The Kinnevik Way
Kinnevik is undoubtedly a different animal in the venture and growth capital scene. Our roots stretch back almost one hundred years, initially investing in the iron, paper and woodwork industries, later followed by foresighted forays into telecom, media and new technologies.
Despite what sometimes may seem like a diverse focus, a consistent theme has run through Kinnevik's history: challenging established norms and incumbents with innovative technologies and business models.
By Anna Adlarson, Venture & Growth Investor at Kinnevik.
How our history feeds into what we do today
This rich history has not only endowed us with invaluable experience in building companies and a robust network, but also positioned us among the few venture and growth investors who invest from our own balance sheet, allowing a truly long-term and multistage investment approach.
Our permanent capital structure by design benefits the companies we invest in and our shareholders, as we can be flexible in our investment horizon and back companies from the early stage all the way to IPO and beyond.
We were among the first institutional investors in e-commerce pioneer Zalando in 2010, and four years later, the company went public with a market cap of EUR 5bn. However, we still had conviction in Zalando and remained owners until 2021 when we distributed our Zalando shares to shareholders, generating an 8.6x return on our initial investment.
A more recent example is our investment in corporate business travel company TravelPerk where we first led the $44m Series C in 2018 and have continued to support the company since, contributing most recently to the $104m Series D extension led by Softbank Vision Fund 2 in January 2024. In this latest round, the company was valued at $1.4bn.
But what exactly are the benefits of a multistage investment approach, both for the companies we back and for us as an investor?
For the companies: a journey together
Aligned Visions and Timelines
Our investment approach ensures strong alignment with founders who want to build something at scale over the longer term. Our support can continue if there are exciting opportunities ahead, unbound by predefined fund horizons or exit requirements.
Anchor Investor Across Rounds
Our flexible mandate allows us to provide consistent support and financial backing throughout funding rounds with no upper bound on the amount of capital we can deploy into an individual company, demonstrating commitment and providing stability to the company's cap table.
Experience and Sector Expertise
From our experience in the market, we can offer insights into the challenges and opportunities that arise at different growth stages within our sectors, helping companies navigate various steps on the journey and the investor landscape more effectively.
Building Strong Connections
Our long-term relationship with companies builds deep connections across the investment and entrepreneurial landscape, enhancing access to investors, partners, and strategic opportunities.
What it means for Kinnevik
Freedom to double down on top performers
With our capital structure and long-term perspective, we can double down on our most successful bets. This is exemplified by, among others, our investment in mental health platform Spring Health, where we first led the $190m Series C in 2021 and since have deployed significant further capital in later stage rounds and in secondaries.
De-risking growth stage investments
Investing in early stage companies in the Nordics, led by me, Tatiana Shalalvand and Charles Martin allows the growth team to make more informed, de-risked investment decisions later down the line. We have first-hand access and insight into the companies from the early stages.
Relationships for the long-term
Our approach builds stronger relationships with founders and companies, bringing a level of understanding and trust that is rare in the venture capital world.
Flexible, dynamic but focused mandate
Being flexible and responsive allows us to seize opportunities as they arise, rather than fund durations and constraints dictating our investable universe. This is especially helpful in changing market dynamics.
Timing exits
Unlike traditional funds, we aren’t bound by a contractual commitment to limited partners to exit investments within a specific timeframe. This allows us to time our exits with a singular focus on value.
Clear expectations
The flexibility to invest across stages necessitates clear communication. When considering additional investments, we rigorously assess the opportunity similarly to making a new investment. As such, we like to align on expectations together with the founders continuously.
