Stockholm is the centre for the game studio-founders new fund.
The men behind Candy Crush Saga, Sebastian Knutsson, Thomas Hartwig, Patrik Stymne, Riccardo Zacconi and Lars Markgren have gone below the radar with their new investment fund. The company, Sweet Capital, will be led by the Danish co-founder Christian Dörffer. The company is looking establish itself in Sweden as a first market.
“Stockholm is our home market really, along with London, where we will establish an office soon”, Christian Dörffer says.
Most of the King-founders’ startup investments will be channeled through Sweet Capital. As a start, the company has just north of $10 million to invest in startups, but that number is expected to grow quickly.
“Our plan is to expand the fund, and it will get significantly bigger. I don’t want to go into financial details, but we have large economic resources available if we find a company that we believe in”, Christian Dörffer says.
On average, the fund will invest just above $1 million, but will also participate in Series A-rounds between $3 million and $5 million.
“We usually want 5-7 percent of the company when we enter in a seed round. We’ve made five investments so far and we expect invest in five more companies in 2016”, Christian Dörffer says.
Dörffer and some of the King-founders will introduce the new fund to the startups at the startup hub SUP46, in February. The goal is to raise awareness about the company in Sweden. The company has yet to invest in any Swedish startups but that is about to change.
“There’s a reason behind our focus on Stockholm. We think that there are a lot of interesting companies here, and the guys from King have a great network here. I think that we’ll have a portfolio with about ten Swedish companies in a few years time”, Christian Dörffer says.
He also says that the company will focus on long term investments.
“We are operating with a large timeframe with Sweet Capital. This is a way for the King-founders to involve themselves in startups and give something back to the ecosystem”, Christian Dörffer says.
Why did you call the company Sweet Capital?
“We were looking for a synonym for Candy Crush, which we couldn’t use. The british word for candy seemed like a good idea. Most VC firms have such boring names. We wanted to mediate our playfulness, because that’s what we like to do, play.”