Bo Mattsson, (Cint, Qasa, Match2One), Per Brilioth (Lendify, LeoVegas, Vostok New Ventures) and Klaus Hommels (Skype, Facebook, King, Spotify) are three of several new business angels who have invested in the third round of Propel Capital, the investment company that exclusively invests in STING companies. Starting this fall, Propel can invest in both STING Accelerate and STING Incubate companies.
– Propels great track record when it comes to sourcing new tech companies are very attractive in itself and offers close access to hugely talented individuals, great ideas, and deal flow is very interesting, says Bo Mattsson.
Propel Capital brings together about 30 of Sweden’s leading business angels who have come together to invest in Swedish startups. Propel works as a matchmaking platform that lets investors get to know many companies and entrepreneurs on Stockholm’s tech scene, for a limited investment and risk.
– It didn’t take long time to attract business angels to Propel Capital III – it was over-invested and we had to decline some investors, says Pär Hedberg, founder and CEO of STING and initiator of Propel Capital.
Propel Capital III will invest 300 000 SEK in each of 25-30 new STING companies until June 2017. And now the concept has broadened to include both startups in the programs STING Accelerate (Internet/media companies) and STING Incubate (companies with technological innovations in several different industries).
Since its inception in 2014, Propel Capital I and II funded 33 startups in the accelerator program STING Accelerate. The portfolio companies have performed well, and of the 17 companies that were accepted the first year, 14 have attracted a total of more than 40 million from other investors.
Ludvig Linge, co-founder of TAT (The Astonishing Tribe), which in 2011 was sold to Blackberry, has invested in all rounds of Propel Capital – I, II and III – and see great advantages in the arrangement.
– It’s a very easy way to broaden my investor network while in a fun and effective way be exposed to many really good entrepreneurs and companies. The positive experience from Propel Capital I and II made me choose to invest also in Propel III, says Ludvig Linge.
Propel Capital offers a highly cost-effective structure where investors share the risk, both by investing with several other professional angels, and in several companies carefully selected by STING. The companies also get business development support by STING and access to the business angels’ knowledge and networks through Propel to get a good start on their journey. The financing is made through a 300 000 SEK convertible that can be exchanged for shares.
> Read more about Propel Capital