Response to the study on state risk capital (SRC)

SwedenBIO sees the review of state venture capital as an important piece of the puzzle in the government's work to strengthen life science.

SwedenBIO and its working group for business development and financing have analyzed the government inquiry “A fund structure for innovation and growth”. In our consultation response, we focus on commenting on the parts of the report that may have an impact on the life science sector. We also make recommendations on what the framework conditions for a life science fund should look like.

Government venture capital can help life science entrepreneurs overcome the 'valley of death'.
Properly organized, public venture capital can help life science entrepreneurs cross the “valley of death”.

In summary, SwedenBIO considers that:

  • The proposed fund-in-fund structure provides a good basis for competent investment decisions.
  • At least €1.5 billion should be earmarked for investments in life sciences.
  • The possibility of co-investing with existing funds needs to be clarified to attract more international capital to Sweden.
  • The proposed maximum limit of around 1 billion for a fund is too restrictive as a life science fund initially needs to manage at least 1 billion to achieve a reasonable spread of risk.
  • The rules on stock options, investor deductions and 3:12 rules need to be reviewed urgently.

Download SwedenBIO’s response to “A fund structure for innovation and growth”.

Questions or comments?

Contact Ingrid Heath, Vice President and Head of Policy.
ingrid.heath@swedenbio.se
0701 74 76 33