Swedish Startup Space

His Company Sold For $24 Million – Time To Invest

Written by on April 21, 2016

Last fall, Mikael A. Pettersson sold his second company, AdX Search. The money will now be put to use in new startups.

Last week Di Digital, reported that hte gaming company Funrock raised a $800,000 (6.5 million SEK) seed round. Mikael A. Pettersson and his business partner and mentor Tommy Jönsson accounted for  almost $300,000 (2.5 million SEK) of the seed round, in which the company was valued at $4 million (34 million SEK). That is before the company has even released its first game.

“I have been interested in the gaming industry for quite some time. Gaming companies are popping up all the time, but Funrock really takes the strategy genre to the next level in mobile”, Mikael A. Pettersson says.

He started his career in the digital industry with the translationservice Tyda, which is now owned by Nyheter24 Group, where he was the investor and business developer.

“We made a translation service from English to Swedish and Swedish to English. We sold the company just before we started AdX. We found out that Google was going to make Google Translate, so we sold when we got the chance”, Mikael A. Pettersson says.

For almost nearly ten years he ran the adtech company adX Search, which according to Mikael A. Pettersson has been named one of the world’s best tools to maximize profits at Google advertising.

Last fall, he sold the company to the American marketing platform Gravity 4. The total pricetag landet at around $24 million (200 million SEK), of which 70 percent were paid in shares in the American company.

“The acquisition is designed in such a way that we, the sellers, got 70 percent of the total sum in Gravity4 shares at a large discount to the excpected IPO valuation. The IPO will probably take place sometime in 2016 or 2017”, Mikael A. Pettersson says.

How much of the money Mikael A. Pettersson will receive is unclear, but it is enough to start a career as an angel investor. He took a few steps in that direction, while he was working at AdX. He has invested in the app building tool Didmo and in a coupon service called Vouper.

“I’ve made a few investments already, but it will be on a more professional level now. I will make maybe 2-3 investments per year going forward”, he says.

What kind of companies do you invest in?

“I’m focusing on exciting projects related to Internet and mobile. For example, I am now starting a company called Ideafusion”, said Mikael A. Pettersson.

Ideafusion works a bit like LinkedIn but has focused on connecting students and businesses, rather than professionals in general. Unfortunately, LinkedIn seems to have thought of that idea itself and made has recently made its own app for college students in the U.S.

The fact that Mikael A. Petterson is the co-founder of a company does not mean that he becomes less active in the companies he invests in.

“I will be very active in the companies and not just sit back and see how it goes. When I look back at the time with adX Search there were many challenges during the seven years. It all ended well but I hope that I can contribute to other companies that are experiencing the challenging processes I’ve been through”, he says.

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