Seed Capital closes third fund on DKK 819m

Surpassing its initial target of DKK 750m, Seed Capital told unquote" it had found it necessary to turn down some of the LPs hoping to invest in the fund. When Seed Capital III launched in June 2015, the VC said it did not wish to raise a fund significantly above its target.

A spokesperson for Seed Capital said the high demand for its third fund was due in particular to the strong performance of Seed Capital II. The VC's DKK 682m second fund has returned a profit to investors for four years running and posted bottom-line returns of around DKK 200m in 2015. The performance is driven in part by major funding rounds for the fund's portfolio companies Vivino and Trustpilot and exits such as the VC's largest ever: the £87.5m trade sale of Endomondo.

The fund will follow the same model as previous vehicles, with a 10-year lifespan extendable by an additional three years, and an investment horizon of four years from its launch, plus one potential extension year.

Investors
Seed Capital III raised commitments from 10 Danish institutional investors and a high-net-worth individual, including five new LPs. The fund's investor-base includes Danish pension funds ATP Private Equity, Sampension and PFA Pension – the latter two of which have not previously invested with the VC.

Additional LPs include Danish government growth fund Vækstfonden; private foundation Augustinus Fonden; Dansk Vækstkapital, which committed DKK 150m to the fund; foundation CL Davids Fond og Samling; Pre-Seed Innovation; Coloplast heir Niels Peter Louis-Hansen; the private equity arm of the Villum and Velux foundations, VV Private Equity; and Novo.

Investments
The fund will follow the same strategy as the VC's previous vehicles, making early-stage investments in Danish IT and medtech startups.

So far, Seed Capital III has invested in Templafy and a DKK 25m series-A for Bownty. The VC said it expects to make additional investments in 2016.

People
Seed Capital – Ulla Brockenhuus Schack (managing partner).

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