Propel Capital IV, the investment company linked to the accelerator Sting, gets a capital injection of SEK 12 million from the Swedish state’s fund investor Saminvest to enable selective follow-on investments in the portfolio companies and maintain high pace in Propel Capital IV’s portfolio of startups – despite the corona pandemic.
The corona pandemic has affected many aspects of society. It has highlighted the need for digitalization and innovation, but at the same time, it has also created uncertainty about the economy and the availability of capital. In this situation, Sting, Saminvest, Propel Capital and its owners are keen to help keep the wheels spinning in Stockholm’s innovation clusters.
− We see that there is a risk that a number of healthy companies will find it difficult to find financing due to short-term lack of capital. We want to counteract this by giving Propel Capital IV additional investment capacity. It is good for both companies and the ecosystem, says Peder Hasslev, CEO of Saminvest, who has made great efforts in recent years to contribute to financing companies in the early stages by matching business angel investments.
Propel Capital IV, whose investors are business angels and state-owned Saminvest, has invested in nearly 60 startups. With Saminvest’s latest investment of SEK 12 million, Propel Capital IV has raised a total of SEK 32 million. The capital injection now enables Propel Capital to be able to make follow-on investments in the portfolio companies, and to participate in financing rounds where other private investors take the leadership role.
− The fact that Propel Capital now has increased investment capacity through Saminvest is a great example of how private and public investors are cooperating in these challenging times. In a year or so, we can hopefully look back at this time and see that Propel Capital in a very concrete way contributed to more companies surviving and growing strong, says Pär Hedberg, founder and CEO of Sting.
− We have a large portfolio of promising companies and the expansion of Propel Capital gives us a fantastic opportunity to support them in a time of uncertainty and limited capital access, says Maria Ljungberg, CEO of Propel Capital, which is Sweden’s most active private seed investor in terms of the number of investments.
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