In 2008, Neqst was founded to take a fundamentally different approach to investing, combining operational and strategic knowledge with financial expertise. Then, as now, we provide unique support and guidance based on industry-focused, hands-on experience.
We’ve always worked with a very specific set of companies: with proven technology, revenues of SEK 50 million and upward, and positioned to achieve exceptional growth with the right support. There may be more tech investors on the Nordic scene now – but we still believe that Neqst stands out from the crowd in critically important ways.
From the start, an important difference was that we invested our own capital, side by side with our investors. We don’t profit from big management fees, we succeed if our companies succeed. As investors, we don’t take wild shots. In fact, we’re pretty risk adverse and our ambition is that every single company we invest in should be successful. We talk a lot about balanced risk - the limited, well-considered risk we take with our investors’ capital and our own.
Our corporate structure allows us to focus on long-term value creation over hype or quick exits. When investing, we often work with companies for a year or more before finding the right investment structure. We also want to get to know the leadership team well - and want them to get to know us. Because we have both perseverance and transactional expertise, complex transactions don’t scare us. Many times we’ve managed to get transactions done where other firms have failed. In fact, some of our best successes have grown from the stickiest of situations.
Finally, we’ve had one focus since 2008: technology growth companies. We were pretty much on our own for a long time, so we’ve had a great opportunity to further refine our approach to our segment. We know this market and we know how to work with entrepreneurs to grow companies into bigger, better, more international entities.
Primarily Nordic region
Software, information technology services, telecommunications and software- and internet-enabled services
Private or public
SEK 50 - 3000 million
Growth stage, profitable
Primary and secondary capital investments
Opportunity to achieve significant ownership and board representation
So how have we partnered with our companies? These are some examples of how we have contributed:
Neqst has a relatively small number of investors. They are entrepreneurs who have built up companies throughout the Nordic region and internationally. Our investors are sector-knowledgeable and as such able to contribute on many fronts. Crucially, they share the Neqst focus on building businesses over the long term.
Having a smaller number of long-term investors provides unique flexibility in our investment mandate, in financing of transactions and in holding periods. We can quickly respond to new opportunities and we are not pressured to exit investments based on arbitrary fund lifecycles.
In our business of meeting with companies and investors, we are often asked for references. We have extensive networks of current and ex-colleagues, co-investors, advisors and other individuals with whom we have worked over the years. By far our most important references, though, are the entrepreneurs, CEO’s and management teams of the companies in which we have invested.
In particular, we encourage entrepreneurs with whom we discuss new investments to meet with the management of our portfolio companies. As we discuss long-term plans, it is important for our future partners to understand how we work and how we can contribute over time.
At Neqst, our value system stems from a passion for building companies that we can be proud of over the long term. Part of this is maintaining a perspective on the larger context of our business and the various stakeholders involved. Neqst maintains a 100% Swedish corporate structure. Our companies pay local taxes and any profits or dividends that are ultimately due to Neqst are taxable in Sweden.
We are proud of the fact that we invest in local entrepreneurs and help their companies to create jobs and deliver value over the long term. Focus on profitability and growth is essential to achieving benefits for all parties.