbix & Liquid Instruments). Both are very advanced (relative to other VC plays) and so the line of sight to a liquidity event is easier and risk is arguably lower.

Liquid Instruments (~US$100m valuation)

PVL Investment Details:

• PVL invested $400K USD in July 2022 in the Liquid Instruments Series B round ($50m raise)
• This gives PVL 0.4% ownership of Liquid Instruments
• The sizeable investment makes this PVL's 5th largest portfolio company (by carrying value), which also reflects the later stage (further progressed) nature of Liquid Instruments
• Other investors include Acorn Capital, + strategics like Lockheed Martin Ventures, as well as Spirit Super/ANU Connect Ventures, MA Growth Ventures, Significant Capital Ventures and Boman Enterprises.

Progress:

• Liquid Instruments is an innovator and market leader in Test & Measurement instrumentation - a $20B market across legacy and rapidly growing industries like Aerospace & Defence, Automotive, Connectivity and Semiconductor.
• This is a very solid, post-revenue company progressing well (already at a ~US$100m valuation)
• Liquid Instruments is the first to develop and commercialize proprietary “Instrument-on-Chip” technology with their Moku product range.
• This software-defined, hardware-accelerated, cloud-connected instrumentation disrupts the old paradigm of heavy, expensive hardware boxes designed for single tasks.
• PVL were provided with the opportunity to invest because of their technology networks with the ANU
• Based on a TechCrunch Article, sales are up 4x in 2022 versus 2021 (400% YoY growth)

Future Outlook/Next Steps:

Liquid Instruments have a cash runway now for about 3 years. Yet, they are essentially very close to breakeven and could make themselves breakeven at any point. So this is all about execution now for them and it is a massive TAM. All of the major incumbents in this space are billion-dollar+ revenue companies. The duration to a liquidity event on Liquid Instruments should be faster than most other companies in the PVL portfolio. This investment is thus a strong juxtaposition with the "old book" of PVL investments (pre-Kruger); one has a clear line of sight to a liquidity event here versus some of the old book (pre 2020) which was hard to have a line of sight on, even in the medium term (5+ years)