Becoming a fully-fledged growth investor
Since 1936, Kinnevik has continually evolved, yet innovation has always remained at our core. From the early days in forestry to our expansion into telecommunications and commercial television 40 years ago, e-commerce 15 years ago and today's investments in growth stage companies across the Nordics and in the US, our focus has always been forward-thinking.
In 2018, we embarked on our latest transformation, divesting and distributing companies such as MTG (2018), Millicom (2019), Zalando (2021) and Tele2 (2024) to emerge as a dedicated growth investor. Our strategy is now focused on three high-impact sectors: Health & Bio, Software and Climate Tech.
At our recent Capital Markets Day, CEO Georgi Ganev and CFO Samuel Sjöström presented a comprehensive view of Kinnevik's current position. Today, we are at the cutting edge of healthcare, software and climate tech, addressing some of the most pressing challenges of our time.
Here's how we are shaping the future as a leader in the growth investment space.
Reshaping the Portfolio: A Targeted Approach
Our portfolio is centered on five key assets: spend management software Pleo, travel management leader TravelPerk, hotel efficiency innovator Mews, care provider Cityblock and personalized mental health platform Spring Health. Our investments in these companies represent more than half of our portfolio, and their continued strong performance is fundamental to Kinnevik's growth trajectory. Many of them have attracted new capital from investors in the current market environment. Spring Health, for instance, recently raised a USD 100m Series E round led by Generation Investment Management at a USD 3.3bn valuation; TravelPerk secured another USD 104m in January 2024 lifting its valuation to USD 1.4bn and Mews raised USD 110m earlier this year, reaching a USD 1.2bn valuation.
These companies have benefitted from our deep partnership approach and our unique strengths as a growth investor. We have supported our companies and have accumulated large ownership stakes over time through continued follow-on investment, typically positioning us as the largest shareholder after the founders. Throughout this journey, our team has been active board-represented owners, building enduring and trusted relationships with the founders.
Our high potential, selected ventures
Alongside our core assets, we have invested in six high potential ‘selected ventures’—breakthrough companies destined for future, significant growth. These include heat pump provider Aira, fossil-free chemical producer Solugen, biology and chemistry mapper Recursion, green steel producer Stegra, regenerative agriculture platform Agreena, and drug discovery platform Enveda.
These companies currently make up 15% of the portfolio and are experiencing solid progress, albeit in less linear and obvious ways than our core companies. Recent highlights include Aira’s EUR 63m extension round, Recursion being granted FDA approval to begin phase 1 trials of an AI-discovered cancer treatment; and Solugen which featured in the 2024 CNBC Disruptor 50 list of companies riding the AI wave. These ventures will receive further support from Kinnevik based on their achievements and growth milestones.
The rest of the portfolio can be split into two categories. The first are the more mature companies that have been in the portfolio for some time which are profitable, need no more capital from Kinnevik and are likely to be exited in the next few years when the time is right. The second is more mixed: some are relatively new additions to the portfolio with potential to move up to the ‘selected’ ventures group and potentially become core assets in time (e.g. Transcarent, Pelago or Charm), and some are investments which have failed to meet our expectations.
Strategic Investment Focus
Throughout our history, we’ve invested across diverse sectors—from platforms and marketplaces to financial services. We’ve learned from our experiences, and in 2024, we sharpened our strategic focus on Health & Bio, Software, and Climate Tech. Since 2023, 84% of our investments have been in these sectors, led by our Senior Investment Directors:
- Health & Bio (Christian Scherrer): We support innovations that address global health challenges in three proven business models - value-based care, virtual care and bio.
- Software (Akhil Chainwala): We invest in software solutions driving digital transformation with two focus areas - vertical SaaS and the consumerization of enterprise.
- Climate Tech (Natalie Tydeman): We back technologies that foster sustainability and resilience, businesses in the green supply chain and which are supporting the energy transition.
Stay tuned for future updates detailing our sector-specific strategies.
Our Winning Approach
Kinnevik’s unique investment model combines the agility of venture capital with the strength of growth funding and the stability and generational perspective of a European holding company. Our long-term capital allows us to support portfolio leaders beyond traditional funding rounds, through IPOs and beyond. This approach encourages founders to adopt decade long visions, supporting and nurturing bold ideas.
Looking Ahead to 2030
By 2030, we aim to be recognized as Europe’s premier growth investor. We’re committed to proving our investment model’s success, continuing to back top entrepreneurs both in Europe and the U.S., and streamlining our portfolio in the core sectors we outlined above. Our vision includes building and maintaining a lean, high-caliber team with a robust network, maintaining transparency with shareholders and delivering significant shareholder value.
In Summary
Kinnevik’s transformation into a growth investment leader is an exciting new chapter. With a clear 2030 vision focused on high-growth sectors, impactful partnerships, and a long-term investment model, we are well-positioned to shape the future of growth investing, turning today’s bold ideas into tomorrow’s industry leaders.
