Sting’s fund Propel Capital now closes its fourth round of SEK 12 million to be invested in approximately 40 Sting companies from August 2017 to December 2018. Ten out of the 40 participating business angels are women, which is a real boost. In the last round only two women participated.
Propel Capital is Sweden’s largest and most active seed investor, based on the number of investments. What makes Propel attractive among business angels is the possibility to, with a relatively small amount of capital, be an indirect co-owner in many of Sweden’s most promising startups. The risk is divided; partly among many investors and partly among many companies. The angels also have the opportunity to make direct investments in the companies they really like.
“For new investors, Propel Capital also offers an entrance to Stockholm’s startup community where you meet and learn from other investors’ knowledge and experience, and get an introduction to some of the most interesting startup companies right now,” says Pär Hedberg, founder and CEO of Sting.
Propel Capital’s successful concept has been noted and become a model for other incubators around the country.
“Sting has helped, among others, MINC in Malmö, which has now started its own investment business that copies Propel Capital’s design and concept. Now we will also help Actic Business Incubator in Luleå, and several other incubators are in the pipeline, says Pär Hedberg.
Sixteen of the 40 investors included in Propel Capital IV have participated in previous rounds of Propel. Among others, Bo Mattsson, founder of Cint, which was sold to Nordic Capital 2016, and an investor in Qasa and Match2One.
24 new business angels now join, including the following three investors:
- Mathias Weinhandl, former NHL pro, investors in BlueCall, Challengize, Linkura and Stilla
- Mattias Falkendahl, Founder of Digital Marketing Agency Klikki, Investor and Board Member of Coworks Inc
- Boel Rydenå-Swartling, Investor and Chairman of Charge Amps, Investors in Ekoligens and Froda, Formerly. Chairman of Noa Potions
Since its inception in 2014, Propel Capital I, II and III have invested SEK 18 million in 60 STING companies. The companies have subsequently raised an additional 100 million kronor. More than a third of the companies have received direct investment from Propel angels.
In 2016, the portfolio companies had a combined turnover of SEK 120 million. The portfolio includes companies such as Sellpy, Karma, Signal Signal, DP Organizer, MIND Music Labs, Airinum and Sudio.