– IN MANY COUNTRIES, there is a mutual respect and understanding for the need for venture capital to build a profitable business, he says.

Since 2005, Norwegian Verdane Capital has an office at Birger Jarlsgatan in Stockholm. Göran Strandberg works here and has been in the venture capital world for eight years with a past in the IT business. He stresses the importance for Swedish companies to get established in several markets.

– Our goal is to create value and this basically means fast and good growth for a period. We are convinced that in order to get a good return, you need to be active in bigger markets than Sweden and the Nordic countries.

The type of expansive companies that Verdane Capital is interested in, need to have a global business idea; the domestic market is too small.

THE FACT THAT a Norwegian venture capital company is setting up business in Sweden is nothing odd. Similar cultures, language and values make collaboration and networking smooth and easy.

– Sweden is the largest market in the Nordic area. As a Norwegian company being successful here means better expansion opportunities, says Göran Strandberg.

He says that the Swedish and the Norwegian business climates are very similar with no major differences in the way Norwegian and Swedish companies operate. However, there are sectors where the countries differ. Strong Swedish sectors are for example, IT, Telecom and manufacturing industry. Norwegian companies are skilled in marine technology and oil energy.

– From a global perspective, Swedish companies could improve their commercial activities; sales and creating alliances.

This is where Verdane Capital gets in the picture. If you think that a venture capital only shovels money into your business and sits back and wait, you need to reconsider.

– Before you set up business abroad, we assist in two very important areas. First, we use our network to make sure the company has the right knowledge before setting up abroad. We may add management and board resources as well as establish contact with a strong local partner. This is to strengthen knowledge in the company at an early stage.

– We are also active in establishing a good business plan and assist in analysis and market research, says Göran Strandberg.

A COMMON MISTAKE among companies setting up abroad is to underestimate the time and money it takes to enter a new market. It is not the same as setting up in your domestic market. One of Verdane Capital’s most well-known investments is the internet advertising company Tradedoubler, with offices in 16 countries and with more than 500 employees, but mostly it invests in smaller companies. What makes a venture capital invest in a company?

– Basically, it is about the value we believe can be created. That is the most important thing and there are two key factors. One is the company’s growth potential either organically or through acquisitions. The other is skilled people to do the job, explains Göran Strandberg.

THE TOWERING STORM clouds on the international market are not affecting Verdane Capital’s companies. The recession, however, makes it harder for venture capital companies to sell assets with enough profit. That is why Göran Strandberg believes many venture capital companies will hold on to their investments for a while. This may be positive for more long term investments.

But why the interest for Sweden and Swedish companies? What about the rest of the Nordic market?

– Finland and Denmark are markets that we are actively looking at and we have plans to expand there. This business is about creating value and you need a market with exciting companies, skilled management where you feel you may act easily.

– In Sweden there are many attractive investments, finishes Göran Strandberg.

Nils Karlén