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Using statistics to attract investors

  • Publisert 09.02.2014
The financial crisis has been hard on the Nordic venture capital funds that in recent years have been struggling with fundraising. By collecting performance statistics for the Nordic venture capital market, the aim is to attract more international capital to the region.

– At the moment, there is no statistics available indicating the return an investor can obtain by investing in Nordic venture capital funds. This is a clear obstacle for fundraising, says Erik Hagen, managing partner at Viking Venture and project leader.

 

Hagen is convinced that the lack of performance statistics solely can and should be solved on a Nordic level.

 

– This makes perfect sense, as the individual Nordic countries are too small in the global competition and the region already very often is seen as a single market by international investors. In addition, the countries share many similarities, as for example when it comes the high focus on technology.

 

Promoting the Nordics

The performance statistics will to begin with build on full cash flow data from the members of the

Nordic Venture Network, which is the owner of the project. Four of the members have taken lead in the project: Conor Venture Partners, Finland, Northzone Ventures, Sweden, Sunstone Capital,  Denmark and Viking Venture, Norway.

 

The decreased access to capital to the Nordic venture capital funds has had a considerable impact on Nordic startup and growth companies – especially within technology.

 

– Credible statistics will be used to promote the Nordic region as an attractive region to invest in. This will benefit all the venture funds taking part in the project – not the least Nordic technology companies ready for internationalization, Erik Hagen says.

 

Opportunities, not competitors

He also emphasizes the importance of the Nordic countries doing what they can to secure the access to resources in the future, in order to be able to continue to invest in those who dare to venture into the intensifying international competition.

 

While he sees the new emerging markets as competitors, he also sees them as enormous opportunities.

 

– We have expertise areas in the Nordic countries, in which we can benefit greatly from these new markets arising.

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FACTS

PROJECT PARTICIPANTS:

 

Norway: Viking Venture

 

Sweden: Northzone Ventures

 

Denmark: Sunstone Capital

 

Finland: Conor Venture Partners

 

 

 

WHAT IS A VENTURE CAPITAL FUND?


An investment fund that manages money from investors seeking private equity stakes in startup and small- and medium-size enterprises (SMEs) with strong growth potential. These investments are generally characterized as high-risk/high-return opportunities.

 

 

WHAT IS NORDIC VENTURE NETWORK?


Nordic Venture Network is a non-profit Nordic organization of 11 of the leading technology venture capital firms in the Nordic region. The network was established in 1999 and is headquartered in Stockholm. It mainly focuses on strategic relationship building between the members and international financial and industrial players. In addition, it acts as a discussion forum of joint issues between the members as well as between the members and the major Nordic private equity investors.

 

(Sources: Investopedia, Viking Ventures)