
Nordic Secondary Fund
Description
Nordic Secondary Fund (NSF) is a pioneering investment vehicle, uniquely positioned as the first and only dedicated secondary fund operating across the Nordic and Baltic regions. Based in Copenhagen, Denmark, NSF's core mission is to provide crucial liquidity to early investors, founders, and employees in successful technology companies within these burgeoning markets. Unlike traditional venture capital funds that primarily inject fresh capital into companies through primary rounds, NSF focuses on acquiring existing equity stakes, thereby offering an exit path or partial liquidity to those who have contributed to a company's early growth. This distinct approach addresses a significant need in the European tech ecosystem, where liquidity options for early-stage investors and employees can often be limited.
The fund's investment strategy is sharply defined, targeting companies that have already demonstrated significant traction and maturity. Specifically, NSF looks to invest in tech companies that have successfully raised a Series A funding round or later, indicating a proven product-market fit and a robust business model. Their geographic remit encompasses the vibrant startup ecosystems of the Nordic and Baltic countries, including Denmark, Sweden, Norway, Finland, Iceland, Estonia, Latvia, and Lithuania. By focusing on post-Series A companies, NSF aims to de-risk its investments, ensuring it acquires stakes in businesses with established operations and clear growth trajectories.
Nordic Secondary Fund I (NSF I) successfully closed at DKK 750 million in 2022, equivalent to approximately $100 million USD, underscoring significant investor confidence in their specialized model. This substantial capital pool enables them to execute their strategy effectively. When acquiring stakes, NSF typically targets individual company positions ranging from DKK 5 million to DKK 50 million. This translates to an approximate check size of $0.7 million to $7 million USD, offering flexibility to acquire various sizes of equity positions.
By facilitating secondary transactions, Nordic Secondary Fund plays a vital role in fostering a more dynamic and liquid venture ecosystem in the Nordics and Baltics. Their presence provides a valuable mechanism for wealth creation and capital recycling, allowing early backers to realize returns and potentially reinvest in new ventures, thus stimulating further innovation and growth across the region.
Investor Profile
Nordic Secondary Fund has backed more than 28 startups, with 5 new investments in the last 12 months alone. The firm has led 8 rounds, about 29% of its total and boasts 4 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Secondary Market, Series Unknown, Private Equity rounds (top funding stages).
- Majority of deals are located in Denmark, Sweden, Finland.
- Strong thematic focus on Software, E-Commerce, FinTech.
- Led 4 rounds in the past year.
- Typical check size: $700K – $7M.
Stage Focus
- Secondary Market (86%)
- Series Unknown (7%)
- Private Equity (4%)
- Series A (4%)
Country Focus
- Denmark (25%)
- Sweden (18%)
- Finland (18%)
- Latvia (7%)
- United States (7%)
- Germany (7%)
- Lithuania (4%)
- Iceland (4%)
- Estonia (4%)
- United Kingdom (4%)
Industry Focus
- Software
- E-commerce
- Fintech
- Payments
- Logistics
- Financial Services
- Augmented Reality
- Hardware
- Consumer Electronics
- Drones
Frequently Asked Questions
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