Venture capital

1. What is venture capital?

Venture capital is the collective term for capital invested in a company, where the investor is given shares in return for his investment. The term venture capital also covers the company's equity.

2. What is a venture capitalist?

In general, there are two types of venture capitalists:

• Venture capital companies: Companies which invest in other companies by receiving shares in return for their investment.
• Business angels: Private individuals who use their own personal funds to invest in small high-growth companies or new start-ups.

The venture capitalist invests in companies with growth potential. These are often newly started limited companies which are at a certain technical level. The idea is to earn income by selling the company after a certain period, for example.

3. How do I make contact with a venture capitalist?

It is not always easy to make contact with venture capitalists, although there are ways - via Connect Sweden, for example. This is a non-profit association which connects companies with growth potential, entrepreneurs and innovators with venture capital Connects can be found throughout Sweden.

4. When does a venture capitalist invest in a company?

A venture capitalist invests in a company when it has high-growth potential in a national and/or international market. Business angels may invest at an earlier stage and subsequently hand over to a venture capital company.

5. What type of controlling interest does a venture capitalist have in my company?

A venture capital company may have high requirements regarding control. They come in as owners and normally demand a seat on the board. Business angels usually also expect to have a controlling interest in the company.