RealTime IT News

Investors Put $56.4 Million into Startupfactory

[London, ENGLAND] Sweden's largest holding company Investor AB announced Tuesday a joint investment of $56.4 million in venture capital company Startupfactory with partners Softbank Corporation and Carnegie Holding AB.

Startupfactory has focused on wireless communication, an area that particularly excites the investors, according to Borje Ekholm, managing director and head of new investments at Investor AB.

"The partnership strengthens our investments in wireless communication development at the early stages," said Ekholm.

Founded in August 1999, Startupfactory is one of very few VC companies to focus almost exclusively on wireless communications. It says it wants to be "the obvious partner" for wireless entrepreneurs who aim for global leadership in their respective sectors.

Rolf Skoglund, chairman of Startupfactory and a former Microsoft vice president, said bringing Investor, Softbank and Carnegie in as partners would open up tremendous opportunities for the entrepreneurs supported by his company.

Investor, with its total net asset value of $20 billion, is increasingly keen to put money into start-ups. Teaming with Softbank International Ventures -- which originally helped Yahoo! and E*TRADE -- and Nordic investment bank Carnegie is clearly a powerful combination to back a VC firm.

Startupfactory aims to help entrepreneurs transform business ideas within the mobile Internet into full-fledged companies. It will assist in business development, recruiting and financing.