The economic footprint of Swedish Venture Capital and Private Equity
The economic footprint of Swedish Venture Capital and Private Equity
Private Equity (PE) and Venture Capital (VC) provide unique ways of developing and scaling high-potential companies. They bring capital to high-risk companies and deploy active ownership, thereby helping to scale up innovative ideas in the start-up phase and bringing them to the market in the later growth phase of a company.
The Swedish Private Equity market is the second largest in Europe compared to the size of the economy, with Stockholm acting as a hub for risk capital. PE and VC thereby contribute significantly to the Swedish economy.
In a new report commissioned by the Swedish Private Equity & Venture Capital Association we find:
Significant productivity increases in PE-owned portfolio companies; up to 22% during the period of ownership.
PE and VC combined permanently increase Swedish GDP by 3.5-4.7% through direct and indirect effects (via economic spill-over effects).
Sweden is the second largest European exporter of PE funding, making Stockholm a PE hub supporting high-potential companies in the Nordics and beyond.
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Related work
The European Commission
Study on equity investments in Europe: Mind the gap
Swedish Private Equity and Venture Capital Association (SVCA)
Economic Footprint of Swedish Private Equity
Related Links
SVCA