Pre-seed fund 2015–2020
The aim of pre-seed capital is to reduce risk by releasing private investment capital to early-phase companies. Pre-seed funding is also intended to promote more rapid growth by supplying competent capital. It will put start-up companies in a better position to obtain more capital themselves during the next financing stage.
The pre-seed fund employs intermediaries who invest and administer ownership on behalf of Investinor. It is these intermediaries that select the companies that shall receive investment funding. The intermediaries include incubators, technology transfer offices (TTOs) and some business angel networks.
The pre-seed fund employs intermediaries who manage the capital and exercise active ownership. They select the companies that shall receive investment funding. The intermediaries include incubators, technology transfer offices (TTOs) and some business angel networks. A precondition for all pre-seed investments is that the companies obtain at least as much capital from outside investors, thus ensuring that the scheme contributes towards releasing risk capital from the private sector.
Who is entitled to pre-seed investment?
- Norwegian registered, innovative start-up companies with significant growth potential. (For a definition of ‘innovative company’, please refer to the section titled “Target group” below)
- The company must be younger than five years from its date of registration in the Norwegian Register of Business Enterprises
- Small or medium-sized non-listed companies
How do we apply?
A start-up company looking to find out if it is entitled to pre-seed investment must contact one or more of the investor groups that manage pre-seed capital from Investinor. Make sure that you are well prepared – with a quality investor presentation. You will find a list of the relevant investor groups below.
Relevant pre-seed investor groups
Aleap ASGo toAngel Challenge ASGo toArkwright Norway ASGo toCofounder II ASGo toFFV ASGo toIndustriinkubatoren Proventia ASGo toInnoventus Sør ASGo toInven2 ASGo toKatapult Accelerator ASGo toKjeller Innovasjon ASGo toKongsberg Innovasjon ASGo toKunnskapsparken Bodø ASGo toMicrotech Innovation ASGo toSilicia ASGo toNew Normal Group ASGo toNorinnova TTOGo toNorthern Farmhouse Capital ASGo toNTNU Accel ASGo toSimula Innovation ASGo toSkyfall Ventures ASGo to657 Oslo ASGo toStartupLabGo toSagene Tech VentureGo toT:Lab ASGo toTelemark Group ASGo toTidligfasefondet i Nord-TrøndelagGo toTheFactory ASGo toTripod Capital Collective ASGo toValidé ASGo toVestlandets Innovasjonsselskap ASGo toVictrix ASGo toÅlesund Kunnskapspark ASGo toProtomore ASGo to
Which companies have received pre-seed funding?
Companies who've received pre-seed funding per 23.04.2020
Agdir Drift AS
Age Labs AS
AIA Science AS
Applied Autonomy AS
Bill Kill AS
BlueEye Robotics AS
Blåfjell Holding AS
Brudeli Green Mobility AS
Catalysts Technologies AS
Cimon Medical AS
Club United AS
Digital Group AS
Ecofiber Recycling AS
Effee Induction AS
Entire Body AS
Eventum Norge AS
Evva Technologies AS
EYR Medical AS
Fabriscale Technologies AS
Graphiq Technologies AS
Ignite Procurement AS
Independence Gear AS
Innovation Garage AS
Iris AI AS
Kongsberg Ferrotech AS
Kyoto Group AS
Lean Business International AS
Mojob Norge AS
Moonstone Retreat AS
MSG Production AS
N2 Agri AS
No Isolation AS
Payrest Norge AS
Pharmasum Therapeutics AS
Pre Vention AS
Prosa Security AS
Rock Physics Technology
Serca Pharmaceuticals AS
Sherpa Education AS
Smart Crowding AS
Snow Cannon Games
Soraytec Scandinavia AS
Sports Computing AS
Stalkit Holdning AS
Tango Seaweed AS
Think Outside AS
Ticket Co AS
UBIQ Aerospace AS
Urban Gartneren AS
Vio Media AS
Visavi Technology AS
WAI Environmental Solutions AS
Wide Assessment AS
Xplora Technologies AS
Xvision Software AS
Zelluna Immunotherapy AS
Zelluna Therapeutics AS
Ztl Holding AS
Zu4r Sportswear AS
What can be funded?
Pre-seed investments are intended for innovative companies that are preparing for growth. They must also:
- on the basis of an assessment carried out by an external expert, be able to demonstrate that they will develop products, services or processes that are new or significantly advanced compared with the most recent (state-of-the-art) products, etc. within their respective sector, and which entail a technological or industrial risk, or
- have incurred research and development costs that constitute a minimum of 10% of total operating costs during at least one of the last three years prior to pre-seed investment or, in the case of a start-up company with no previous accounts, in updated auditor-verified part-year accounts.
- Notification shall be provided to the company receiving investment that the financing is sourced from Investinor’s pre-seed fund.
- The company receiving investment shall, on receipt of the funding, be no older than five years from its date of registration in the Norwegian Registry of Business Enterprises.
- Investments from the pre-seed fund may range from NOK 500,000 to NOK 3 million for each company.
- Equity invested by private companies must be no less than the investment amount sourced from the pre-seed fund. Pre-seed investment and co-investment from private investors shall constitute components of the same share issue. A pre-seed manager may invest up to 50% of the private co-investment funds.
- Private equity (co-investment) that forms part of this share issue must be sourced from independent investors, i.e. not from the company’s founders or employees.
- A pre-seed manager is not entitled to own more than 50% of the company in which it invests.
- Innovative foreign start-up companies with Norwegian subsidiaries may be accepted for funding provided that investment is made in the Norwegian subsidiary, which is providing jobs and economic activity in Norway.
- Companies in which investment is made shall neither be listed nor ‘large’, as defined in the EEA agreement’s state support regulations.
- No investments may be made in companies that are in ‘difficulties’, as defined in the EEA agreement’s state support regulations and Article 18 (a-d) of the General Block Exemption Regulation (GBER).
- The company that receives investment must be ‘innovative’, as defined in the EEA agreement’s state support regulations.
- On the date on which it is made, an investment must be considered to have a profitable potential exit strategy after a reasonable time. It shall be possible to document assessments linked to the investments.
At least 50% of the investment amount shall be sourced from independent investors. What is an independent investor?
An independent investor is an investor that is neither an employee nor a founder of the company.
Can other funding instruments be regarded as independent private investors?
Yes, provided that the fund in question invests under commercial terms and conditions and assumes responsibility for its investments, it can be regarded in this context as an independent private investor. In such cases, it makes no difference whether the capital held in the fund is derived from private or public sector sources.
Can co-investment funds be raised by crowdfunding?
Yes, provided that the capital is obtained legally, Investinor stipulates no other requirements regarding how capital is raised. It is important that the company puts in place an effective strategy for ensuring short- and long-term funding, and for the type of owners it wishes to attract.