Tech and lifescience startups in Southern Sweden and Denmark will be seeing an increase in funding opportunities from a newly established venture capital firm Swedish Growth Fund. The fund is estimated to bring about 400 million SEK (43m euro) to companies, and the first investment has already been made. The fund is driven by Sven Holmgren, Cecilia Hollerup, Staffan Bergqvist, Niklas Lundkvist and Jonas Edelswärd, as CEO.
The fund will focus on smaller companies, that are 6-18 months away from the small cap listing.
“Above all, we want to help small companies through the valley of death. We want to be an option when the equity has run out, and a company is faced with two choices: to bring in venture capital or go to a listing on the smaller stock markets,”- says Jonas Edelswärd to DiDigital.
Jonas Edelswärd also points out that there is a need of an actor who could assist companies in the final stages before listing on a stock market to guarantee good pricing and avoid discounts. And that’s what Swedish Growth Fund is set to do.
In the first stage the fund is expected to collect 150 million SEK from Swedish and American investors. The hope is to have a 50/50 ratio, with half of the investors being from Sweden and the other half from the US.
The fund will make a dozen investments per year during a 3-year period, with investment rounds of 5-10 million SEK (between 500 000 and 1 million euro).
“We expect to have relatively short investment cycles of up to two years, but it all depends on how the holding can be sold off. We will sell both in and off the stock market in a controlled manner so that we are not price sensitive,” – says Staffan Bergqvist.
The first investment is made together with Almi Invest in the amount of 3 million SEK (over 300 000 euro) in a Lund based Pronos Pharma, a company that develops a drug that reduces damages associated with a stroke.