Nordic Venture Network launches the first venture capital index with actual returns from the Nordic venture capital market since 2000. The Nordic Venture Performance Index indicates that the Nordic VC-market has outperformed the public markets and other VC-markets by producing a substantial number of high value companies since the turn of the millennium.
The annual net return for the Nordic Venture Performance Index of above 13% between 2000-2014 indicates excess performance in comparison with public markets such as the Nordic Small Cap Index and the NASDAQ 100 as well as in comparison with European and North American venture capital returns.
“It’s great news that we have been able to create the first robust and credible Index for the Nordic VC-market”, says, Erik Hagen, former Chairman of Nordic Venture Network and Managing Partner of Viking Venture.
“The analysis unveils good overall performance for Nordic venture capital and it also shows that a large number of Nordic startup companies have contributed in the value creation. Not only a few exceptional outliers as the perception might be. The analysis also points at even higher eventual returns when the effect of the fee structure of venture funds is taken into account,” Hagen continues.
While there is a lack of robust return data on European and North American and European performance, other data sources would indicate that the Nordic venture market has outperformed both.
“The new Index will be a vital tool in communicating the performance and risk profile of the Nordic VC-market and will help attract more capital to exciting Nordic innovative companies going forward”, Hagen states.
About the Nordic Venture Performance Index:
The new Nordic Venture Performance Index, NVPI, includes 8 venture capital firms, 26 funds and 515 portfolio companies. It describes the period from 2000-2014 and is based on full cash flow information from all participating funds.
The Index has been created by Henrik Talborn at the independent Stockholm research institute, Swedish House of Finance. Partial financing and support for the project have been received from Nordic Innovation, an institution under the Nordic Council of Ministers.
About the Nordic Venture Network:
Nordic Venture Network (NVN) is the club of the leading technology venture capital firms in the Nordic region. For more information about the Nordic Venture Performance Index please contact the management of NVN.
For more information:
Nordic Venture Network
Erik Johansson, Executive Management
Tel: + 46 708 699 358