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Published on: April 25, 2023

Supporting investee despite tough markets

Tern’s portfolio company Konektio (formerly InVMA) has announced a small but successful £0.3m equity fundraise. Tern invested just £0.1m in this round, alongside the conversion of £0.5m in loan notes. Tern’s holding in Konektio’s equity has risen slightly to 39.9% but with a book value now of £1.0m, representing a 55% decline on the previous valuation of the investment. Clearly this down-round is disappointing but in tough conditions, and with a challenging macro backdrop, the pressure is perhaps unsurprising. We note Tern’s hands-on management of the business (with the recent secondment of a Tern director) and hope that future developments will trend positively with this additional focus.

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