Strategy of the New Business Venture Fund 2004
Role
The New Business Venture Fund is a venture
capital investor that takes an active part in business development and
growth in Iceland by investing in innovative and pioneering firms
holding promise.
Goal
The goal of the Fund is to invest in
companies from which it can expect substantial added value,
profitability and good return. The earnings of the Fund will be used
for its further development, investment in innovative and pioneering
firms holding promise and research into their operating environment.
The Fund performs its role by:
- investing where innovative values coincide with a potentially profitable business and the need for risk capital;
- being flexible in its investment activities, and focusing on projects for which there is a shortage of risk capital;
- emphasising investment in companies with good prospects of
substantial growth and penetration of foreign markets, and not
specialising in particular industries;
- making requirements for return on capital comparable to those of other venture capital investors;
- taking part in the management of companies in which it invests;
- ncreasing the supply of risk capital by initiating the
establishment of funds of funds in collaboration with other venture
capital investors;
- forging ties with the sources of promising business ideas
and investors that are likely to take part in innovative companies that
show good potential;
- constantly ensuring that the Fund’s procedures and
activities are characterised by the professionalism necessary to create
trust and confidence among partners, owners and clients.
Future Vision
The New Business Venture Fund’s future vision is for innovative and
pioneering Icelandic companies to have access to an active venture
capital market, from business idea to active growth.
By an active market, we mean:
- a balance between profitable projects and the supply of capital needed to implement them;
- good relations between participants in innovative and pioneering companies, from business idea through all financing stages.
The Fund’s future vision is also to be a strong venture capital
investor and a key player in an efficient venture capital market for
innovative and pioneering firms.
By a strong venture capital investor, we mean:
- that management, procedures, facilities, competencies,
responsibility and terms of employment are comparable to those of other
venture capital investors in the market.
By key player, we mean:
- to provide initiative for attracting capital for venture investment
and purchasers of the Fund’s shares in companies in which it has
invested;
- to co-operate closely and efficiently with Icelandic and overseas venture capital investors in innovative and pioneering firms;
- to be a solid and sought-after partner for the financing of innovative and pioneering Icelandic firms;
- to participate in funds of funds to boost venture capital
investment in innovative and pioneering firms holding promise in
Iceland and abroad.
Approved at a meeting of the Board of Directors on 23 April 2004
Lán til nýsköpunar- og sprotafyrirtækja með breytirétti í hlutafé. 
