Frequently asked questions about venture capital

Venture capital is best suited to companies with high growth potential, scalable business models and significant funding needs.

It is a form of financing designed for companies that want – and are able – to grow rapidly. These are often technology-driven businesses, innovation-led companies or businesses targeting international expansion. Investors generate returns based on the future value of the company, which means the business model must be able to scale without costs increasing at the same rate.

As a result, venture capital is generally better suited to companies aiming for rapid growth than to businesses that grow organically or operate primarily in local markets.

Venture capital is not the right option for companies that want to retain full control, grow slowly, remain at the idea stage or lack a clear and scalable business model. It is also less suitable for businesses with limited funding needs or entrepreneurs who prefer to avoid external shareholders, governance requirements and investor agreements.

If the business is highly service-based, dependent on key individuals or lacks scalability, other forms of financing may be more appropriate, such as business loans or support from other parts of Almi.

Venture capital also means bringing in shareholders and adopting more structured reporting and governance practices, which is not right for every business. If the company is not planning to accelerate growth, raise additional investment or build towards an eventual exit, venture capital is rarely the best route.

Almi Invest invests in startups and early-stage growth companies with scalable business models, international potential and strong teams. We focus on innovation, technology, sustainability and business models capable of rapid growth.

The companies we invest in are typically at the pre-seed, seed or early growth stage and have a product, prototype or early evidence demonstrating that the idea can be successfully developed.

We prioritise companies operating in large markets, with business models that can scale both nationally and internationally, and teams that combine diverse skills, strong execution capabilities and ambition. While we are sector-agnostic, we are particularly engaged in technology- and innovation-driven companies with significant growth potential.

Companies that are not scalable, lack growth ambitions or operate in areas covered by our exclusion framework are generally not eligible for investment. Businesses that are still at a very early idea stage also fall outside our investment mandate.

Companies with slow growth trajectories, consultancy businesses that depend heavily on individuals, or businesses that primarily require loans rather than equity financing are rarely a good fit for Almi Invest.

We also do not invest in sectors restricted by European Union state aid regulations or Almi’s exclusion framework, including certain parts of the fossil fuel industry, gambling-related activities and other excluded sectors.

Companies without a team, market validation or early-stage development are usually considered too early for investment.

No. We do not invest in pure ideas or concepts that lack a team, a registered limited company structure or early evidence of potential. A company must have progressed beyond the idea stage.

Although we invest at an early stage, the business must be formally established and able to demonstrate progress through, for example, a prototype, pilot project, technical validation or early customer engagement.

We need to see a founding team capable of executing the plan and a business model that can scale. Ideas without structure, a team or market validation are generally too early for venture capital from Almi Invest and may be better suited to advisory services or business loans offered elsewhere within Almi.

Almi Invest is Sweden’s most active investor in startups. We invest in young growth companies with the potential to scale rapidly. We play an active role in strengthening Sweden’s innovation and startup ecosystem by providing capital, expertise and networks where they can make the greatest impact.

As a state-owned venture capital company, Almi Invest has a clear mission: to invest in companies that contribute to innovation, growth and competitiveness in Sweden, particularly in early-stage businesses where private capital is often reluctant to invest due to higher levels of risk.

We support startups by providing venture capital, acting as active owners and co-investing alongside private investors across the country. With a presence throughout Sweden and nearly 1,000 investments completed, we are a central part of the country’s startup infrastructure.

Almi Invest exists to increase access to early-stage venture capital for innovative Swedish startups with high growth potential. As a state-owned investor, our role is to bridge funding gaps by investing alongside private investors, helping to promote innovation, sustainable growth and a strong business sector across Sweden.

Our mission is to strengthen Sweden’s innovation capacity by investing in startups operating in early and often high-risk stages where private capital may be hesitant to invest.

As an active owner, we contribute not only capital but also expertise, networks and strategic support through board participation in our portfolio companies.

Our investment model is based on co-investment, meaning that every krona we invest is intended to attract at least an equivalent amount of private capital. This helps reduce risk for private investors while increasing access to venture capital for growing businesses.

Through our seven regional funds, we support growth throughout Sweden, including outside the major metropolitan areas. We also manage the GreenTech Fund, which focuses on companies that reduce carbon emissions, protect natural resources or help restore ecosystems.

Almi Invest provides venture capital and takes equity stakes in companies, while Almi Företagspartner focuses on business loans and business development services.

Although we have different roles, we share a common purpose: strengthening business growth and entrepreneurship in Sweden.

Almi Invest is owned by Almi AB, which in turn is owned by the Swedish state.

We are therefore a state-owned venture capital company with a clear national mission.

Being state-funded does not affect how we work with entrepreneurs or co-investors. Our investments are made on commercial terms and with the same expectations regarding growth potential, team quality and scalability as private venture capital investors.

The key difference is that our capital has a market-complementing mission. This means that we are required to invest alongside independent co-investors and can never invest on our own.

As a result, we help mobilise private capital, share investment risk and provide companies with access to additional funding, valuable networks and broader expertise.

Venture capital is funding invested in privately held companies with high growth potential. The investor purchases shares in the company, becomes a shareholder and often contributes both capital and expertise to help the business grow.

Raising venture capital means selling shares to investors who want to help build long-term value in the company. Venture capital is primarily used by businesses aiming for rapid growth, where funding requirements are greater and the level of risk is higher than traditional loans can typically support.

Loans must be repaid and often require security or collateral. Venture capital involves an investor becoming a shareholder, taking on greater risk and only generating a return if the company increases in value.

With a loan, the company borrows money that must be repaid according to an agreed schedule, usually with interest. This model is generally best suited to businesses with stable cash flows.

Venture capital, by contrast, is designed for high-growth companies where the funding is used to scale the business rather than service debt. The investor accepts a higher level of risk and is rewarded through equity ownership and future value creation.

A funding round is when a company raises new capital by selling shares to investors. Each round typically has a defined investment amount, a company valuation and a group of participating investors.

During a funding round, the company’s valuation is established, the amount of capital to be raised is agreed and the participating investors are identified.

Funding rounds are generally used to finance a specific milestone, such as launching a product, building a team or expanding into new markets.

Companies often complete several funding rounds over time, with both valuation and risk evolving as the business grows and develops.

To be considered for investment, a company must meet our investment criteria. We invest in innovative Swedish startups with global potential, strong teams and scalable business models.

We always invest alongside private investors and can provide up to 50% of a funding round.

We are particularly interested in companies that:

• Develop unique and innovative solutions that create clear customer value
• Have teams with diverse skills, experiences and perspectives
• Build scalable business models, often based on technology or a clearly defined niche
• Address real customer problems in large and growing markets

In addition, companies should typically:

• Be at the pre-seed, seed or early growth stage
• Have ambitions to compete internationally
• Be open to additional investors, as Almi Invest never invests alone

We are sector-agnostic but have a particular focus on areas such as Tech, Deep Tech, Industry, Life Science and Sustainability.

For companies that may be relevant for Almi Invest GreenTech, we also assess their potential to deliver measurable climate or environmental benefits.

 
 

Almi Invest GreenTech invests in startups and growth companies that can deliver measurable climate or environmental benefits, for example by:

• Reducing greenhouse gas emissions
• Improving resource efficiency
• Reducing the use of water, land or raw materials
• Supporting environmental sustainability, including biodiversity

The GreenTech Fund invests in companies with the potential to reduce at least several hundred thousand tonnes of CO₂e annually within 5–15 years, or otherwise create significant and measurable environmental impact.

As with all our investments, a strong team, innovative technology and clear market potential are essential.

You always submit your pitch through the same application form. We assess internally whether a company is best suited for GreenTech or one of our other funds.

Pitch your startup here

 
 

You pitch to Almi Invest through our online pitch form.

There, you provide a brief description of your company, your funding requirements and contact details, and upload your pitch deck. The pitch deck is particularly important because it forms the basis of our initial assessment of whether your company fits our investment focus.

Your pitch deck helps us quickly understand the potential of your business and determine whether it is at the right stage for investment.

If you would like to prepare more thoroughly, we recommend our guide to creating a winning pitch deck. The guide explains how to present your vision, problem, solution, team, market, business model, validation, competition, funding needs and exit strategy.

No.

Simply submit your pitch deck through our website and we will ensure that it is reviewed by the most relevant regional fund or by the GreenTech team.

We aim to provide an initial response within a few weeks.

The timeframe may vary depending on the volume of applications and the current investment focus of the relevant fund.

An investment from Almi Invest means that we become a minority shareholder and work actively to help develop the company. We always invest alongside private investors.

When we invest, we purchase shares in the company and become an active shareholder focused on creating long-term value. We follow a structured investment process, assessing the team, market, business model, technology and scalability.

Our model is based on co-investment, meaning that we always invest alongside private investors who share our view of the company’s potential. As a minority shareholder, we work closely with the company’s team through strategic support, board participation and access to our network.

Almi Invest typically invests SEK 1–4 million in an initial funding round, while our GreenTech Fund invests SEK 5–10 million.

We always invest as a minority shareholder and alongside private investors.

Almi Invest GreenTech is our national fund focused on companies that generate significant climate and environmental benefits. The fund has a larger investment capacity than our regional funds.

GreenTech typically makes an initial investment of SEK 5–15 million in funding rounds that are often between SEK 10–50 million in size.

We can also participate in follow-on funding rounds, with a total investment capacity of up to SEK 50 million per company.

Learn more about the GreenTech Fund

As a state-owned venture capital company, we are required to invest alongside independent co-investors. We can therefore never invest on our own.

This approach helps us share risk, provide companies with access to more capital, valuable networks and additional expertise.

In this way, we act as a bridge to private venture capital and create stronger conditions for startups to grow and succeed.

No. It is not a requirement to have co-investors in place before pitching to Almi Invest.

Some companies approach us with existing investors already committed, while others have not yet assembled an investor syndicate.

The structure of each funding round varies. In some cases, we actively help identify and bring together co-investors through our network of business angels and venture capital funds. In other cases, the company already has a strong investor base when discussions begin.

The most important factor is that the company and team meet our investment criteria. The structure of the funding round is something we assess together during the investment process.