Propel Capital V, the business angel company linked to Sting, raises 25 million crownes for investments in promising startups. Forty-two experienced business angels go in with 13.8 million and Saminvest with 11.2 million crownes. Saminvest also allocates 45 million to match selected business angels’ direct investments in the portfolio companies.
Propel Capital gives business angels the opportunity to become indirect partners in a large number of promising startups with a relatively small capital investment. The Angels are also given the opportunity to make direct investments in the companies they consider to be extra interesting. In addition to investments, the startup companies have access to the business angels’ network and knowledge. With just over 25 investments per year, Propel Capital is Sweden’s most active private investor in the early stages.
– The interest in investing in Propel Capital V has been by far the biggest we have experienced so far. We see it as an acknowledgment that previous generations of Propel Capital are developing nicely and that we have a model that really works, says Maria Ljungberg, CEO of Propel Capital.
Twenty-two of the 42 investors participating in Propel Capital V have been involved in previous rounds of Propel. They include well-known entrepreneurs and business angels such as Lars Lindgren, Boel Rydenå Swartling, Ludvig Linge and Mattias Weinhandl.
20 new investors are now joining them, many with backgrounds as entrepreneurs. Among them are Shori Zand, founder of the Avesina Group healthcare group; Ted Nelson, with a background fromTruecaller; Anna-Lina Kvarnsmyr, early investor in Storytel, and Tommy Forsell, founder of the Sting company Sensegraphics.
– I see Propel Capital as a platform for finding new exciting companies where I can contribute with both investments and my experience in building companies. I also hope to meet potential co-investors and have the opportunity to exchange experiences with them, says Shori Zand, who built up the Avesina Group healthcare group from 1 to 1300 employees and with sales of SEK 300 million in eight years.
The largest individual investor in Propel Capital V is the state-owned venture capital company Saminvest, which invests 1.2 million crownes. In addition to the direct investment, Saminvest also allocates an additional SEK 45 million for co-investment with certain selected business angels.
– We are very pleased to once again be involved as investors in Propel Capital. We see that the concept of co-investment with business angels has worked well and is now building on the initiative with the aim of improving access to capital in the early stages, says Peter Hasslev, CEO of Saminvest.
Since its inception in 2014, Propel Capital I, II, III and IV have invested SEK 34 million in 113 Sting companies. More than a third of the companies have also received direct investment from Propel angels.
Current and past portfolio companies include Sellpy, Karma, Qasa, All Ears, Sniph, Medpeople, Mindmore, Airmee and Woshapp.