Active Owners Create More Jobs (Swedish Private Equity & Venture Capital Association (SVCA))

Summary

• In 2014, total invested equity in Swedish companies reached 8 100 billion SEK, with foreign owners accounting for 50 percent of the total.p.14
• Between 2007 and 2013, job creation in Sweden was led by micro companies (+69 thousand employees) and small companies (+68 thousand employees), while large companies reduced workforce by 17 thousand employees.p.10
• The concentration of early-stage development capital into the high-tech sector increased substantially from 31% of investments in 2007 to 55% in 2014.p.9
• Half of the 8 100 billion kr invested equity in Sweden in 2014 was actively owned, while the remaining half was passively managed.p.19

Key insights

1. Foreign investors accounted for 50 percent of the total 8 100 billion SEK invested equity in Sweden in 2014.p.14
2. Employment in Swedish enterprises with over 5000 employees decreased by 17 thousand employees between 2007 and 2013.p.10
3. Micro companies with fewer than 10 employees added 69 thousand employees in Sweden between 2007 and 2013.p.10
4. High-tech captured 55% of Swedish early-stage development capital funding in 2014, compared to 31% in 2007.p.9
5. The average investment size for early-stage development capital funds dropped from 9,8 MSEK in 2007 to 6,7 MSEK in 2014.p.9
6. For medium-small companies (50–249 employees), active capital yielded a +5 p.p. higher employment growth rate than passive capital.p.21
7. Sweden ranked second in Europe for stock market capitalization relative to GDP in 2013, behind Switzerland and the UK.p.6