Newsletter
March 2022
Image Conscious
Pembroke invests in Cydar, AI Maps for image guided surgery
Also in this issue:
• Popsa completes £9m fundraise
• New investments into TALA and Annie Mals • Troubadour becomes a certified B Corp
Plus highlights from the portfolio, including: Thriva • HotelMap • LYMA • COAT • and more...
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Pembroke VCT
Contents New Investments Cydar ����������������������������������������������������� 3 TALA ����������������������������������������������������� 4 Annie Mals �������������������������������������������� 4 Portfolio Highlights Secret Food Tours ������������������������������ 5
HotelMap ��������������������������������������������� 5 Popsa ���������������������������������������������������� 6 Troubadour �������������������������������������������7 Hackney Gelato ������������������������������������7 Kat Maconie ����������������������������������������� 8 Bella Freud ������������������������������������������� 8
Welcome Pembroke VCT is now a £180 million fund with a maturing portfolio of over 40 growth-stage companies. In the 12 months to December 2021, we are proud to have increased our total return from 127.2p to 148.3p per share, as well increased our NAV by +10.1p to 123.3p per share. We are also excited to be backing the next chapter of growth for exceptional entrepreneurs in our portfolio, continuing with our stepping-stone investment philosophy, completing 17 follow-on investments (totalling £20 million) and 7 new company investments (totalling £8.7 million). Having launched our offer in September 2021, we have raised £35 million (as of 16 March 2022) out of our £60 million target, with just under one month to go before the end of the tax year. In this issue, we would like to tell you about our new £3 million investment into the fascinating surgical software company Cydar Medical, in addition to welcoming TALA and Annie Mals to the portfolio. We will also give you an update on how the rest of our portfolio has been performing, with exciting news from Secret Food Tours, Popsa, Troubadour and more.
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Credentially ������������������������������������������ 9 Thriva ��������������������������������������������������� 9 COAT ������������������������������������������������� 10. LYMA �������������������������������������������������� 10 Dropless �����������������������������������������������11 Peckwater ���������������������������������������������11
New investments
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When we met Tom Carrell we were hugely impressed with his desire to develop a product that resulted in better patient outcomes. Working as an endovascular surgeon and seeking to solve a problem he encountered every day, Tom developed software to help carry out complex medical procedures, delivering results for both surgeons and patients alike. Under Tom’s leadership, Cydar has significantly scaled its team and is operational in 26 hospitals and we are excited about the growth prospects and opportunities that lie ahead.
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At Cydar, we have been on a mission to harness the power of cloud computing, computer vision and machine learning to improve the planning, guidance and outcome analysis of surgery. Our first product is bringing clinical benefits today to our rapidly expanding customer base in six countries. We are very pleased to partner with Pembroke VCT at this exciting stage as we scale up to realise our long‑term vision to improve the outcomes of image‑guided surgery for everyone. Tom Carrell Executive Director and Co-Founder
Pembroke invests £3m into surgical software company Cydar Medical
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Andrew Wolfson CEO of Pembroke
The first product from Cydar’s Intelligent Maps system, Cydar EV Maps, aids in the planning, guiding and review of endovascular surgery using the latest in-cloud computing, computer-vision and machine-learning technology. The Intelligent Maps system generates a 3D model of the surgical plan as well as enhanced, adaptable intra‑operative visualisation to simplify the workflow for clinicians. The software, which has been used in the treatment of over 2,000 patients, has proven to reduce procedure time by 20% and radiation exposure for clinical staff and patients by 50%, as well as improve clinical outcomes and cost effectiveness of care.
The ‘sat nav’ for endovascular surgeons We have made an initial investment of £3 million into Cydar Medical, the surgical augmented intelligence company using software to revolutionise every stage of image-guided minimally invasive surgery. Cydar was launched in 2012 by founders Tom Carrell, a vascular surgeon and Greame Penney, an imaging scientist, having both recognised the difficulty surgeons experience when performing image guided procedures and the resulting inconsistency of patient care. They combined their expertise to develop Cydar Intelligent Maps, with the aim of advancing surgical care and in‑theatre visualisation and decision making via one intuitive cloud-based platform. The team has accelerated product development and evolved its go-to-market strategy by securing a range of commercial partnerships, such as that announced with Philips, the leading OEM, in January 2022.
Pembroke’s investment will contribute toward significant hires across the Operations, Science, Research and Development, Commercial and Marketing teams to support business growth. The investment will also be used toward installation costs and to support customer service, as the software is adopted across further sites globally and will support development of further products from the platform. 3
TALA, the sustainable activewear brand founded by fitness entrepreneur Grace Beverley Pembroke participated in the £4.2 million fundraise, co-led by Active Partners and Venrex to bring sustainable activewear to the masses. The investment will be used to further TALA’s mission of bringing sustainable activewear into the mainstream, investing in inventory, hiring and international growth. As the sustainable fashion movement continues to thrive worldwide, one area of the market has gone significantly underserved: activewear. The options for conscious consumption of activewear typically leave much to be desired, with consumers forced to choose between affordability, performance, design and sustainability. But as consumer trends around fashion, fitness and sustainability continue to evolve, and with the global activewear market expected to be worth nearly $547 billion by 2024, the potential is vast. Founded in London in 2019, TALA is on a mission to bring sustainability to as many people as possible, offering a range of stylish, high-performance and sustainable activewear at a competitive price point. TALA’s hugely popular product range includes leggings, shorts, sports bras, tops, hoodies, tracksuits, outerwear, underwear and more. TALA’s products and packaging are made with upcycled, recycled and natural materials, and the brand has a strong focus on ethics, sustainability and transparency at every stage of production.
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TALA is a labour of love. I founded the business out of a genuine passion to help as many people as possible to shop more sustainably, without compromising on quality or price. I’m incredibly proud of – and grateful for – the amazing community we’ve built in the past two and a half years, and I cannot wait to see what we can achieve as we continue to grow our TALA community around the world.
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Grace Beverley CEO and Founder of TALA
of severe epilepsy and partial sight into a remarkable call to action. During her time volunteering in hospitals and reading to young children she recognised a need for educational resources that address contemporary issues. Each story in the Annie Mals series features a protagonist animal that confronts and overcomes a problem, such as Freddie the Jellyfish who is struggling to survive in a sea contaminated by plastic. This story, the first in the series of illustrated books, will be published in June. Annie Mals has received positive feedback from publishers and has already secured an offer from Purple Mash, the publishing arm of 2Simple Ltd, an award-winning provider of digital resources for UK primary schools.
Educational publishing helping children to deal with contemporary issues We have invested £500k into Annie Mals, a children’s education brand launching its maiden offering, a series of books devised to give children confidence to engage with contemporary issues, such as mental health, diversity and introversion.
Annie Mals plans to develop its book series into a multimedia offering. Following the publication of the first three books, the company will be licensing its characters for television animation and short-form YouTube content with toys, clothing and accessories also in the pipeline.
Annie Mals was founded by award-winning charity fundraiser Emily Samuels. She was inspired to create Annie Mals after turning her own life-changing problems 4
Portfolio highlights
At the start of the pandemic, Secret Food Tours and HotelMap both had to mothball, preserve their cash and wait until the world opened up again
During the pandemic, we wrote down the value of Secret Food Tours by 50% and we are now at a stage where it’s back up to its cost value. We are thrilled to report that the business is back to pre-covid levels. Bookings are increasing in 2022 and the business recently had its best week since the start of the pandemic, and there is no sign of it slowing down.
The pandemic has created significant scaling opportunities for HotelMap. The company spent much of the past 18 months building a SaaS version of the HotelMap platform which is now being licensed by companies that, pre-pandemic, would have been considered competitors.
The business’ philosophy previously was to open in as many cities as it possibly could. Having reviewed and refined its strategy, its model has become significantly more efficient, now only concentrating in cities that are proven to be successful.
The HotelMap platform is now the largest and most sophisticated network and application for managing complex large-scale hotel booking transactions. It is a powerful technology for any corporate travel agency, conference and trade show organiser, large company, event venue, or convention bureau wishing to modernise group and event hotel booking – achieving more with less human resource through HotelMap’s numerous automated processes.
Secret Food Tours has reopened the majority of food tours in 60 cities worldwide. The founders are working on a new line of themed tours, including the British Museum tour. The business has also partnered with a number of international parties which will be revealed later this year. 5
Popsa is a user-friendly mobile app which uses AI to help users rapidly design photo-centric products, such as photobooks, and have them delivered to their door. Led by founders Liam Houghton and Tom Cohen, Popsa has demonstrated excellent growth since inception, ranking in the top-10 fastest growing UK tech companies for the last two years according to Deloitte.
This investment will help us expand Popsa’s presence internationally and deepen our understanding of the wealth of data in photos. This will help us further differentiate ourselves from the established players in the space as we return this value to our customers through intelligent curation and editorial suggestions. We are delighted to welcome Tom and Gresham House Ventures into the Popsa family and it is particularly pleasing to know we have the continued support of our current investors - Pembroke, Octopus and Guinness - who have all invested for a fourth time. This record is something we are incredibly proud of and it is a real testament to the work we are doing here at Popsa. Liam Houghton CEO of Popsa
This significant fundraise will increase funding to the data science and technology team at Popsa, as the business looks to further advance features and product development, as well as bolster sales and marketing. This supports the business’ aim of scaling the brand, particularly in its key geographies (US, Germany, France and UK). The tech business was just ranked as the 16th fastest growing company of any kind in 2022 by the FT in its list of Europe’s Fastest Growing Companies. 6
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Popsa, the European leader in AI-driven photo-based e-commerce, has completed a £9 million fundraise, led by Gresham House Ventures, with Pembroke investing further in the round in line with our stepping-stone investment approach.
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Popsa completes £9m fundraise
Troubadour becomes a certified B Corp Troubadour’s commitment to environmental sustainability has been core to the business since the founders, Abel Samet and Samuel Bail, started the company. Abel and Sam believe business should be a force for good and that Troubadour’s actions are critical to making the world better. B Corp UK Certification is administered independently by Standards Analysts at the non-profit B Lab. The impact assessment is rigorous and detailed. It scores a business in the areas of environment, governance, workers, community, and customers. On minimising environmental impact, for example, these are a few of the things Troubadour is doing: Making great products with the least possible impact on our planet. To minimise Troubadour’s environmental impact, it makes products that last, and repairs them if things break. Recycled materials are used where possible – 88% of products by volume are made from recycled materials – such as fabrics made from recycled plastic. Troubadour has offset 100% of its carbon emissions from shipping, and the London store is powered by 100% renewable energy. All packaging is recyclable and compostable, and 85% of it is made from recycled materials – it aims to make this 100% next year.
The business extended its Waitrose listing from a small (22 store) London listing to a National (+150 store) listing in January 2022. This complements the business’ reach through Tesco, Ocado and over 500 independent foodservice and retail outlets. Hackney Gelato is now also the number-one rated gelato in Ocado and number‑five rated of all ice cream brands. For a business with a restaurant only strategy until the end of 2019, we think the management team has done a remarkable job. Hackney Gelato has launched on Getir, an ultra-fast convenience delivery service. This will see them listed across London via 75 virtual warehouses. The business will also double its capacity in February with the arrival and commissioning of new machinery for its kitchen. The centre piece is a three-lane rotary filler that will automate the filling process for its grocery and on-the-go formats, allowing them to service increased demand. 7
Kat Maconie’s e-commerce sales have increased by over 100% each year for the past three years and the same level of growth is planned for 2022. The brand has been establishing strong partnerships with two of USA’s leading luxury department stores, Nordstrom and Neiman Marcus. As the AW22 selling season draws to a close, 2022 wholesale revenue has been the strongest to date, despite the pandemic affecting buyers’ global budgets. Kat Maconie’s digital presence continues to grow at a fast rate with over 300k followers on Instagram and a rapidly growing Tiktok following. The brand is launching its new jewellery line next month. The range has been purchased by a number of leading department stores and e-stores and Kat Maconie plans to sell the line on its own online site. Kat Maconie Bridal is launching in April, transforming the back of its retail store into a Bridal shoe boutique.
For the latter half of 2021, Bella Freud focused heavily on customer acquisition and the overall customer journey, paying close attention to its product offering and the way in which it markets different product lines. Bella Freud has a very wide converting demographic, meaning it can service a customer throughout their life. A key focus has been the review of pricing, ensuring the business has strong entry, middle and exit price products to fulfil the demands of each consumer and to encourage repeat purchases. Over the last year, Bella Freud has grown its revenue across all channels. The growth in direct-to-consumer business has given the team the confidence they need to push into new territories and further expand their product range.
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Driving health confidence into the hands of the consumer Preventive health company Thriva Health featured in seventh place in the FT’s list of Europe’s Fastest Growing Companies, as the business which enables a future of global healthcare beyond the hospital and the clinic, providing clinically relevant tests available at home. Thriva is on a mission to increase the world’s health confidence and to improve how much time we spend in good health. Thriva has become the UK leader in remote diagnostics and preventative health. The team is creating a global ecosystem of clinically evidenced tools and insights to allow people to proactively monitor their health, and institutions to perform better for our health. Thriva not only supports customers directly but also third-party partners including the UKHSA, NHS, insurance providers and private health providers.
An exceptional year of revenue growth Credentially has had an exceptional year since Pembroke’s investment, having grown revenues 3x over the past 12 months, achieving an extraordinary 120% net revenue retention. In the largest market for its product, the United States, Credentially has secured a top 10 healthcare recruitment agency as a client. In addition to the US, Credentially has now secured clients in Canada, France and the Republic of Ireland, demonstrating the global demand for streamlined clinical credentialing solutions, and the global applicability of its product.
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New Year, New Hue COAT has added some exciting new colours to its curated palette, developed using customer data, the design community and COAT colour expertise – making sure decorators are always on trend.
COAT continues to grow rapidly, posting record month-onmonth sales. The COAT community continues to build and customers are loving the new paint buying experience. COAT has now launched its virtual colour consultation service. So if you’re not sure where to turn with your next scheme, give the COAT team and shout and let its colour consultants level up your interior.
New shades include:
• The Posh Seats
Live your best life with this energising teal.
• The Trail
No need for long distances, this green grey is an ideal hike.
• Cold Brew
Roasted perfectly and chilled to perfection. A full-bodied taupe.
To celebrate David Attenborough’s new series ‘The Green Planet’ COAT released a limited edition chartreuse green called ‘Plant Power’, supporting the World Land Trust with every sale.
Since being recognised as one of the world’s most innovative beauty companies of 2021 by Fast Company, LYMA starts 2022 at the forefront of the emerging multi-billion dollar WellTech industry. Capitalizing on the post-pandemic mood, to seize the moment it has launched new campaigns featuring model and photographer, Laura Bailey, polar explorer, Inge Solheim and poet Luke Smith. LYMA opened its Marylebone HQ in Q4 2021 and has since doubled its headcount to support the development of new products and further extended its regional footprint. 2022 will be an exciting year. The world has changed and LYMA has changed with it. 10
Dropless has recently launched its Hydroloop service, the UK’s first mobile and closed-loop water reclamation system that enables sustainable HGV-fleet washing at speed and at scale. Hydroloop is currently being used at Heathrow Terminal 5 by Sixt with expansion opportunities across airports and other large fleet partners across the UK. Since its humble beginnings as a small car wash company, the company has seen huge opportunity to innovate more broadly across the vehicle care and maintenance space. As Dropless’ technology has developed, it has fast become a data-driven vehicle-care company focussing on delivering sustainable and ethically delivered mobile services to fleets and consumers via its platform and app. The business’ ability to regularly collect and utilise vehicle data sets them apart from other players within the fragmented and archaic market. The integration of the digital platform into the 1Link system to provide MOT & Services through a network of 5,000 UK garages, enables the full end‑to‑end car-care experience and finally solves the issues faced by fleets and consumers worldwide.
Peckwater Brands has experienced a great deal of growth this year already. Not only has the team grown from 8 to 40, it has also seen its UK Gross Merchandise Value (GMV) rise from £300,000 to over £500,000 per month. Adding to this success, Peckwater Brands has officially onboarded its first software-as-a-service (SaaS) client. The business is also expanding internationally and has established a US team, based in Miami, with the first site due to go live in March. We are also delighted to report that Peckwater Brands has taken over management of NKD Pizza, an international pizza brand that has six sites across Abu Dhabi and Dubai. The opportunity arose via a joint venture with NKD Pizza’s brand owners, GSP Capital. This is the first phase of Peckwater Brands’ international expansion strategy as the team introduce a wider portfolio of virtual brands to the United Arab Emirates and beyond, so watch this space! 11
Important information and disclaimer: This document is issued by Pembroke Investment Managers LLP (“Pembroke”), a limited liability partnership incorporated in England and Wales with registered number OC379193 of 3 Cadogan Gate, London SW1X 0AS. Pembroke is authorised and regulated in the conduct of its business by the Financial Conduct Authority. Pembroke has prepared and approved this document and the information herein as a “financial promotion” for the purposes of the Financial Services and Markets Act 2000 for persons reasonably believed by Pembroke to be of the kind to whom it is permitted to communicate financial promotions. This document has not been approved by any relevant regulatory authority and does not constitute an offer or invitation in respect of the sale or purchase of securities in any jurisdiction, or of any of the businesses or assets described herein. No offer to sell investments is being made on the basis of the information contained in this document. Before investing, (prospective) investors should read the relevant prospectus and/or key information document, available from www.pembrokevct.com as these documents contain important information about any offer, including charges, tax and specific risk warnings.
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