Analysis: 51% of single family offices in Sweden invest in Venture Capital [2024]

Analysis: 51% of single family offices in Sweden invest in Venture Capital

We created this article as part of our research process for our European single-family office database. Here, we are investigating the share of Swedish single-family offices investing in startups as venture capital investors.

Venture Capital (VC) investments play a critical role in the economic landscape of Sweden, fostering innovation, job creation, and growth. Venture capital is a type of private equity financing that investors provide to startups and early-stage companies that are believed to have high growth potential. Sweden has become an attractive destination for VC investments due to its robust startup ecosystem, strong digital infrastructure, and supportive government policies. The country is home to numerous successful startups like Spotify, Klarna, and King – all of which have benefited from VC funding. In recent years, VC investments in Sweden have grown significantly. According to data from the Swedish Private Equity & Venture Capital Association (SVCA), venture capital investments in Sweden reached SEK 20.6 billion ($2.4 billion) in 2020 – an increase of 17% compared to the previous year. The majority of these investments were directed towards Information and Communication Technology (ICT) sectors as well as Health and Life Sciences. The Swedish government encourages VC investment through various initiatives such as tax incentives for angel investors and co-investment schemes with private venture capital firms. Furthermore, institutions like ALMI Invest act as state- owned venture capitalists investing directly into startups alongside private investors.

Family offices from Sweden are also active in the start-up scene and support young companies with growth capital and know-how. Based on our database of single family offices in the Nordics, 16 single family offices in Sweden have a Venture Capital Focus. This represents a share of 51% so that VC investments are one of the most prominent asset class in Sweden.

Swedish single family office as major startup investor: Backstage Invest

Backstage Invest is the VC-focused family office of the Tilander family. It was founded by Jörgen Tilander and is now led by his son Fredrik Tilander. Backstage invests primarily in digital business models. These include, for example, the companies Indico, Kwiff (Eaton Gate Gamin), Stryda and Savr. The takeover of APPRL by Klarna also enabled Backstage to acquire shares in Klarna, which is currently one of the hottest startup bets in Europe. In addition to direct investments, Backstage also invests in VC funds, most of which also focus on the internet and tech.

You might also like the list of the 2,500 largest venture capital investors in the world, provided by our partner portal Thousandinvestors.

Picture source: Wahid Sadiq via Unsplash (07.01.2024)

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