Mayo Clinic and Sana Kliniken join VCs in $5.67 M Series A Funding Round of FundamentalVR

Tern Plc (AIM: TERN), the investment company specialising in the Internet of Things (“IoT”), is pleased to announce that FVRVS Limited (“FundamentalVR”), a leading virtual reality (“VR”) training and data analysis technology platform and one of Tern’s existing portfolio companies, has closed a £4.3 million Series A funding round, including a £0.5 million convertible loan note conversion, with a post-money valuation of £11.3 million. This funding round allows for further investment into FundamentalVR’s Fundamental Surgery education platform, the first surgical simulation software system to deploy HapticVR™, combining VR with cutting-edge haptics (the sense of touch).

The implicit price of the syndicated funding represents a 27% uplift on the investment of £1.9 million made by the Company in FundamentalVR in May and October 2018. Following the funding round, Tern’s shareholding in FundamentalVR will be 26.9% with a valuation of £3.0 million, representing a fair value increase of £0.6 million.

The funding round was led by Downing Ventures, with participation from Epic Private Equity and Brighteyes Ventures. Leading medical institutions also participated in the funding round, including Mayo Clinic, one of America’s leading centres of medical excellence, and Sana Kliniken, one of Europe’s leading medical organisations and the third largest hospital organisation in Germany, which is a strong endorsement of the quality of FundamentalVR’s offering.

In conjunction with this funding round, Tern has converted, at a 20% discount to the current fundraising price, £0.5 million of convertible loan notes advanced to FundamentalVR (plus interest). Tern provided these bridging loans to FundamentalVR between April and September 2019.

Tern CEO, Al Sisto, said, “We identified early on that FundamentalVR’s team was developing a platform that was very special. A training and data analysis offering which could revolutionise the skills development of surgical practice, while at the same time creating a database of significant importance to the industry. We are delighted that the value and relevance of this exciting business and its entire staff has been recognised by this outstanding syndicate of new investors we helped solidify.”

“This is an important milestone for FundamentalVR and it epitomises Tern’s strategy to invest in great teams and ideas, not only through the provision of capital, but also with active support and advice for the benefit of our shareholders. Changing the approach to learning and deploying new procedures and products in the world of healthcare is of critical importance for everyone’s future and FundamentalVR is leading the way. We look forward to announcing further important developments from the company.”