In common with the rest of the internet investment sector, Brainspark is suffering from the downward valuations of its investee companies. This is, not surprisingly, having a knock-on effect on Brainspark's valuation itself, despite the confidence shown by the directors. The root of the problem is that the investee companies have not achieved follow-on funding, meaning that the valuations, instead of rapidly rising, are staying put or falling. As a result, Brainspark is changing its approach. This involves cutting staff numbers by 40% and charging more rent to its incubator tenants at its Clerkenwell base. Also the chief operating officer and finance director are departing, to be replaced by one director. To date, Brainspark has invested in 18 projects, but the value of the portfolio was reduced by £1.7m net over the year thanks to disposals and revaluations. Cash burn will hopefully be reduced from £500,000 to £200,000 per month, and there was £9.8m in the bank at 31 December.

Brainspark	AIM	£0.6m	0.18p	0.00p
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