Frumtak closes ISK 5bn second fund

Until Frumtak 2 and two other funds were raised in February, Frumtak's first fund had been the only traditionally structured venture fund in Iceland.

The VC's previous fund, Frumtak, was established in December 2008 and was fully invested by the end of 2012. Frumtak 1 has invested in 15 companies, of which nine remain in its portfolio.

Investments
The vehicle will make seed and expansion investments in Icelandic startups, and will consider investments outside of the country in order to aid international expansion of its portfolio companies.

Frumtak 2 will commit equity tickets in the range of ISK 100-500m, with no single investment exceeding 15% of the total capital commitments to the fund. Exceptions may be made with permission from the fund's board.

The fund aims to invest with a three to five-year ownership horizon. Frumtak is targeting a minimum yield of 30% on each individual investment.

Investors
Frumtak will commit capital to Frumtak 2 alongside Landsbanki and a number of Icelandic pension funds and life insurance companies.

People
Eggert Claesen is the managing director of Frumtak and Swan Gunnarsdóttir is an investment manager.

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