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Tern Capital is a software investment firm founded in 2013 and headquartered in London, UK. The firm focuses on investing in software businesses, utilizing the operational experience of its team to create value for its portfolio companies. Tern Capital has established itself as a key player in the software investment space, emphasizing a hands-on approach to drive growth and operational excellence.
As of now, Tern Capital manages a portfolio of seven companies and operates with a check size range of $500K to $4M. The firm primarily invests in the UK and Europe, targeting various sectors including SaaS, healthcare, consumer, fintech, edtech, govtech, media, logistics, and telecom. Tern Capital has built a reputation for its operational expertise, which it leverages to enhance the performance of its investments.
Over the years, Tern Capital has achieved notable milestones, including partnerships with significant clients and a growing portfolio that reflects its commitment to impactful software solutions. The firm continues to seek opportunities that align with its investment thesis, focusing on operational growth and excellence.
Tern Capital invests exclusively in software businesses across multiple sectors, including public sector, retail, media, and communications. The firm targets companies at various stages of development, including seed, seed-plus, Series A, and Series B. Tern Capital's investment strategy encompasses buy & builds, carve-outs, and scale-ups, with a strong emphasis on operational growth.
The firm typically invests between $500K and $4M, focusing on companies with specific financial metrics. For buy & builds, Tern Capital looks for businesses with £0.5-4M ARR and £0.5-3M EBITDA. In carve-outs, the target is £1-4M ARR with £0-3M standalone EBITDA. For scale-ups, Tern Capital seeks companies with £1M+ ARR, without a requirement for EBITDA. This structured approach allows Tern Capital to identify and support businesses that demonstrate potential for significant operational improvement and growth.
In evaluating potential investments, Tern Capital looks for founders who possess a strong vision and the ability to execute their business plans effectively. The firm values operational excellence and seeks to partner with companies that can benefit from its hands-on approach to drive growth.
Tern Capital has invested in a diverse range of software companies, showcasing its commitment to operational growth across various sectors. The firm's portfolio includes:
This portfolio reflects Tern Capital's focus on impactful software solutions that drive operational excellence and growth across various industries.
Karthik Dasari - Founder: Karthik has extensive experience in software investments and operational management, having previously worked with leading firms in the industry.
Mark Thompson - Operating Partner: Mark brings a wealth of operational expertise, focusing on enhancing portfolio company performance through strategic guidance.
Tom Llewellyn-Lloyd - Principal: Tom specializes in deal sourcing and evaluation, leveraging his background in venture capital to identify promising investment opportunities.
Stuart Pittaway - Chief Technology Officer: Stuart oversees the technological aspects of portfolio companies, ensuring they leverage the latest advancements to drive growth.
James Hang - Deal Execution: James is responsible for executing investment deals and managing relationships with portfolio companies.
Simon Corson - Deal Origination: Simon focuses on sourcing new investment opportunities and building relationships within the software sector.
To pitch Tern Capital, founders should use the contact email investments@terncapital.com or visit their website at terncapital.com. A comprehensive pitch deck is essential, including details on the business model, market analysis, and financial projections. Tern Capital appreciates clarity and conciseness in presentations.
Response times may vary, but founders can expect to hear back within a few weeks. Warm introductions are preferred, as they can facilitate a more favorable review process.
In recent months, Tern Capital has made several notable investments in the software sector. The firm has added companies like Mind Of My Own, StoreSpace Insights, and Thomson Screening Solutions to its portfolio, reflecting its ongoing commitment to impactful software solutions.
Additionally, Tern Capital continues to explore new opportunities within the UK and European markets, seeking to expand its portfolio with companies that demonstrate strong operational growth potential.
What are Tern Capital's investment criteria?
Tern Capital invests in software businesses across various sectors, focusing on companies at different stages, including seed, seed-plus, Series A, and Series B. The firm typically invests between $500K and $4M.
How can I apply or pitch to Tern Capital?
Founders can pitch to Tern Capital by visiting their website at terncapital.com or by emailing their investments team at investments@terncapital.com. A detailed pitch deck outlining the business model, market opportunity, and financial projections is recommended.
What makes Tern Capital different from other investors?
Tern Capital emphasizes a hands-on approach, leveraging the operational expertise of its team to drive growth and operational excellence in its portfolio companies. This operational focus sets them apart from many traditional venture capital firms.
What is Tern Capital's geographic scope?
The firm primarily invests in the UK and Europe, targeting software businesses that align with its investment strategy.
What is Tern Capital's post-investment involvement like?
Tern Capital takes an active role in supporting its portfolio companies, providing operational guidance and resources to help drive growth and improve performance.
What is the typical check size for Tern Capital?
Tern Capital typically invests between $500K and $4M in its portfolio companies, depending on the stage and specific needs of the business.
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