Venture capital facilitates the transition from industry to services

The ALMI Invest Northern-central Sweden project is working to assist small and medium-sized enterprises in Dalarna and Gävleborg counties in obtaining venture capital. At the same time the companies are also given help in the areas of skills, network contacts and experience.

Business in Dalarna and Gävleborg is characterised by steel, the engineering industry, forestry and the food industry. A gradual transition is now underway towards more knowledge- and service-based production, including IT companies and a larger tourism industry.

For example, ALMI Invest has invested in the Falun-based consultancy and systems development company PrifloatAB, whose business concept is to deliver management information for business development. That capital injection is now enabling the company to continue its growth.

“We view PrifloatAB as a very interesting company with great growth potential both nationally and internationally," says Christer Navjord, MD of ALMI Invest Norra Mellansverige AB.

An investment has also been made in GeoIntel Systems AB, a company in Gävle, which supplies modern solutions and software platforms in the area of geographical information systems (GIS). The company can now use its capital increase to accelerate its commercialisation with the aim of becoming an important actor, primarily in the Nordic market.

“This development work is going well," says Mr Navjord. "There are interesting companies and good investment partners. But the work takes time. Many pieces must fall into place before you can make a good investment."

ALMI Invest works through regional venture capital companies that are owned along with regional actors, such as municipalities, county councils and regional development councils, and works in teams of investment managers who have a strong footing in local business community.

Read about the project in Swedish