Tern has delivered a solid set of first-half results against a challenging backdrop, with ARR up 43% year on year and other KPIs continuing to show an improvement. As flagged, valuations across the global technology landscape have been challenged due to risk appetite and long-term value expectations. Therefore, despite a significant improvement in metrics across Tern’s portfolio, the valuation decreased to £21.8m (FY22: £23.9m). The portfolio is gaining commercial traction, highlighted by Wyld Networks’ post-period agreement with SpaceX to explore areas of collaboration. During H1, Tern focused on supporting the growth and development of its existing portfolio, funded by cash realisations of its existing holding in Wyld Networks and a £0.5m loan. In a difficult environment for early-stage technology companies, we believe that Tern’s ‘hands on’ funding-to-exit model can produce positive outcomes in the mid to long term.