Published on: March 2, 2022

Participation in a new venture capital fund

Tern has agreed to participate in a new venture capital fund, the Sure Valley
Ventures UK Software Technology Fund (New SVV Fund). The fund is
expected to complete its first close with £85m of investment, of which £50m
will be from the British Business Bank (BBB) with the balance from other
investors. Tern’s £5m investment will be drawn down in tranches over the
10-year life of the fund, with only £90k on the first close. In our view, this
broadens Tern’s exposure to early-stage private UK technology companies
with only a modest capital commitment. SVV has a track record of
developing a portfolio of technology investments, delivering both cash
returns and a steady flow of upward revaluations. We believe that Tern’s
participation will achieve attractive financial returns while also expanding
its pipeline of technology businesses to add to its network of companies,
with the potential for additional commitments over and above investments
made through the New SVV Fund.