TERN opens UK venture fund for refugee founders with £300,000 to start
TERN, the Entrepreneurial Refugee Network, has launched the Refugee Venture Fund, a UK vehicle for refugee-founded high-growth businesses, with applications opening on 14 October 2026. It was set up in partnership with Atomico, whose contribution has not been disclosed.
The practical reading is that this is a pilot that tests whether a specialist route can reach founders the usual pipeline misses. At £300,000 initial capital it is small, and its larger ambition depends on further funders.
How the Refugee Venture Fund is structured
Initial capital is £300,000 with a target of £500,000, to be invested as £50,000 to £100,000 cheques in three to five companies. The founding investors are Dominus, This Day Foundation and Future Leaders, and the plan is a £10 million fund. It is an SPV with dual-class shares that give TERN enhanced governance rights.
The fund is sector agnostic but prioritises software, AI and climate technology. Eligible founders must lead or majority-own the business, be UK-based with legal refugee status, and be at minimum viable product, pilot or traction stage. The fund also applies a five to ten year exit criterion and offers 12 months of coaching.
What £300,000 buys
At £50,000 cheques the starting capital covers six investments, and at £100,000 it covers three, so the stated three to five fits. The £10 million target is about 33 times the initial capital, which shows how far the plan relies on future commitments. All capital is to be allocated by March 2027, with a first round closing in December 2026.
The size of the opportunity as TERN and Square estimate it
TERN and Square estimate that 26,500 refugee entrepreneurs contribute £520 million to the UK economy, with £5.1 billion of potential. That works out at about £19,600 per entrepreneur today, and the potential figure is nearly ten times the current one. The Cedar Review of September 2026, a survey of 81 refugee entrepreneurs, found 56 per cent had run a business before arriving and 40 per cent cited start-up finance as a major challenge. The sample is small.
Charlie Fraser, Strategy and Partnerships Director at TERN, said the problem is not a shortage of entrepreneurial ability or ambition, and that this is about closing a market gap, not lowering the investment bar.
What founders and investors should do next
An eligible founder should check the status requirement and have traction evidence ready, since the first round closes in December. Angel groups and investors comparing structures can look at how the British Business Bank backs Fuel Ventures and Living Optics, and at the tax reliefs in the earlier piece on SEIS and EIS ahead of the Budget. The question to follow is whether larger funders join before the £10 million target.
This is general information, not legal, tax or investment advice.
Key takeaways
TERN opened applications on 14 October 2026 for the Refugee Venture Fund, with £300,000 initial capital and a £500,000 target.
Cheques are £50,000 to £100,000 into three to five companies, within a planned £10 million fund.
Atomico is a partner, but its financial contribution is undisclosed.
The first round closes in December 2026 and all capital is to be allocated by March 2027.
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