Lund-based venture capital firm Fåhraeus Startup & Growth (FSG) has successfully closed its second fund at € 74 million (849 million SEK), significantly larger than its first fund of € 26 million (300 million SEK). The firm, founded by Christer Fåhraeus and Emanuel Stihl, focuses on investing in early-stage tech and life science companies, with a particular emphasis on companies operating at the intersection of technology and healthcare.
EIF Joins as a Key Investor
A major contributor to the fund is the European Investment Fund (EIF), which has invested € 20 million (233 million SEK). EIF, known as one of Europe’s largest institutional investors at the VC level, provides long-term backing to venture funds and often continues supporting funds over multiple generations.
Strategic Investment Focus
With around € 60 million still available for deployment, FSG plans to invest in Nordic and European tech, pharmaceutical, and medtech companies over the next three years. A portion of the fund will be reserved for follow-on investments, ensuring continued support for portfolio companies.
FSG’s investment strategy prioritizes:
- Pharmaceuticals: Companies in clinical phases, preferably with low-risk molecules that have already been tested in humans.
- Medtech: Companies with registration-ready studies, clinical testing, and some initial commercial traction.
- Tech: High-margin businesses with clear market differentiation and significant revenue potential.
The firm also sees fewer competing investors in the tech-life science segment, allowing it to find strong investment opportunities at reasonable valuations.
Growing Portfolio and Expansion Plans
FSG has already invested in six companies, including Saga Diagnostics, Ossdsign, Din Psykolog, Brightbid, and Promimic.
Several strong investments from the first fund have developed well, enabling the launch of the second fund. One of the most notable examples is the startup Yazen, which has benefited from the Ozempic trend, where FSG is the largest shareholder.
“It is probably one of Sweden’s fastest-growing companies right now. We also have other promising companies, including in the pharmaceutical sector. For example, Oncorena, which is developing a drug candidate for metastatic kidney cancer,”
says Linus Wiebe at FSG to Breakit.
FSG is primarily investing in the Nordics but also considers promising opportunities across Europe. The firm believes the current market downturn in private investments provides a strong entry point for venture capital firms, as valuations remain significantly lower compared to previous years.
Positioning as a Leading Nordic VC
With the new fund, FSG aims to become a dominant player in Nordic venture capital. While its headquarters in Lund positions it well to capitalize on Swedish and Danish innovation ecosystems, the firm acknowledges the need to strengthen its presence in Stockholm and other European markets.
With this latest fund, FSG is poised to support a new generation of high-impact companies in tech and life sciences, further solidifying its role as a key player in the Nordic startup ecosystem.
