Eqvitec Partners and IT Provider come together “the modern way”

Finnish and Swedish VCs Eqvitec and IT Provider have struck an alliance to strengthen their positions in the Nordic VC market. Joint investments are planned for the near future.

Nordic venture capitalists Eqvitec of Finland and IT Provider of Sweden have announced an alliance that will enable them to make investments in Scandinavia’s burgeoning hi-tech arena as if they were a single entity.

The alliance falls some way short of a full merger. However, Jukka Mäkinen, managing partner with Eqvitec, hopes the alliance will bring the benefits of a merger without the complications. “Our intention was always to act as if we were two merged companies from day one,” he said.

“It’s almost like being married without being married,” he continued. Living in sin, then? “I wouldn’t use those words. It’s the modern way.”

The two companies will begin exchanging employees on a weekly basis, adopting each others' business practices, co-sponsoring activities for portfolio companies, and working on deals together. Joint investments are planned for the near future.

Together, the two firms manage about $428m in six funds and have about $214m available for new investments.

Both have raised about $111.4m in the last six months. In February, Eqvitec announced first close of its Technology Fund II at $122m, with final close expected at $156m in June.

Eqvitec has made about 25 investments in the past two years. IT Provider-related funds have made investments in about 70 technology companies over the past ten years.