Technology business fails months after long-term investor stepped back

Chesterfield technology company Konektio has collapsed into administration, four months after a key investor effectively walked away because the business “had lost focus”.

The Internet-of-things company, which was previously known as InVMA, had developed energy monitoring technology and monitoring and predictive maintenance technology designed to “unlock the true value of industry 4.0”.

It raised £2.1m in December 2021 from the Midlands Engine Investment Fund (MEIF) and Northern Powerhouse Investment Fund (NPIF) and announced it had secured a further £2.5m last May in two tranches, mostly from Mercia and Foresight.

Tern, a specialist technology investor that has backed Konektio for several years, had committed £100,000 for the first tranche but pulled out of the second tranche in November because of the business’s performance.

Tern is listed on the Alternative Investment Market and announced Konektio’s demise in a statement to the stock market this morning.

Ian Ritchie, chairman of Tern, said: “Whilst it is obviously very disappointing that Konektio has been placed into administration, it was clear to the Tern board that the Konektio business had lost focus in the second half of 2023.

“We therefore decided not to invest further in Konektio in November 2023 and Tern’s stake was significantly reduced.

“The nature of investing in early-stage technology businesses is that there will inevitably be the occasional failure, but this is a first for Tern.”