InnovationsKapital has closed its third fund, InnKap 3, at SEK1.2 billion (e132 million.)
The Swedish VC hopes to become one of the region’s leading early stage investors.
The fund, which began raising at the end of last year, has exceeded its original target by e12 million. The company’s CEO, Staffan Ingeborn, said: “We want to be the natural choice for technology and research-based Nordic start-up and early stage companies.” InnKap 3 will follow the investment strategy of the firm’s previous funds, focusing on Information & Communication Technology, Healthcare and Life Sciences.
InnKap’s latest fund is approximately twice the size of the company’s two previous funds added together.
The firm has achieved this by attracting more capital from international investors, bringing InnKap’s capital under management to over SEK1.7 billion (e189 million). “We are widening our network and we will be more able to help our portfolio companies expand in the global market,” said Ingeborn. Of the fund, 38 per cent was raised in Sweden with investors from the UK, Germany, Switzerland and the US contributing the rest. Fund managers committed the majority of the e132 million raised with 45 per cent of the total coming from new investors. These include Extorel from Germany and New Wave from the US.
InnKap’s previous investors have also increased their commitments to the new fund, providing over e60 million. Investors include Bure Equity, the European Investment Fund, Merita, SEB, Sitra, Vertex (Singapore), Volvo and regional Swedish insurance companies. Academic institutions also invested including the University of Oxford and Chalmers University of Technology, which initiated the founding of the firm with Investment AB Bure in 1994.
The fund will invest no more than 10 per cent of its total capital in a single company and expects to participate over a number of rounds. It is looking for 25 to 30 investments, approximately 50 per cent of which will be in Sweden with the remainder in Denmark, Finland and Norway.