Nordic VC funds claim 13% annual return in performance index

With annual net returns of 13.2%, the index has substantially outperformed overall European venture funds, where the average net IRR of European VC firms has been negative between 2003 and 2013, according to Active Venture Partners.

NVPI was created by Henrik Talborn at the Stockholm-based research institute Swedish House of Finance, and is based on return figures provided by eight Nordic-based venture capital funds: Northzone, Creandum, Sunstone Capital, Seed Capital, Verdane Capital, Viking Venture, Open Ocean and Conor Venture Partners. The index covers 26 funds and 515 portfolio companies over the 2000-2014 period.

Over the measured period, the NVPI has outperformed the public market equivalent indices Nordic Small Cap Index and Nasdaq 100, which have had net annual returns of 12.8% and 11.4%, respectively.

The index also revealed the substantial impact on fund performance by high-value tech successes such as Spotify, Trustpilot, iZettle and Klarna: just eight companies account for 40% of the total value creation, while 23 companies are needed to make up 60%.

According to NVN, 75% of the funds in the survey that are older than three years show positive returns.

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• Topics
• Nordics
• Performance
• Venture
• Venture
• Creandum
• Northzone
• SEED Capital
• Verdane Capital Partners
• Sunstone Capital A/S
• Viking Venture A/S
• Sweden
• Denmark
• Norway
• Finland
• Iceland
• Nordic venture