STING has established a new investment company, Propel Capital, which as of august 2014 offers all companies that are admitted to the accelerator program STING FastForward an investment of 250,000 SEK (28,000 EUR). The venture capital comes from more than 20 reputable business angels who have joined forces to invest in internet/media startups.
Through the formation of Propel, STING is the only accelerator in the Nordic countries that, like Y Combinator in the United States, invests in companies that are admitted to the accelerator. It is a long-used method which has been successful in the United States and that STING now wants to test in Sweden.
In addition to the 250,000 SEK, the companies in the STING FastForward program, get access to the about 20 highly qualified angel investors who invested in Propel. The angels have the opportunity to meet the startups before other investors and can get to know them immediately at the start of the FastForward program in the premises of SUP46 in central Stockholm.
Some of the business angels who invested in Propel Capital are:
Kristofer Arwin, Founder of Pricerunner;
Hampus Jakobsson, co-founder of TAT;
Magnus Bergman, investor in Prezi and TrueCaller;
Erik Byrenius, founder of OnlinePizza.se;
Daniel Laurén, founder of Priming Ventures;
Carl Palmstierna, one of Sweden’s most active business angels
− We know that entrepreneurs who have come a long way, but does not yet have a finished product or service to present, often have trouble finding smart money. We do not want the companies we work with to devote all their time to seeking money − they should develop their business. Therefore we have taken the initiative to establish Propel Capital, says Pär Hedberg, founder and CEO of STING.
Propel may also invest in other selected STING companies within Internet/media/ICT, and plans to invest in a total of 15-20 promising startups in the 12-month period that Propel will invest.
− The investment from Propel helps startups to focus on business instead of chasing capital. This opportunity is something I want to contribute to and give companies the best chance to succeed, that’s why I invested in Propel Capital, says Erik Byrenius, founder of OnlinePizza.se.
Business angels in Propel are themselves entrepreneurs with expertise in Internet/media. The angels can make their own direct investments and get more deeply engages in the companies where they feel they can make a difference, both through their own expertise and through their networks.
Photo: Magnus Hjalmarson Neideman, SvD