Have You Considered an IPO in Sweden? It’s Another Way for Startups to Raise Capital

AktieTorget – which means ”Share square” in Swedish – is a unique Swedish setup enabling entrepreneurial companies to get access to the capital market. In this case, the capital market means the general public and a number of institutions that take an interest in promising, young companies.

AktieTorget is a stock exchange. The idea is that investors, particularly small investors whose investments in entrepreneurial companies will not give them power, are not willing to invest unless the company promises immediate listing after an IPO. Listing provides a modicum of security to the small investor. The promise of listing opens purses that otherwise would have been closed.

There is no reason why this opportunity should not be open to American companies as well. There are no legal limitations for Swedish investors to finance promising American small and medium size companies.

If you are involved with such an American company and you want to try this out here is what you should do: send me an email at [email protected] explaining your plans and your needs. If we think your company would be interesting to Swedish investors, we will contact Steve Hoffman, Cofounder of Founders Space, to seek out his opinion of your operation. For example, does he believe you company would attract local investors? The reason is it would be easier for an American company to raise money in Sweden if there is already some financing from local sources.

If everything turns out well and we mutually decide to cooperate, there are, unfortunately, some administrative glitches. To list in Sweden, you have to have a European company. AktieTorget will help you set up a Swedish company that will own your American company as a subsidiary and do the IPO.

To make a long story short, AktieTorget will help you with all this if we think your business will attract Swedish investors.

Now, how much will this cost you? The rule of thumb is around ten per cent of the capital raised. Naturally, there is a risk the IPO will not work out – in fifteen years of operation this has only happened to us once or twice out of almost 200 IPOs, but there is a risk – and you will want to know how much such a calamity will set you back. This is difficult to say, since we have not worked with American companies before, but if it were a Swedish company – and they rightly pose the question as well – we usually say no more than US $ 10 000. And none of it would go to AktieTorget, but to people writing prospectuses etc. We only make money if you are successful in raising the capital you need.

For more information, go to www.aktietorget.se.

Patrik Engellau, founder of AktieTorget

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