REPORT 2012/05 Start av regionala investeringsfonder ... - circle

different funds. This also means that funds that have common principles for procedures and
emphasis will need to develop different ways of working.
During the first year of the endeavour, all funds have come under way with their operational
activities and recruited Managing Directors and other personnel. MD recruitment was a lengthy
process in several funds, but now all MDs are in place since the northernmost fund’s MD began in
the spring of 2010. The funds have worked to establish administrative procedures, market
themselves, seek investment objects, respond to direct inquiries and evaluate investment
objects. All funds except one have made investments, but most are currently behind in their
investment plans. One explanation of this is that the funds came under way later than planned
due, among other factors, to a delay in the disbursement of regional co-financing, the
establishment of procedures in accordance with the regulations, etc. However, the funds note
good chances of catching up. The pace of investment is, however, an element of risk that should
be carefully monitored, especially in light of the half-time assessment of the funds that is to be
conducted in 2011 when Tillväxtverket may decide to withdraw ERDF funding from the funds, if
there is, for example, a risk that the funds will not be able to invest their funding during the
project period. There is great interest in the funds. They have been positively received by
companies, private investors and regional stakeholders and they have considerable faith in the
future.
In the dialogue with the MDs of the funds and the managing agency – Tillväxtverket – it came
forth that the funds have perceived certain ambiguities concerning the funds’ objectives and
mission as well as the interpretation of European and national regulations that govern the funds’
activities and the use of indicators for the reporting of the activities. Through an active dialogue
with the fund projects and the follow-up researchers, Tillväxtverket has made note of these
lessons learned. It has contributed to developing a uniform goal structure for all funds, which is
presented in this report. Tillväxtverket is also working to simplify indicators for reporting and in
the autumn will present a document that clarifies regulations and other guidelines for the work of
the funds. Establishing the interpretation and understanding of the regulations as soon as
possible is crucial to the funds’ possibility of working appropriately since it can affect which
investments can be made and consequently how both investment objects and co-investors can be
recruited.
Among other factors that have affected and will continue to be central importance to the funds’
activities is primarily the possibility of finding good investment objects and capital-strong and
competent private co-investors. The extent to which the funds perceive it to be problematic
varies between different regions and is felt more in regions that have a less developed private
venture capital market and a business structure based on companies that are not traditionally the
objects of venture capital financing. Another challenge is finding a way to “invest right” - in line
with guidelines for the funds’ work and with the opportunity of a reasonable return.
To handle these challenges, in the coming period the funds will focus on the work as professional
investors, will recruit people with the right skills, form networks with relevant stakeholders, work
with marketing and media relations, establish and use their brands and cooperate with each
other and other nearby actors, such as banks, auditors and business promotion organisations.
The funds also believe it to be important to broaden their networks of investors, particularly
internationally, and to allow the companies to get involved in the work of finding co-investors and
investment solutions. Tillväxtverket also notes opportunities to promote the funds, such as by
linking the endeavour and funds with other relevant actors and efforts, marketing the endeavour
in relevant forums (regionally, nationally and internationally) and considering the possibility of
supplemental efforts that can improve the funds’ chances of investing their funding in a positive
manner. The on-going evaluation also plans to initiate a dialogue with the funds’ regional cofinanciers
with regard to the opportunities they have of promoting the funds’ activities in their
respective regions.
On-going evaluation has also noted that the structure of the endeavour in itself entails difficulties
for the fund projects to invest “right”. For example, it may be difficult to invest in companies in
the early stages of development and at the same time generate a reasonable return for the fund
to be able to revolve. A conflict may also exist between having a low management fee and being
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