Iceland review - 2014, Side 20

18 ICELAND REVIEW
THE
WIzARDS
MA: Can you tell me about the history and creation of the fund?
HV: We were founded with an initial investment of ISK 4
billion in 1998 and are Iceland’s oldest surviving venture
capital fund. Created through the merger of the seafood
and industrial fund, this produced a corporate banking arm,
becoming part of Íslandsbanki, and NSA Capital. The fund is
evergreen—which means no new money is put in other than
when we sell shares in companies and re-invest the proceeds
back into the fund.
MA: How many companies does NSA own a share in?
HV: We’re currently in 36 companies which, given the size
of the fund, is broad. We usually invest in three to five new
companies a year and also make investments into current
companies as when they’re growing they need more support.
MA: Do you invest in these companies at a set time in the year
or is it organic?
HV: It’s organic when the opportunity appears. Our invest-
BY Mica allan
PHOtO BY PÁll stefÁnssOn
ment process is about three months long. As it’s a ten year invest-
ment we take some time reviewing and we get to know the team,
the product and we have in-depth due diligence—technical,
marketing and legal. Our investment board reviews all investment
opportunities and the board of the fund approves all investment
decisions, so it’s some ten people that scrutinize every opportunity
and all with diverse backgrounds, which I think is a good thing
because you get very different questions from different people.
MA: You say the process takes three months. Is that all formalized?
You hear of investment companies and entrepreneurs at the kitchen
table sharing their hopes and dreams?
HV: We try to be active at the grassroots in the venture scene
in Iceland and get to know entrepreneurs and their hopes and
dreams informally but when they come and see us formally, there
is a process: they have to have a business plan, and they have to
have a PowerPoint presentation. They need to have incorporated
their company too, and so a lot of companies get as far as they can
with grants and when they need more capital they come to us.
Iceland is hatching innovative new companies across a range of sectors. But which entrepreneurial
ideas become strong businesses? How do you create that magical alchemy between business
sense and a creative idea? And what’s the financial wizardry behind identifying and
cultivating these foundling companies? Mica Allan spoke to
Helga Valfells, CEO of Icelandic venture capital fund,
NSA Capital, to find out more.