This is how venture capital works with Almi Invest
Almi Invest is a state-owned company with a wealth of experience of investing in startups. We can help your company to achieve sustainable growth and serve as a bridge to private venture capital.
What is venture capital?
Venture capital involves investing in startups or other businesses deemed to have strong growth potential. In exchange for this investment, the venture capitalist receives shares in the company and the company’s founders must relinquish a certain amount of control to the investor.
Our overall objective is to work together to develop the company to its full potential and to achieve a profit/financial exit within five to seven years through, for example, an initial public offering (IPO) or acquisition by another company.
What is the difference between venture capital and a loan?
Venture capital involves selling shares in your company in exchange for investment, whereas a loan must be repaid. The investor will expect to take an active role in the company, such as a seat on the board.
When is venture capital right for my company?
Investment in the form of venture capital can provide your company with the opportunity for rapid growth and development, not only through the immediate injection of capital but also through the experience and network that the investor brings with them.
Almi Invest manages approximately SEK 3.5 billion and has invested in around 900 startups since its inception. Our top holdings have been acquired by companies such as Google, Microsoft, Qlik and Apple, or been valued at billions of dollars on the stock market.
As a state-owned, industry-independent venture capital company, our role is to act as a bridge to private capital and contribute to a functioning venture capital market across the entire country. Over the years, Almi Invest has co-invested with over 2,000 business angels and institutional investors. Almi Invest is owned by Almi AB and ultimately by the Swedish state. It receives partial funding from the EU, Almi Företagspartner and regional organisations.
Our GreenTech Fund contains SEK 1.2 billion earmarked for environmentally friendly investments to reduce CO2 emissions.
Examples of areas we invest in include:
Tech:
Enterprise and Consumer Software, Media Tech, Data & Security, eCommerce, FinTech, VR/AR, IoT, Gaming, HR Tech
Life Science:
Med-tech, Drug Development, eHealth
Greentech:
Renewable Energy, Energy, Recycling Systems
Industry:
Industrial Equipment, Materials, Agri-tech, additive manufacturing
How does Venture Capital work at Almi Invest?
As a state-owned, industry-independent venture capital company, our role is to act as a bridge to private capital. We always take a minority shareholding and are active owners, either by appointing a director or adjunct member to the board, so that we can create the best possible value for your company.
An investment process can vary depending on who is investing. Our investment process can be divided into seven distinct steps:
1. Inflow of business ideas
Every year, Almi Invest receives inquiries from between 800–1,000 companies seeking investment. We only invest in 5–7 per cent of applicants.
2. Analysis
Before making an investment decision, we conduct an initial assessment to determine if your company represents an interesting investment and that it is at the right stage of its development.
3. Investment Decision
An investment decision is made in two steps. An investment manager presents their investment proposal to the team. If the team supports the investment proposal, the investment manager presents it to the Investment Committee.
4. Agreement
Before any transaction takes place, an investment agreement and a shareholder agreement are signed.
5. Development
Almi Invest becomes an active owner by appointing either a director or adjunct member to the board, so that we can create the best possible value for your company.
6. Exit
Our goal is to eventually sell our shares with a return on investment. The process for a successful exit is agreed upon in the shareholder agreement.
7. Reinvestment
When we exit your company, we will reinvest the capital in new and existing companies.
How large an investment can Almi Invest make?
Almi Invest can invest between SEK 1 million and 10 million in a single company.
Our national GreenTech Fund invests between SEK 5 million and 30 million in companies in the green-tech sector that are focused on reducing CO2 emissions. We always take a minority shareholding.
What value does Almi Invest create for entrepreneurs?
Almi Invest is Sweden's most active investor in startups, making approximately 200 new and follow-on investments each year. This means that we have extensive experience of investing in startups and that we understand the challenges they face with various business models in different markets.
When Almi Invest invests in your company, you gain an active owner dedicated to developing your business at boardroom level. Our experienced professional investment managers actively participate in the successes and challenges of the companies we invest in.
We also have a vast investor network that can be leveraged for follow-up investments in your company. Almi Invest has made early-stage investments in companies that have gone on to achieve billion-dollar listings through IPOs, or that have subsequently been acquired by global giants such as Google, Microsoft and Apple.
How do I apply for venture capital?
Submit your pitch telling us how you intend to change the world and achieve rapid growth.
Our investment criteria:
- New, unique, and innovative Swedish startups capable of establishing a position in the global market.
- Teams with a good mix of skills, behavioural styles and experiences.
- Scalable business models with unique or niche technologies.
- Addressing new market opportunities with solutions to real, significant customer problems.
- Our GreenTech Fund specifically invests in environmentally friendly, innovative companies seeking to reduce CO2 emissions.
On average, Almi Invest invests in only about 7 per cent of all companies we evaluate each year. Does your company stand out as offering a solution that is around 10 times better than those already on the market? Does it have very strong growth potential? In that case, venture capital from an active shareholder may be suitable for your company.
Pitch your startup
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Venture capitalWe may not have the solution you need
Almi is a state-owned enterprise and our mission is to smooth the way for you and all of Sweden's entrepreneurs. Sometimes, we may not be able to offer the solution you need.
In such cases, thanks to our extensive network we can refer you to another institution or agency that may be able to assist you with your ongoing work.
Almi Invest is financed by the EU's regional structural funds, Almi AB, and regional owners.
