Newly started Destination Invest aims to invest in entrepreneurs in selected socioeconomically disadvantaged areas of Gothenburg

Less than 1 percent of venture capital in Sweden has been found to reach entrepreneurs outside major city centers, such as in suburban areas, according to several studies conducted in recent years. To reverse this trend, a new investment company, Destination Invest, is being launched with a focus on entrepreneurs in selected parts of Gothenburg. The initiative is backed by Volvo Cars, Stena Fastigheter, Framtiden Group, Business Region Göteborg, and GU Ventures, alongside the proposed board of directors, who welcome more participants to join Destination Invest.

Entrepreneurs with solid business ideas create interesting opportunities and are a crucial part of the ecosystem, fostering the growth of new companies that provide jobs. They also serve as role models and contribute to positive societal development. However, to grow and expand their businesses, entrepreneurs often seek external capital. Yet, the reported distribution of venture capital remains heavily skewed, failing to reach certain groups in society, including talented entrepreneurs in specific areas of Gothenburg.

Significant resources are being allocated by multiple stakeholders to enhance social and urban development, particularly in neighborhoods like Bergsjön, Biskopsgården, Hammarkullen, Hjällbo, Lövgärdet, and Tynnered. Volvo Cars, Stena Fastigheter, Framtiden Group, and Business Region Göteborg are already actively engaged in initiatives within these communities, focusing on education, leisure, and employment. Now, they are taking a further step with the launch of Destination Invest.

Collaborative Effort for Growth

In collaboration with GU Ventures, linked to the University of Gothenburg, these organizations have decided to support the establishment of a new investment company with a clear focus on entrepreneurs in the designated areas. The name Destination Invest was inspired by the prior initiative Destination Tynnered, driven by four of the partners.

"We know that there are talented entrepreneurs in our communities with business ideas that have growth potential, but they lack the right networks to raise capital. We aim to enable this by establishing a new investment company," said Cecilia Fasth, CEO of Stena Fastigheter.

"Through Volvo Cars' commitment, we aim to inspire more companies and individuals to invest in Destination Invest. This will help more local entrepreneurs turn their business ideas into reality and thrive. It will not only benefit their own communities but also the greater Gothenburg region," said Thomas Andersson, VP of Volvo Car Group.

"Self-sufficiency is one of the most critical factors in reversing the socio-economic development of an area. With this initiative, we are opening doors for those who wish to invest in our development areas, contribute to a strong business sector, and bridge the gaps between different parts of the city. It aligns perfectly with Framtiden Group’s development area strategy. Together with GU Ventures, we ensure that these investments are made on solid business principles," said Terje Johansson, CEO of Framtiden Group.

Vision for Long-Term Impact

The ultimate goal is to contribute to the establishment of numerous new businesses in the Gothenburg region, founded by entrepreneurs from these communities. These entrepreneurs will serve as role models and inspire others to embark on similar journeys, fostering positive development for both the neighborhoods and the city as a whole.

"The hope is that, in the long run, this initiative will have contributed to the establishment of several new businesses in the Gothenburg region, founded by entrepreneurs from these areas. They will serve as role models and inspire others to embark on a similar journey. This, in turn, will foster positive development for these communities and the Gothenburg region as a whole," said Patrik Andersson, CEO of Business Region Göteborg.

Currently, Destination Invest is wholly owned by GU Ventures, which has extensive experience in investments and supporting startups, having raised over 20 billion SEK for its portfolio companies. The plan is for GU Ventures to build the new investment company with support from entrepreneurs, investors, and other talents.

"Our entrepreneurs inspire and motivate others to follow their dreams while also becoming substantial employers. However, to achieve this, external capital is needed to give them the strength to grow. We have many valuable investor connections that we can leverage to create a more equitable distribution of capital. This will lead to successful businesses, stronger entrepreneurial clusters, and make investing in Destination Invest even more attractive," said Klementina Österberg, CEO of GU Ventures.

Proposed Board of Directors

The new board of Destination Invest, to be confirmed at the upcoming general meeting, will be chaired by Marie Osberg, who has extensive experience in banking and finance. Osberg has also served as the chairperson of Save the Children Gothenburg for the past four years.

Additional proposed board members include:

• Salman Eskandari and Arta Mandegari, co-founders of eEducation Albert

• Gabriel Ghavami, CEO and founder of GO MO Group

• Sofia Appelgren, founder of the social enterprise Mitt Liv

• Mats Torring, Head of New Ventures at Stena Metall

• Emma Rozada, co-founder of The Techno Creatives

• Klementina Österberg, CEO of GU Ventures

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Collaborative Investment Model

Destination Invest will collaborate closely with existing ecosystems that support entrepreneurs and will co-invest with established investor networks. The firm believes that many talented entrepreneurs in these areas are seeking capital and can benefit from both financial backing and valuable connections.

By bringing together investments and expertise, Destination Invest aims to generate successful business outcomes for both investors and entrepreneurs. Furthermore, it will enhance the existing business community, increase competitiveness, and strengthen Gothenburg’s entrepreneurial environment.

Sources:

• Breakit Report on Venture Capital Distribution

• Further Insights on Capital Disparity