Investment process
Industrifonden analyzes a number of business plans and investment proposals on a weekly basis. Some arrive unsolicited. Others are the result of active efforts to find interesting companies as possible investments.
Analysis
Every investment decision is preceded by an analysis and evaluation to determine the feasibility of the company's business plan. This includes visits to the company, an assessment of its management and board, an estimate of the market, and an analysis of the company's strategy, technology and financial situation. This work is done by Industrifonden’s investment managers in cooperation with other investors, if necessary together with outside experts, and normally takes two to four months.
Decision
At that point the particular business area decides whether or not Industrifonden should proceed. If the answer is yes, the investment manager conducts a more thorough analysis before a final decision is made by Industrifonden’s investment committee. In the case of major investments, the decision is taken by Industrifonden’s board of directors.
Agreement
If Industrifonden decides to invest in the company, it drafts a detailed shareholder agreement stipulating the relationship between Industrifonden, co-investors and other owners. The aim is to find the right financing structure and ensure that owners and management are working toward the same goals.
Ownership commitment
Then begins a process that demands time and resources to develop the company and maximize its value. This is done through work on its board of directors, where Industrifonden is represented by the investment manager or the right person from its extensive professional network. In addition to board work, the fund assists the managements of its portfolio companies at the operational level based on their needs.
Exit
Industrifonden’s investments are always limited in time, normally lasting five to ten years. The exit can be achieved through a sale to an industry player or an IPO. Venture capitalists also sell their holdings to other financial firms.