PROLIFIC tech investor Chrysalis Investments yesterday said the value of its portfolio had plunged 22.8 per cent in the second quarter of the year as its stakes in firms including Klarna and Starling were hit by a global rout in the tech sector.

Bosses said yesterday that valuations in its portfolio had been battered by "historic levels of inflation" and interest rate hikes which have dragged down tech valuations globally.

Klarna, which represented 19 per cent of the investor's portfolio in March, has been rocked by a 78 per cent fall in value after a funding round in mid-June, while Starling Bank has been written down in line with its peers despite reporting a first profit in the period.

However, co-portfolio managers Richard Watts and Nick Williamson said an uptick on markets was expected to lift valuations in its portfolio back in the months ahead.

"Equity markets have rebounded very strongly since the 30 June, and we note the very strong performance of some of the listed peers we benchmark our portfolio assets against," the pair said in a statement.

Watts and Williamson said the investor had over £48m cash and £57m of listed assets, which together represent 20.4 per cent of the market capitalisation, and that Chrysalis remained in a "very strong position" as it headed into the second half.

Shares in Crysalis dropped almost five per cent yesterday.

(c) 2022 City A.M., source Newspaper