Greater scope for Almi Invest to be an active investor in innovative companies
The Government has decided to change the requirements on Almi Invest’s operations to facilitate investments in new and existing innovative companies. The measure is part of the Government’s efforts to facilitate the supply of capital to companies and reduce the economic consequences of the virus outbreak.
Almi Invest, which is part of Almi Företagspartner AB, invests in innovative companies and startups throughout the country. Almi Invest makes approximately 50 new investments annually and its portfolio contains almost 350 companies in various sectors.
Today, there is a requirement that every investment be matched with at least an equal amount of private risk capital. In the current situation, as the crisis severely affects all markets and the majority of companies, there is a major risk of private actors withdrawing from higher risk investments, even in companies that would be able to resolve their financing under normal circumstances. In these situations, there is an increased need of market-supplementing capital, which Almi can offer.
The Government has therefore decided to lower the co-financing requirement to 30 per cent, which will make it possible for Almi Invest to take a greater share of the investments. Almi Invest will be given better conditions for supporting existing portfolio companies where follow-up investment is needed, but also for investing in new companies that apply to Almi to resolve their financing. The change will enter into force on 1 May 2020.
“With this change, I expect Almi to act proactively and contribute to bringing about financing solutions. It is also important that Almi takes active owner responsibility in the companies in which it invests and takes advantage of the values that exist in the very unusual situation in which we find ourselves,” says Minister for Business, Industry and Innovation Ibrahim Baylan.
The measure is among the initiatives being taken by the Government to facilitate companies’ access to financing. Other initiatives already presented by the Government are credit guarantees via the Swedish National Debt Office to stimulate bank loans to small and medium-sized companies, additional funds of SEK 3 billion to Almi Företagspartner for increased loans to companies, and increased export credits through the Swedish Export Credit Corporation and the Swedish Export Credits Guarantee Board.