VC firm reduces stake in IrishVR business

AN Irish-backed investment firm has sold part of its stake in Waterford tech business VR Education.

Sure Valley Ventures said it has recouped the value of its original investment in the Irish company, but has retained shares equivalent to a 4.38pc stake in VR Education. It said the Irish company has significant growth potential.

The sale by Sure Valley of more than 3.3 million shares will result in gross proceeds of just over £522,000 (€577,000). The remaining stake in VR Education is worth about £1.8m (€1.99m).

VR’s share price is currently about 465pc more than the price at which Sure Valley Ventures made its initial investment in the Irish firm in 2019.

Waterford-based VR Education develops virtual reality training and education platforms. It was founded by Sandra Whelan and David Whelan.

‘Irish company has major opportunity to achieve significant growth’

The company raised almost €7m when it listed its shares in London and Dublin in 2018.

It recently announced that global tech firm HTC has agreed to invest €3m in the business and enter into a strategic partnership for the distribution and licensing of its Engage platform through HTC.

HTC’s investment in VR Education gave it a 20pc stake in the firm.

Sure Valley Ventures is an entrepreneur-led venture capital fund focused on investing in the software technology sector with a specific focus on artificial intelligence, the internet of things and augmented and virtual reality.

Sure Valley partner Gareth Burchell said the strategic investment from HTC “adds validity” to the technology that has been developed by VR Education.

He added that Sure Valley believes the Irish company has a “major opportunity to achieve significant growth”.

Releasing full-year results last week, VR Education said that its revenue rose 43pc to €1m.

Its earnings before interest tax, depreciation and amortisation (ebitda) loss was €1.4m, which it said was in line with expectations.