Published on: November 21, 2023

Portfolio update highlights transition period

Tern has announced an update on its portfolio activity. Individual companies are gaining commercial traction, with configuration work turning to repeat licencing as businesses move to SaaS models. As flagged, valuations across the global technology landscape have been challenged due to risk appetite and long-term value expectations. However, third-party investments remain critical proof-points that Tern’s model is delivering. Tern is positioned at the confluence of IoT, data and thereby Artificial Intelligence (AI), where we see multiple opportunities in the existing portfolio; we discuss this in more detail overleaf. We note Tern’s decision not to invest further in Konektio, which we see as strategically correct and perhaps a signal that the new structure is working well. We continue to look for significant value creation from Tern’s hybrid VC model, with management seeking well-timed exits that maximise value ‘when the market conditions are right’.

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