TERN

Tern PLC

Financial Services First-pass screen £4.51m

430/1000 Overall fit

AI beneficiary 35% 38

Operating leverage 25% 42

Valuation 25% 46

Downside protection 15% 51

First-pass take

Early-stage IoT VC fund with one genuinely AI-focused investment (Talking Medicines) but diversified across security, industrial IoT, and healthcare tech. Positions for long-term digital transformation rather than near-term AI spending. Net cash, trading at NAV. Portfolio grew 18% but recent fundraises dilute shareholders.

Flags

micro-capvc-modelgrowth-stagehigh-dilution