Dual fundraises endorse Tern’s strategy
Tern has completed a c.£1.75 million fundraise at 11.15p to support its investment strategy and maintain its ‘positions of influence’ in its investee companies as they participate in follow-on funding rounds. In an immediate example of the latter, one of those investees, FundamentalVR, has closed a £4.3 million fundraising including the conversion, by Tern, of £0.5 million in convertible loan notes. The post-money valuation of £11.3 million implies a 27% uplift on Tern’s investment of £1.9 million in May and October 2018. Following this funding round, Tern’s shareholding in FundamentalVR will be 26.9%, with a valuation of £3.0 million, producing a fair value increase of £0.6 million. As Tern CEO Al Sisto notes, FundamentalVR’s funding round epitomises Tern’s strategy of focusing on investing in strong ideas and management teams of UK and European businesses active in the Internet of Things arena. The investors in this round included institutional money from Downing and others, and trade investment from both the US and Europe – in our view a strong vindication of both FundamentalVR and Tern.