Minister for Enterprise, Mikael Damberg. Photo: Ulla Engberg / Radio Sweden
Minister for Enterprise, Mikael Damberg. Photo: Ulla Engberg / Radio Sweden

New structure for investing state venture capital

"The state and the capital works together in this"
3:28 min

Following scathing criticism from the National Audit Office in 2014, the government has now proposed a new structure for state venture capital funding.

Mikael Damberg (Social Democrat), the Minister of Enterprise, told Radio Sweden that there are some sectors with "long term horizons on investments that the private sector doesn't fully dare to take the risk that is necessary for society as a whole, so I think the state has a role to play, but with this new proposal, we also say that the state should always work together with private capital."

In 2014, when the former Alliance government was in power, the National Audit Office criticized the system for state's investments of venture capital into the private companies. The audit office charged that often capital was being invested too late, and that it was being limited to certain regions and fields.

Damberg insisted that the new proposal solves the problems by getting private and public money to work together, as well as "working in early stages, and actually get(ting) more of the state capital to work to create growth and new jobs."

The proposal is entitled "The state and the capital," which comes from an old punk band and radical left group.

"It's very much in line with the lyrics of the song, because the state and the capital work together in this and I think that's exactly what we should do in a small open economy as Sweden is, to actually see that the state can help also the private equity funds to do investments in early stages in growing companies," Damberg said.

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