Sorry for the delay with this one.
Here's the transcript for yesterday's chat with Vection Technologies Executive Director Lorenzo Biagi.
VR1 Transcript.pdf
My thoughts:
The tech is cool, at least in terms of its potential. But looking at some of the examples on their website (especially the AI avatars, which have a very “uncanny valley” vibe), it seems a far cry from those any Minority Report like experiences. That doesn’t make it not valuable or useful, but it’s worth tempering expectations around what the end product actually looks like.
Another concern is that they seem to be lacking focus and are trying to apply the tech anywhere and everywhere. Lorenzo even said they “never say no,” which, as a general rule, isn’t ideal. They do have vertical teams in areas like defence, manufacturing, retail, and education, but it’s still a very broad remit for a company of their size. The risk is spreading themselves too thin before achieving real depth in any one vertical.
That said, they are winning contracts, generating revenue AND an underlying operating profit. Which certainly shows this is beyond just hype. And they’ve built a decent cash position after the recent raise and have some notable partnerships and contract wins, particularly in defence where revenue is expected to double this year. What’s more, some customers, especially in defence, are using Vection’s tech to enhance their own products, which are then sold on to the end user.
And maybe that’s the real value here...they’ve developed a tech stack that’s highly configurable/extensible and can act as a platform for others to build on. Vection becomes the enabler rather than the end product. That flexibility seems to be part of the deliberate design; the same software can be adapted for training, healthcare, retail, or engineering with minimal changes.
I also liked the insight that their offering benefits from improvements in third-party hardware. As Meta, Apple and others roll out better headsets and AR devices, Vection’s user experience improves automatically, without them needing to invest heavily in hardware development.
It’s an intriguing business with real commercial traction. If they can continue the sales momentum without too much cost growth, the ~2.4x sales multiple likely wont be seen as excessive when we look back in a few years.
Happy to watch from the sidelines for now.
