After more than 13 years in the venture capital business, delivering strong returns and building world leading niche companies, Incitia Ventures has decided to discontinue its current activities. This will be effective from July 1st 2014.
Incitia Ventures was established in 2001 to invest in Nordic venture capital and quickly established itself as a leading player in the market. In 2007 Incitia raised its second fund with a broader base of local investors. From its inception, Incitia has invested in 18 early growth and venture capital companies within the Nordic technology sector. The first fund achieved a gross fund multiple-of-cost (MOC) of 2.5x and an IRR of 20%. We are very proud to have participated in building world leading niche companies like Algeta, Easy Park, Falanx, Sense EDM and T-VIPS. The trade sale of Algeta (a company where we took a leading role) in March of this year valuing Algeta at USD 2.9 billion represented one of the three largest VC exits in the Nordics the last 10 years.
We had initially decided to raise a third fund from existing and new European investors. In the later part of 2013 our cornerstone investor, Selvaag Invest, decided not to continue its involvement with venture capital. For this and our own personal vision for venture capital we decided to wind down the remaining portfolio. Effective July 1st 2014 it has been agreed that Contango Kapital AS will assume the management of the remaining four portfolio companies in the second fund. We are confident that Contango will continue developing and realizing the remaining portfolio companies to ensure a successful outcome for the fund.
Having developed Incitia over the last 10 years, the two of us will now pursue different paths:
- After more than 16 years as a venture capitalist and having been the entrepreneur and founding partner of Incitia Ventures, Jens Petter has decided to take a short break before continuing his involvement Nordic venture capital through Incitia or another vehicle.
- In August, Erik will start in a new position as Investment Director in the Financial Institutions area in Norfund (The Norwegian Government’s Investment Fund for Developing Countries). He will be applying the investment and active ownership experience gained from Nordic technology firms to banks and microfinance institutions in frontier (pre-emerging) markets in Africa, Southeast Asia and Central America, i.e. going “from Venture Capital to Venture Countries”. The objective is to make investment returns while helping developing countries to build profitable and sustainable financial institutions.
We thank you for all dealings we have had with you over the last 13 years and look forward to continuing our relationship going forward.
Jens Petter Falck Erik Sandersen