Scandinavian Financial Management

1
Scandinavian Financial Management

• Private capital for technology based and
  knowledge intensive new companies

2
Scandinavian Financial Managemet

• SFM was founded 2001
• Focus on Intelligent Venture Capital
• 12 partners (8 working partners) 2 senior
  advisors
• Business and Engineering degrees
• Only private Business Incubator in Goteborg
• Experience from both established and start-up
  business, in a number of industries.

3
Positioning
4
Failure to Bridge the Valley

• Lack of commercial focus
• Secrative founder/inventor
• No Bread Butter product/s
• Whats hot and whats not.

5
Company Development
Valuation/ Phase
Equity Gap
Business Angels
Funds
Darwinian Sea
Idea
Valley Of Death
Time
INCUBATOR (Early Stage)
ACCELERATOR (Later Stage)
6
Building bridges

• Not only cash
• Add commercial know-how
• Bring confidence and partner-feel to
  founder/inventor
• Shift from technology focus to profitability
  focus
• Provide proof of interest

7
Company Development
Valuation/ Phase
Equity Gap
Business Angels
Funds
Darwinian Sea
Idea
Valley Of Death
Time
INCUBATOR (Early Stage)
ACCELERATOR (Later Stage)
8
Failure to Swim

• Management failure Skills Focus
• Technology failure Reality Bites
• Alternative business models Cash flow
• Conservative/Imature market Education, not
  business

9
Crossing the Sea

• Managerial skills
• Resource planing and handling
• Network
• Commercial
• Financial

10
Private Financing Resources

• Early Stage
• Business angels
• Unorganized
• No screening capability
• Lack of participation

11
Private Financing Resources

• Later stage
• Funds
• Early stage companies are to small
• Management/Cost paradox
• Capital requirement to small decadence
• Fund to small to maintain management costs
• Example
• 5m fund 150k management fee (3)
• 150 2 people cost of operations
• 220 k average investment 20 investments 600k
  buffer.
• 10 companies per person fund management and
  reporting.
• .

12
SolutionHow to fill the equity Gap

• Early stage
• Build private investor networks (Expensive)
• Public financing to cover network management
  costs.

13
SolutionHow to fill the equity Gap

• Later Stage
• Fund investors (Remember the Paradox)
• Public financing to cover cost of management
  team.

14

• Thank You!
• mats.lind_at_sfmab.com