IoT specialist investor Tern has raised £700,000 through a share placing and acquired a stake in a leading medical VR firm.

London-based FundamentalVR has built an immersive simulation application training platform for surgeons which creates virtual reality simulations of procedures and also uses haptic ‘touch’ feedback.

Tern has taken an 18.3 per cent holding for funding just short of £800k.

FundamentalVR will use the funds to develop SaaS delivery systems which will enable it to add to its surgical simulations and broaden its customer base.

"We are truly excited to add FundamentalVR to our portfolio of potentially transformational companies,” said Tern CEO Al Sisto.

“FundamentalVR is a highly disruptive company with the potential to improve patient outcomes in the medical industry.

“Its experienced management team has the credentials to steer FundamentalVR to capitalise on the rapidly growing medical simulation market and in the process create shareholder value for Tern.

"We look forward to working with them to help them achieve their ambitions of building a world-leading SaaS based immersive surgical simulation platform using haptic intelligent feedback via VR to respond to surgeons in real-time.

“With a range of customers already engaged and generating revenue, they have a great platform from which to grow."

The rapidly growing medical simulation market is anticipated to grow to $2.3 billion by 2021.

FundamentalVR CEO Richard Vincent said: “Less than half of one percent of surgeons worldwide have any day-to-day access to surgical simulation.

“Through our platform, Fundamental Surgery ,we believe that our strategy of high-end simulation through low-cost immersive technology will help to dramatically change this over the coming years and put quality training within arm's reach of surgeons across the globe."