A new report from Stockholm-based venture capital investor Industrifonden shows a great interest for life science companies in Scandinavia, with a total investment of $2.4bn from 2014 to the third quarter of 2016. One of several trends is that venture capital funds this year have increased focus on IPO’s, and this trend looks set to continue.
These figures and trends are reported in Scandinavian Life Science Funding Report, 2014-2016, commissioned by Industrifonden, which has 15 life science companies in its portfolio. The report is a thorough analysis of the investment landscape and financing activities in the sector in Scandinavia, mapping investment activities of 149 companies from 2014 to the third quarter in 2016.
The report shows that Swedish venture capital investors Industrifonden and HealthCap dominate the Scandinavian venture capital space. Another clear trend is that Nasdaq Stockholm increasingly dominates the public capital raising, and that the investment climate in Sweden attracts more and more Danish companies to list there.
– What we find most exciting is that the investment climate in the Scandinavian life science sector is so favourable, and that the total capital invested amounts to $2.4bn during the period. This means that Scandinavia is on par with large European market places such as the Paris Stock Exchange, says Nina Rawal, Head of Life Science at Industrifonden.
The report includes both public capital raising activities in connection with IPOs and new issues at the market places Nasdaq Stockholm, Oslo Axess, Nasdaq Copenhagen, Nasdaq First North and AktieTorget, as well as investments made by venture capital investors focused on the life science sector.
Venture capital investors accounts for $273m of the total investments, of which Industrifonden and HealthCap together accounts for 40 per cent. The report also shows that venture capital investors increasingly focused on listing their portfolio companies in 2016.
– Listings are rarely direct exits, but rather a means to secure large financing as well as creating conditions for companies to develop into enterprises that stand on their own feet. In the good market conditions that prevail, 57 per cent of the companies that were listed during the period had a positive price trend, says Nina Rawal.
The report also shows that the positive investment climate in Sweden attracts investors and life science companies, and Nasdaq Stockholm dominates the public funding with nearly $1bn in life science capital raises.