Propel Capital I and II has since 2014 funded 33 startups linked to STING and is thereby Sweden’s largest private seed investor. In August, Propel Capital III is launched that will invest in 25-30 new STING companies until 2017. This concept is extended to include startups in the program STING Accelerate (Internet/media companies) and STING Incubate (startups with technological innovations).
Propel Capital connects private investors and entrepreneurs. With their own limited inputs some 20 investors can take part of Stockholm’s startup scene and fund carefully evaluated startup companies. Financing is made through a convertible note of 300 000 SEK that can be exchanged for shares. The companies also get business development support by STING to get a good start on their growth journey.
– The journey to attract investors to Propel Capital III has been fast, and we are almost fully invested already. Half of the investors come from Propel I and II, and half are new business angels, says Pär Hedberg, founder and CEO of STING (Stockholm Innovation & Growth).
Ludvig Linge, co-founder of TAT (The Astonishing Tribe), which in 2011 was sold to Blackberry, is one of the investors in Propel Capital I, II and III and sees major benefits with the arrangement.
– Propel Capital is a very simple way to broaden my investor network while I’m exposed to many really good entrepreneurs and companies in a fun and effective way. The positive experience of Propel Capital I and II means that I have chosen to invest also in Propel Capital III, says Ludvig Linge.
Niclas Lilja, founder of Forest Avenue, which invests in technology companies, has also been involved in all rounds.
– Propel is a verb that means to drive something forward. It captures the idea of Propel Capital, namely to help young companies take off early. At the same time, it has given investors a good opportunity to get to know many companies and entrepreneurs in Stockholm’s tech scene, says Niclas Lilja.
Propel Capital, with its 33 investments, the largest seed investors within Internet and media. The portfolio has performed well, and of the 17 companies that were adopted the first year, 14 attracted a total of over 40 million from other investors. One example is Sellpy that makes it easy and painless to get rid of gadgets and clothes that are no longer used. Sellpy was founded in 2014 and today already has over 50 employees and a growing turnover.
– The investment from Propel was a welcomed financial contribution that helped take Sellpy from concept to product. But even more important was the availability of people with extensive experience in both industry and in building companies. Propel Capital is a large network with many talented individuals and the availability of this experience has been very valuable to us, says Michael Arnör, co-founder and CEO of Sellpy.
> Read more about Propel Capital here