Founder Johan Lundberg is counting on bringing in at least five new tech start-ups to his portfolio before the end of the year. To handle the increased tempo the venture capital firm will hire more staff, and start looking for money for it’s next investment fund.
NFT ventures was established 2014 and has since invested in a number of Swedish tech companies, among other Tessin, Toborrow, Lånbyte and Leasify. The common denominator is that all these companies are operating in the fintech industry, namely innovations which are changing the financial sector.
“What differs us from other venture capital firms is that we are dealing with just one sector. We have the know-how when it comes to financial transactions and the ecosystem around them. There are many venture capital firms that don’t quite understand that sector, which is understandable since they must have a grip on all businesses simultaneously”, Johan Lundberg says.
So far, NFT has made 15 investments of which 10 have been announces. The latest were counseling services Pensionskraft, which we reported about a week ago(Article in Swedish).
Johan Lundberg is increasing the tempo now. Before year’s end, at least five more companies are to enter the portfolio. Further, NFT-founders are trying to raise money for the company’s second investment fund, in order to invest in even more companies in 2016.
The money in NFT: s initial fund was mainly from media conglomerate Bonnier, which the venture capital firm has close collaboration with. Johan Lundberg does not want to reveal how significant the next funding will be, but he says that he will be looking for new investors other than Bonnier.
On top of that, NFT are recruiting staff for their investment-team.
“I am on the hunt for several assistants willing to search for new companies and administer our present holdings”, Johan Lundberg says.
Investments will henceforth be in the area of $1.2 million per company. NTF usually takes an owner’s stake of 25-30 percent. Johan Lundberg stresses that the venture capital firm has no intentions to grab bigger shares of the companies they invest in.
“There is a difference between us and Schibsted (Bonnier’s main competitor on the Swedish media market), who gladly would want a considerably larger owner’s stake. Our goal is for the entrepreneur to become filthy rich. We want the entrepreneur to keep a significantly larger owner stake and keep on being the driving force in the company”, he says.
He believes the future for Swedish fintech is relies on startup companies daring to gamble on a strongly nisched business idea – something he is looking for while visiting the companies he meets through work.
“We ask of our companies to be extremely angular. They should be totally focused on their niche. For instance, making payment flows more efficient, or what it might be in particular. No company in the world is capable of building 500 different products while maintaining top quality. However, a company can produce a truly great product and then spread it across the world”, the NFT founder says.