Ark Kapital and EIF unlock SEK 575 million for Swedish high-tech SMEs

Cristina Blanaru Business, Digital & Media, Finances, Start Up

Swedish tech start-ups can be on the lookout for attractive funding through recently launched investor Ark Kapital. Through a guarantee deal with the European Investment Fund (EIF), the company will make available SEK 575 million (approx. €57 million) in new lending. The portfolio will be guaranteed up to 70% by the EIF, allowing Ark Kapital to offer more advantageous conditions on its loans.

The guarantee from the EIF falls under the “European Guarantee Fund”, meant to ensure that European SMEs have sufficient financing available to mitigate the economic impacts of the COVID-19 crisis and are able to continue their growth and development in the medium to long-term.

Ark Kapital COO and Co-founder Axel Bruzelius says:

“The EGF guarantee will be of huge value for us to realise our vision of breaking down the financial barriers between potential and performance for European Entrepreneurs, and launch debt as a viable alternative or complement to equity for fast growing tech companies.”

European Investment Bank Vice-President Thomas Östros added:

“With over half a billion euros in approved financing, Sweden is an active user of the possibilities of the European Guarantee Fund. The EGF helps channel financing to SMEs who have faced difficulties due to the economic downturn, but can also be used to finance innovative enterprises, to grow their way out of the crisis.”

European Investment Fund Chief Executive Alain Godard said:

“Ark Kapital is active in a niche of Sweden’s financing environment, focusing on tech start-ups that really need capital to grow further in the current circumstances. On top of our normal SME-financing, the EGF really gives us an edge to support that type of company, and we’re happy to have Ark Kapital as a partner for that.”

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments, which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

Founded in 2021 by a team of dedicated experts in data analysis, SME lending and start-up financing, Ark Kapital uses its proprietary data engine AIM to provide financing to a market segment underserved by regular banks. Ark Kapital targets fast growing tech SMEs active in the Software as a Service (SaaS) market. Stockholm has a thriving tech scene, with nearly a quarter of the population in the city employed by a company involved in the tech industry. New regulations and a favorable ecosystem for tech start-ups create a fertile ground for technological innovation, the target segment of Ark Kapital.