Framfab Ventures will focus its investments on technology, media, telecom companies from start-up stage to pre-IPO.
The new fund will have SEK400m (E48m) to play with initially, but Framfab veteran Ken Ceder, chosen to head the new operation, says European investors will be invited to invest early next year when the fund is re-opened.
Mr Ceder is unfazed by the recent volatility of Internet-related stock on public markets:
“I see the volatility as a great opportunity for us. As other investors take their money elsewhere, it will leave great companies for us to invest in,” he told PrivateEquityOnline this morning.
While Mr Ceder expects a strong domestic deal flow, he wants the fund to build a pan-European portfolio. He is particularly keen to establish a presence in Germany, where he expects the hi-tech segment of the proposed iX exchange based in Frankfurt to act as a magnet for European entrepreneurs.
He also says Framfab Ventures has no current plans to enter the “overcrowded” US venture capital market.
Framfab, which will provide 75% of the fund's seed capital, has established itself as a leading European player in the e-consultancy market. Its impressive client list boasts 3M, AstraZeneca, AXA, Bosch, Ericsson, France Telecom, Nike Europe and Tele Danmark.