Jönköping boosts Sweden’s expertise in early-stage fundraising

Last week, Science Park Jönköping County held the fourth edition of its popular venture capital training programme. More than 20 participants from innovation offices, incubators, science parks and new investors gathered in Science Park Towers to learn and gain new insights on raising capital for early stage companies.

Aimed at business developers, advisors and prospective investors, the training provided a comprehensive understanding of how venture capital works and how start-ups can prepare for fundraising.

Gustav Österström, course leader and CEO of the incubator investment company Spectria Invest

The two-day event in Jönköping covered topics such as the structure of the venture capital market, the mindset of different investors and how companies can be valued before a potential investment. Participants also learnt investor jargon, i.e. different terms and expressions used by investors, as well as the importance of strong agreements and a well-functioning cooperation between companies and investors.

“When we designed the programme, we wanted it to provide valuable insights, whether the participant was new to the role or a little more experienced. It is very positive that we have had a broad mix of course participants – from newly hired business developers to business angels, incubator managers and CEOs of incubator-related venture capital companies. Several of these organisations have chosen to send more colleagues to the course over the years, which shows that the course content has been appreciated,” says Martin Harbäck, Business Developer and Operations Controller at Science Park Jönköping County.

“There is no specific model or a universal solution that always works in venture capital, but a lot is about understanding the underlying logics and what is required to be relevant in that market. In the course, we put great focus on these logics and basic insights,” adds Gustav Österström, CEO of Spectria Invest.

Martin Harbäck, course leader and business developer and operations controller at Science Park Jönköping County

Concrete understanding of the venture capital market

Through a mix of lectures, discussions and practical examples, the course offered both theoretical and practical knowledge. Participants, who had travelled to Jönköping from Malmö and Karlskrona in the south, to Borlänge further north, praised the course afterwards for its relevant content and the inspiring discussions. Many pointed to the value of working with real cases and pitches, which gave them a concrete understanding of what it takes to succeed in the venture capital market. For example, they listened to a start-up pitch from a real-life case, and after that, they fictitiously invested in the company, divided into different investment teams with a diversified focus.

“Being well prepared, knowing what is required and how the process works is important, even for innovation coaches for the very earliest ideas. Preparation and thorough groundwork on market conditions, competitors and costs are key to successfully attracting capital later. Being able to pass on this knowledge to the entrepreneurs and get them prepared to seek capital at an early stage is an important part of the coaching we provide. After the training, I am better equipped to provide this support to researchers and entrepreneurs,” says Kennet Henningsson, Innovation Office Lead at Blekinge Institute of Technology.

A startup success story and investment journey

Dan Friberg, who has previously been both business developer and CEO of Science Park Jönköping County, talked about the incubator company from 2004, which he then coached and where he later joined as CEO in 2016. Today, Infobric is valued at several billion, much thanks to successful capital raising and acquisitions of companies. Finally, participants had the opportunity to ask questions to and discuss with Jenny Engerfelt from Voima Ventures, which invests in deep tech and impact companies. Questions such as “is a 10-year time horizon enough for deep tech” and “shouldn’t the government take a bit more risk in the early stages” were raised.

“What I take with me from the programme is a broader network of both advisors and investors who are in different businesses around the country and who, with different specialisations and expertise, may be of value to some of our incubator companies during their start-up and further growth journeys. I’ve gained a more nuanced view of venture capital raising from both investor and entrepreneur perspectives and I also have a greater insight and with it a greater respect for the valuation of start-up companies that have no history or track record to rely on. It’s about future growth potential and that’s why it’s so important to have well-substantiated business cases where the business logic is connected,” says Athinna Papadopoulou, business coach at the incubator in Kalmar Science Park.

The interactive elements of the training provided a unique insight into what investors are looking for in early-stage companies, and how collaborations between startups and investors can be successful.

“It has been a very well executed programme that highlights many important areas when it comes to venture capital. The programme has strengthened my ability to coach entrepreneurs seeking investors. With this behind me, I feel even more confident in my role as a business developer when coaching young companies to raise capital,” concludes Jim Ternander, business developer Borås Ink.