CEO'S UPDATE

HEIN VOGEL, CEO

FY21 has been a significant year for Touch Ventures

MARKET & STRATEGY UPDATE

Coming off a strong 2021, the growth sector has seen a correction in the public markets

Late 2020 through to late 2021 saw increased valuations across public equity markets, particularly for growth and technology companies. This trend began to reverse in late 2021 as a result of changing market conditions, the prospect of increased inflation and interest rates as well as geopolitical uncertainty

200

Valuation re-rate in late 2021 / early 2022

180

160

140

120

100

80

60

40

1/01/2020

17/06/2020

2/12/2020

19/05/2021

3/11/2021

20/04/2022

S&P ASX Tech Index

Nasdaq 100

  • We have seen this correction now feeding into the private market with deal flow and opportunities slowing down in January and February of this year as investors took a moment to re-evaluate market conditions

  • Since late February, we are seeing more deal flow but execution times have increased and investment terms have moved from being founder-friendly to being more investor-friendly

  • This environment creates an opportunity for us to invest in businesses at more reasonable valuations

  • We continue to work with Block and Afterpay executives - we will continue to strengthen our relationship

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Disclaimer

Touch Ventures Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 03:13:07 UTC.