• 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

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The background for the proposal is that the many venture capital funds associated with the IT boom are no longer active, according to Wallenberg and Löfven.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
'The concept of race is a slippery slope': Ullenhag
Integration Minister Erik Ullenhag. Photo: Pontus Lundahl/TT

'The concept of race is a slippery slope': Ullenhag

Integration Minister Erik Ullenhag tells The Local why he plans to remove the term "race" from all Swedish law, how he responds to his critics, and why Sweden must steer clear of xenophobia. READ  

Northern Dispatches
How I tackled northern Sweden's savage insects

How I tackled northern Sweden's savage insects

Ex-Londoner Paul Connolly has just survived a northern Sweden heat wave. But it wasn't the high temperatures that were the real problem, he recounts. READ  

Railway fatalaties on the rise in Sweden
File photo: Carl Dougge/Flickr

Railway fatalaties on the rise in Sweden

Even though Sweden's Traffic Agency has drastic plans to reduce the number of people killed by trains in Sweden, a new report shows that figures are on the rise. READ  

Woman finds Ikea bags stuffed with 80 skeletons

Woman finds Ikea bags stuffed with 80 skeletons

UPDATED: A woman in southern Sweden is furious after stumbling upon scores of skulls and human bones inside Ikea bags in a church. The man who dug up the bones, however, says it's not as bad as it looks. READ  

Swedish Wikipedia jumps to second biggest

Swedish Wikipedia jumps to second biggest

There are now more Swedish Wikipedia entries than any other language in the world, besides English. And there's one Swede who's largely responsible. READ  

Assault with iron pipe 'no hate crime': police
The aftermath of the attack in Seved, Malmö on July 6th 2014. Drago Prvulovic / TT

Assault with iron pipe 'no hate crime': police

Police in southern Sweden have concluded that a man who was beaten with an iron pipe for hanging an Israeli flag in his window was not a victim of a hate crime. READ  

AstraZeneca hikes earnings outlook

AstraZeneca hikes earnings outlook

After fighting off a fierce takeover bid from Pfizer, Swedish-British drugmaker AstraZeneca raised its 2014 earnings outlook and posted rising second quarter sales on Thursday. READ  

Race to be scrapped from Swedish legislation
Integration Minister Erik Ullenhag meets children in Husby, Stockholm. Photo: Jonas Ekströmer/TT

Race to be scrapped from Swedish legislation

The Swedish government announced that it plans to remove all mentions of race from Swedish legislation, saying that race is a social construct which should not be encouraged in law. READ  

US aircraft 'violates' Swedish airspace

US aircraft 'violates' Swedish airspace

A mystery airplane that passed over Swedish airspace recently has been revealed as an American aircraft, sources revealed on Thursday. READ  

Elite schools stripped of 'special' privileges

Elite schools stripped of 'special' privileges

Sweden's three elite boarding schools can no longer charge tuition fees, the government announced on Thursday, in a string of changes following a two-year review. READ  

Stockholm demonstration against Israel
Stockholm Pride bars Sweden Democrats
Gender neutral pronoun 'hen' enters dictionary
Top ten cafes in Stockholm
People-watching - Stockholm Pride
Blog updates

31 July

Calling a speedo a speedo (Blogweiser) »

"There are a lot of speedos on Europe’s beaches. Some European males are evidently more comfortable sporting small, stretchy suits on public beaches than I would be. I accept it may be nice to have swimwear that’s not long and cumbersome. A speedo is maybe also good for tanning. But strolling around town in a..." READ »


27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »

Photo: Henrik Trygg/Imagebank Sweden
Sweden worst in EU at getting foreigners jobs
Stockholm Pride kicks off
The top six ways the US and Sweden differ
Swedish youth suicides hit 25-year high
Politician reported for selling 'negro ball'
Police turn blind eye to Swedish 'slave trade'
Stockholm Pride: Allsång på Skansen with Conchita Wurst
Sponsored Article
Introducing... ID cards and permits in Stockholm
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Top ten Swedish taboos
Seven-year-old Swede cycles to Berlin
'Gaza conflict needs help, not empty rhetoric'
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
What's On in Sweden
People-watching July 23
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

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 Denmark

More news from Denmark at thelocal.dk

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

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:
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at: