Access to capital is a key element in allowing start-ups and other small business to grow and develop their business. The Swedish Venture Capital market is a well-established and advanced market, with a high degree of presence from both Swedish and international Venture Capital funds. Sweden is one of Europe’s leading countries with respect to Venture Capital investments in relation to its GDP.
A typical Venture Capital investment generally involves a purchase of a minority stake, generally in the form of newly issued shares, in a newly established start-up or other small and entrepreneur-owned company, often with limited revenue and few employees, but with a large growth potential. Many Venture Capital investments involve IT or other technology companies. During the past few years, another type of Venture Capital has become more common, in the form of Venture Debt, which is generally a relatively high risk/high interest loan with an additional potential upside for the lender through various types of equity related instruments, generally warrants over shares in the company.
Cederquist’s reputable team for Venture Capital transactions has significant experience from all types of Venture Capital related transactions, and regularly represents both Swedish and international Venture Capital funds in their investments in start-ups and other entrepreneur owned businesses, as well as their portfolio companies and other Venture Capital backed businesses in different types of Venture Capital transactions. Our specialists also have significant experience in so-called Venture Debt financing transactions.
We also represent Venture Capital funds and their portfolio companies in relation to different types of equity related programs and other incentive structures for founders and other key employees.