Flat Capital AB (publ) ("Flat") publishes its year-end report for 2024 where net asset value per share increased by +36% compared to the previous quarter to 10.92 SEK per share. The strong performance is mainly due to a number of positive value adjustments in portfolio holdings that have completed new capital rounds at updated valuations. The momentum we have seen in many of our portfolio companies during the quarter remains and we note a high interest in our portfolio companies, which are consistently highlighted as category leaders, especially within AI. During the quarter, three new investments were made, totaling 69 MSEK; approx. 49 MSEK in an 'AI portfolio' consisting of Chai Discovery, Speak, Anysphere (behind the product Cursor) and an undisclosed AI company, which accounts for approx. 70% of the invested amount. Furthermore, we have invested 11.7 MSEK in the existing holding Physical Intelligence and 8.5 MSEK in the AI company Magic. We continue to build Flat for the long term with strong confidence in our portfolio holdings and unique network.
Financial position
- Net asset value amounted to 657 940 KSEK, corresponding to 10.92 SEK per share, which represents an increase of +36% per share for the quarter, including a positive FX effect of +25 560 KSEK.
- Net cash amounted to 158 832 KSEK, corresponding to 23% of net asset value as of December 31, 2024.
The period October-December 2024
- Change in value of financial assets amounted to +127 996 KSEK (-24 384), including FX-effect of approx. +25 560 KSEK. The change in value consists mainly of holdings that have recently made capital raisings at updated valuations. This includes holdings such as. OpenAI, Perplexity, Physical Intelligence, SpaceX, xAI, whose accumulated value adjustment amounts to approx. +108 029 KSEK. In addition, the value of Klarna is adjusted by +7 170 KSEK in line with the gray market, and Flat's holding in Klarna is now valued at approx. 34 853 KSEK.
- Investments during the period amounted to 69 261 KSEK (3 203), see "Investments & divestments during quarter".
- Operating expenses for the period amounted to 2 081 KSEK (1 642) corresponding to 1,58% (1,54%) of average NAV during the period, annualized.
- Operating profit amounted to 125 915 KSEK (-26 025). The operating profit includes unrealized changes in value of 127 996 KSEK (-24 384).
- Profit after tax amounted to 127 959 KSEK (-25 527).
- Profit per share amounted to 2.44 SEK (-0.52).
The period January-December 2024
- Change in value of financial assets amounted to 108 185 KSEK (-77 921).
- Investments during the period amounted to 145 853 KSEK (61 414).
- Operating expenses for the period amounted to 6 105 KSEK (7 598) corresponding to 1,14% (2,00%) of average NAV during the period, annualized.
- Operating profit amounted to 102 080 KSEK (-85 519). The operating profit includes unrealized changes in value of 108 185 KSEK (-70 694) and realized changes in value of 0 KSEK (-7 227).
- Profit after tax amounted to 107 950 KSEK (-83 358).
- Profit per share amounted to 2.16 SEK (-2.35).
- For 2024, the Board proposes that no dividend be paid.
Significant events during the quarter
- During the quarter, a rights issue and a directed issue were carried out, which raised a net amount of 137 742 KSEK for the company, after issue costs. The rights issue was oversubscribed to 220%.
Significant events after the end of the quarter
- No significant events have occurred after the end of the quarter.
Investments & divestments during the quarter
- Three new investments were made during the quarter, which amounted to a total of 69 261 KSEK;
- Flat invested 49.0 MSEK in an 'AI portfolio' consisting of four US AI companies; Chai Discovery, Speak, Anysphere (behind the product Cursor) and a company, accounting for approx. 34.3 MSEK (70%) of the invested amount, which has not yet announced its activities, but intends to develop and launch a new AI hardware product, which Flat intends to revert back with further information. The investment was made through a so-called SPV and involves market-based management costs. For further information, see press release per 2025-01-21.
- Flat invested an additional 11.7 MSEK in the existing holding Physical Intelligence, a research company in AI and robotics, through two separate investments, where the first investment of 4.4 MSEK was the second part of the previously announced investment (press release 2024-06-11) and the second investment of 7.4 MSEK was in connection with a new capital round. Both investments were made through a so-called SPV and involve market-based management costs. For further information, see press release per 2024-12-12.
- Flat invested 8.5 MSEK in Magic, which develops advanced AI code models to automate code generation and improve AI models, with the aim of achieving secure Artificial General Intelligence "AGI". For further information, see press release per 2024-12-14.
This text has been translated using DeepL.
Link to the report on the website:
https://www.flatcapital.com/en/investor-relations/
For further information, please contact:
Hanna Andreen, CEO, hw@flatcapital.com, +46 (0) 73 353 44 66
Antonio Melani, CFO, am@flatcapital.com,+46 (0) 72 221 81 32
Certified Adviser:
Flat Capital's Certified Adviser is Augment Partners AB, info@augment.se, +46 (0) 8 604 22 55
About Flat Capital:
Flat Capital is an investment company that focuses on growth stage companies with prominent entrepreneurs in leading positions and primarily makes investments through its network of world-class investors and entrepreneurs. The company was founded in 2013 by entrepreneurs Nina and Sebastian Siemiatkowski (founders and CEOs of Milkywire and Klarna, respectively) and is led by CEO Hanna Andreen together with an experienced board of directors. Examples of portfolio companies include OpenAI, Klarna, Perplexity, SpaceX and Figma. The company aims to provide long-term capital and is essentially a passive minority shareholder, while Flat Capital's experience and network are available to the extent the entrepreneur wishes. The aim is to facilitate successful company building and enable exposure to otherwise hard-to-reach and promising companies. More information is available at www.flatcapital.com
Note: This is a non-official translation of the Swedish original text. In case of any discrepancies between the Swedish text and the English translation, the Swedish text shall prevail.
This information is information that Flat Capital AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-02-14 08:30 CET.
