VENTURE CAPITAL – InnovationsKapital returns to fibre optics

Just weeks after netting SKr 1 billion (EURO119.5 million) from a SKr 15 million investment following the sale of Altitun to ADC Telecommunication, InnovationsKapital has completed a new early-stage investment in the fibre-optics arena, Pangea Fiber Optics. Pangea, currently in its start-up phase, develops equipment for monitoring wave division multiplexing (WDM) systems within the broadband sector. The enterprise is a spin-off from the Institute for Optics Research in Stockholm and retains close links with its former parent. Staffan Ingeborn, InnovationsKapital’s managing general partner, says independent analysts expect the market for Pangea’s products to be valued at some $15 billion in 2003.

The venture firm will initially invest SKr 6 million via its second fund, InnKap II, alongside an equal amount from German business angel Jan Hummel; the backers own some 25 per cent of Pangea’s equity.

If all progresses according to plan, InnovationsKapital plans to support further finding rounds for Pangea.