• Sweden edition
 

Swedish state should focus on venture capital: report

Published: 04 Apr 2010 09:34 GMT+02:00
Updated: 04 Apr 2010 09:34 GMT+02:00

The Swedish state should focus on developing new investment funds for risk capital as well as seeking out international and national capital, according to a proposal from SEB bank chairman Marcus Wallenberg and IF Metall trade union chairman Stefan Löfven, among other economic experts.

A lack of capital is the biggest hindrance to economic growth and a surplus of venture capital is necessary if innovative companies are to be able to grow and provide jobs, Wallenberg and Löfven write in an article published in Dagens Nyheter newspaper, referring to a Sifo survey.

They estimate that if the Swedish state invested 5 billion kronor ($688 million) in venture capital funds it would lead to additional investment of at least double that amount.

The background for the proposal is that the many venture capital funds associated with the IT boom are no longer active, according to Wallenberg and Löfven.

There are several conditions for how the state should run such a fund - the fund's investment team should focus on Sweden to ensure that it invests in “innovative companies in Sweden” and that there is a possibility for “the possibility of high returns and a level of risk that distinguishes high-quality venture capital funds.”

The co-authors of the editorial are general director of Vinnova innovation agency Charlotte Brogren; chairman of Provider Venture Johan Hernmarck; general director of the Swedish Agency for Economic and Regional Growth (Tillväxtverket) Christina Lugnet; and the managing director of engineering academy Björn O Nilsson.

TT/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

18:14 April 4, 2010 by SWOT
After Swedes wasted all the local wealth in their social welfair system, they finnally need to beg to foreign investors.
22:26 April 4, 2010 by wxman
Doesn't sound very socialist to me. Sweden may want to rethink this!
03:25 April 5, 2010 by here for the summer
Strangely Sweden is both socialist and capitalist. So this fits .. @Swot . If I read this correctly Sweden wants to invest part of it's own money, This would be a good idea. Norway already does this as do many states in the US.
09:28 April 5, 2010 by Nemesis
This is a very good idea.

I would suggest more reform to help small business's in Sweden and to allow them to grow.

Sweden has a very good technological base, which is not properly capitalised upon at present.

Also R&D needs to have 100% tax relief in Sweden. Sweden is a small economy so can not compete on scale, so must out innovatate which Sweden does very well at present.

More integration between small to medium sized business's and university research departments would really boast this economy in the long term and help to establish growth and maintain it in the long term.
14:00 April 5, 2010 by SWOT
The question is if the Swedish state have this budget to invest in R&D, and if the budget is enough. R&D is pure labour intensive. Then 50% of labour cost from the capital would go back to the social welfare system by tax. The statement of this artical is the state should invest in venture capital, but the question is if they would do it. Swedish companies and institutes always have a big machine to feed, they call it administration. You never know how much the administration will cost if you do not manage it by yourself. When the venture capital are settled in a project, maybe only about 30-40% of the money can be really used for R&D. This is a bad cycle run for many years.
13:29 April 6, 2010 by 1000penguins
The Swedish government has already committed 3bn SEK to invest in innovative Swedish companies within the transport sector (fordon). The capital is administered in private equity fashion, but mainly taking minority stakes.
Today's headlines
Police seeking missing Swede in London
Sofie Marie Jansson, who is currently missing in London. Photo: Metropolitan Police

Police seeking missing Swede in London

British police have issued a plea for tips in the search to find Swedish national Sofie Marie Jansson who hasn't been seen for almost a week. READ () »

University applications rocket to record high

University applications rocket to record high

Swedish universities continue to draw vast amounts of applicants with the number of prospective students seeking a third level education increasing for the seventh year in a row. READ () »

Man jailed in US over Lars Vilks murder plot
Swedish artist Lars Vilks pictured in New York in 2012. Photo: Linus Sundahl-Djerf/TT

Man jailed in US over Lars Vilks murder plot

American authorities have sentenced a 20-year-old accomplice of 'Jihad Jane' to five years in prison for an attempted terror plot to kill Swedish artist Lars Vilks, after getting involved with the murder plans when he was a teenager. READ () »

Sweden scraps 'new start zones' after EU input
Integration Minister Erik Ullenhag visits a school in Tensta, one of the neighbourhoods mentioned when he and his colleagues first floated the new start zone proposal. File: TT

Sweden scraps 'new start zones' after EU input

Sweden has abandoned a plan to ease taxes for small companies in blighted areas after the European Commission challenged its legality. READ () »

'Easter eggs an invitation to spread germs'
A typical Swedish Easter egg. Photo: Jessica Gow/TT

'Easter eggs an invitation to spread germs'

A Swedish microbiologist has warned that traditional Swedish Easter eggs laden with candy are an open invitation to the spread of bacteria and viruses. "Is this really a good idea?" he asked. READ () »

Jammed truck snarls Stockholm rush hour
Photo: Anders Wiklund/TT

Jammed truck snarls Stockholm rush hour

PICTURES: A truck got wedged inside a tunnel in central Stockholm on Thursday, with authorities concerned the accident may have damaged cables in the tunnel's ceiling. READ () »

Kids in Victorian garb mark Swedish Easter
A Swedish Easter witch holding daffodils. File photo: TT

Kids in Victorian garb mark Swedish Easter

In India, I'd notice Easter only from the traffic jam outside the churches, but here witches, egg hunts, and feathers mark the Christian holiday. The Local's Deepti Vashisht brings you the various shades of Swedish Easter. READ () »

Swedish MP ordered chemtrail probe
Chemtrails?: Shutterstock.

Swedish MP ordered chemtrail probe

A Swedish MP who launched an official government investigation into the existence of chemtrails tells The Local why he thinks Swedes deserve the truth, even if it may leave some conspiracy theorists unsatisfied. READ () »

PM pleads ignorance of Vattenfall's Nuon bid
Fredrik Reinfeldt answers the constitutional affairs committee's questions. Photo: TT

PM pleads ignorance of Vattenfall's Nuon bid

Sweden's prime minister on Thursday said Vattenfall itself, not its owners the Swedish state, had responsibility for the loss-making Nuon deal. READ () »

'Kockums submarine raid may be illegal': lawyer
Photo: TT

'Kockums submarine raid may be illegal': lawyer

A Swedish lawyer says the Swedish military may have broken the law when it raided the Malmö premises of German defence giant Thyssen Krupp. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Society
Swedish supermarket Ica pulls contested Easter commercial off air
Kungahuset
Society
Swedish royals set baptism date for princess
finest.se
Gallery
People-watching April 16
Politics
Who's the prime minister's heir?
Alfie Atkins
Society
Are children's books the key to families integrating in Sweden?
National
'Sweden Dem protests cater to party's martyr image'
National
'Swedish research grants were fantastic, but now it's like Australia'
Society
Only in Sweden: The ten problems you'd never encounter elsewhere
National
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
YouTube
Features
Video: Oliver Gee finds out how to embrace The Swedish Hug
TT
National
Abba duo hints at reunion
Advertisement:
Private
National
Flash mobs hug it out across Sweden
Finest.se
Gallery
People-watching April 11-13
TT
Politics
Swedes to give six-hour workday a go
TT
Society
Aussie choir member wows Abba in Sweden
YouTube
Society
Stockholm magic a surprise YouTube hit
Fastighetsbyrån
Society
Gallery: The Local's Property of the Week
Private
Society
Swedes find 200-year-old gravestone in living room
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
Deepti Vashisht
Features
Deepti Vashisht dissects the magic of Sweden's personal ID number
Shutterstock
Society
Ten signs you've been in Sweden too long
Society
Jimi Fritze heard every word when doctors discussed taking his organs
Society
A Swedish farmer explains why the new bestiality ban is 'pointless'
ESL
Sponsored Article
Learning Swedish the easy way
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

771
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com