
SVCA report reveals dive in venture activity
Sweden venture capital activity is at its lowest level since 2007, according to the SVCA’s latest quarterly report.
Q3 2012 saw only 79 investments with a total value of SEK 266m. The country has seen a downward trend since Q3 2010. The SVCA says low levels of activity are a result of an under-established venture capital market rather than the lack of investment objects.
Buyout market value also fell on a year-on-year basis due to an unusually strong Q3 2011. The average is now in line with how it was before 2008.
New investments have increased since Q1 2011 and are now at 43% of committed capital. The share of private investments has increased slightly in relation to public investments during Q3 2012. A total of 24 private investments were made during the period versus 10 public.
The share of foreign investments was larger than normal in Q3, with 70% of the total amount invested coming from foreign institutions, while 52% of the total number of investments were foreign.
The SVCA believes that better conditions for venture capital in Sweden would create more jobs through encouraging entrepreneurship in the long term. According to an SVCA survey, both the venture and buyout sectors believe activity will pick up again.
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