Little Mermaid statue, Copenhagen. Image: © visualpower/Stock.adobe.com
Initial €100m fund from ByFounders is backed by a constellation of investors.
A new venture capital (VC) fund has been created by early-stage player ByFounders that will have €100m available to support the next generation of Nordic and Baltic tech start-ups.
The fund is backed by the founders of some of the region’s most successful tech firms including Skype, Zendesk, Kahoot, Unity, Tradeshift, Sitecore and Vivino.
‘It’s natural for every tech ecosystem to compare itself to Silicon Valley but the Nordics has established itself as a true birthplace for unicorns and high-growth companies with numerous billion-dollar exits’
– TOMMY ANDERSEN
The money, as well as the deep knowledge, could prove vital assets as a gateway into Silicon Valley and other markets around the world.
Knowledge, expertise and insight
“ByFounders provides early-stage founders with unrivalled access to knowledge, expertise and insight from some of the most successful Nordic entrepreneurs,” explained Zendesk co-founder Morten Primdahl.
“The support and operational guidance available from such a broad group is unique and has the potential to play a major factor in the success of the next generation of start-ups from the region.”
ByFounders was established by founders and industry veterans Eric Lagier and Tommy Andersen.
The fund’s largest investor is the Danish Growth Fund, one of the most active funds in the Nordics region. ByFounders also gained significant support from global funds including Isomer Capital, Draper Esprit and Digital Garage, as well as Danske Bank and a number of prominent family businesses from the Nordics.
The fund’s sweet spot will be seed and occasional Series A rounds.
ByFounders has already invested in 11 portfolio companies: Corti, Peergrade, Simple Feast, Cobalt, Spiio, SafetyWing, DrugStars, Omnio, Qurasense, Tame and Uizard.
The fund said it plans to make a further 30 investments over the next three years.
It has offices in both Copenhagen and San Francisco that will help act as a springboard for founders who wish to either move to Silicon Valley or scale from the Nordics.
“It’s natural for every tech ecosystem to compare itself to Silicon Valley but the Nordics has established itself as a true birthplace for unicorns and high-growth companies with numerous billion-dollar exits,” explained Andersen, managing partner at ByFounders.
“The region can and will compete with any other place in the world when it comes to fostering and growing companies, and I believe the opportunity for large exits will only increase over time.”
