Having confirmed the need to support more companies working in audio, sound and acoustics, the owners behind Sound Hub Denmark, Vald. Birn Holding A/S and Færchfonden, have created SoundInvest. The idea for the new venture fund is to invest in the most promising startups and support and develop them through Sound Hub Denmark's SoundTech Accelerator Program.
Intended to act as a progressive, international initiative, SoundInvest extends an additional investment perspective to encourage entrepreneurs from any part of the world to join Sound Hub. "SoundInvest is unique. It is the first time that a venture fund focuses exclusively on investments in 'soundtech.' This is made possible through the internationalization that characterizes the technology and business acceleration environment at Sound Hub Denmark, which means that a large part of our investments will be in international startups with global growth potential. An approach which also makes it interesting for larger and international industry players to co-invest," says Michael Rohde Böwadt, appointed CEO at SoundInvest.
Detailing the fund's mandate, SoundInvest and Sound Hub Denmark confirm that investments in startups will be based on a close collaboration between the two entities. The program is now focusing on talent recruitment and pre-seed investments, adding an early capital injection into the selected startups from the recognized SoundTech Accelerator Program.
"It is a huge growth opportunity for the participating startups in our SoundTech Accelerator Program that they are not only offered help on business development and technical innovation but can now also secure a direct investment as an injection to their growth journey. Further, the collaboration will ensure a more long-term and financially sustainable model for the accelerator program," adds Peter Petersen, CEO of Sound Hub Denmark (pictured below).
"Innovation and accelerator environments, such as Sound Hub Denmark, really gain momentum when financial players and major industry players become interested and start investing in the growth layer. That is why SoundInvest is a significant addition to Sound Hub Denmark. The presence of venture capital can also further increase Sound Hub Denmark's appeal to international startups coming to Denmark when investment opportunities also become part of the offered package," explains Tue Mantoni, former CEO of Bang & Olufsen and former chairman of The Danish Growth Fund.
The goal for SoundInvest's first venture fund is to have a capital of DKK 22 million. Two-thirds of this amount has been raised already, mainly with investments from Vald. Birn Holding and Færchfonden. Kim Rishøj Holding and MIROBO Holding are also among the first investors. With this capital in place, the venture fund is now being launched and the search for potential co-investors (limited partners) intensified.
Michael Rohde Böwadt (pictured above), who is at the forefront of getting more investors on board, explains: "Sound Hub Denmark has achieved international recognition in the sound and acoustic domain through its accelerator programs. Foreign and Danish international players are therefore already showing interest in the possibility of being a co-investor with venture capital to particularly innovative startups within soundtech."
The interest from foreign and Danish international players, also supports Michael Rohde Böwadt's ambition for SoundInvest to launch an even bigger venture fund: "It is the ambition of SoundInvest to establish a second venture fund within a few years, where up to DKK 120 million will be raised for investment in soundtech startups. The potential of raising capital of that magnitude is present based on the interest among the international bigger players with whom we are in contact."
Claus Omann Jensen, CEO of Færchfonden, explains that it is expected that SoundInvest will provide both financial return and benefit the city and region of Northwest Jutland, where Sound Hub Denmark is located. "Based on our experiences with Sound Hub Denmark's incubation environment, we are convinced that SoundInvest will generate a market-compliant return and as well contribute to increased growth in Struer and the rest of Northwest Jutland, i.e. because the startups see a benefit in establishing themselves here to stay close to the international powerhouse of Sound Hub Denmark."
The SoundTech Accelerator Program is a 5-month program where selected innovative startups are supported on their growth journey within from business development and market validation, all the way to product development and go-to-market strategies. The accelerator program is the only one of its kind in the world for the audio industry and attracts a large number of applicants every year. The program is owned by Sound Hub Denmark, which also houses the program's physical camps. The program content is facilitated in partnership with experts and leading global players.
Already known as the "City of Sound", due to its history as the birthplace of Bang & Olufsen, a large Harman facility, and the presence of many audio companies expanded with Sound Hub Denmark, the mayor of Struer, Marianne Bredal, also welcomes the initiative. "Struer Municipality has over the past five years been a significant partner in Sound Hub Denmark. The hub has created jobs and business entities here. Struer Municipality is pleased that more risk-averse investors will look towards the City of Sound in Denmark to support even more entrepreneurs and startups visiting and establishing themselves in our municipality."
Contact InformationSound Hub Denmarck - Peter Petersen
+4540456569 / Email
SoundInvest - Michael Rohde Böwadt
+4522124242 / Email
www.soundhub.dk/soundinvest/
www.soundhub.dk
