Nexit Ventures, the venture capital firm that specialises in investing in wireless and mobile technology companies, announced the closing of an additional €10 million, boosting its Nexit Infocom II fund to €85 million. The Finnish VC is targeting some additional commitments for this fund, which will have its final closing in the first half of 2009.
Nexit secured the new commitment from Kasvurahastojen Rahasto Ky, which is a new fund managed by Finnish Industry Investment Ltd. This fund-of-funds makes investments in venture capital funds that focus on promising unlisted growth companies in Finland. Kasvurahastojen was established by government-owned investment company Finnish Industry Investment Ltd and Finnish employment pension companies.
“The current market situation offers both new challenges and opportunities for the investors. Our first two investments are with funds that have vast experience in business development and a well-established market position. Our investment will also increase the critical mass for these funds, which is necessary under the present financial situation,” comments Esko Torsti, chairman of the investment board of Kasvurhastojen.
The Nexit Infocom II is making equity investments in early and growth stage mobile and wireless technology and service companies, primarily in the Nordic countries and the US. The initial investment typically ranges from €1–5 million, with up to €10 million invested into any one company over its lifetime. The fund has to date invested into four companies, Axel Technologies, Ekahau, Funambol and Conformiq.
“We are grateful to Kasvurahastojen Rahasto Ky for their confidence and support, specifically during these tough times and we also salute their strategy to support the early-stage VC activity at this stage. We strongly believe that the next few years will be looked back upon as one of the great times to do investments, and we are confident that some of those opportunities can be found amongst the Nordic mobile and wireless startups,” said Michel Wendell, General Partner of Nexit Ventures.
“We continue to see great synergies between our two home markets, as the Nordic market has the long experience, deep technical skill set and the presence of two industry gorillas, and the US West coast is a key node in the global mobile eco-system and also is creating lots of interesting deal flow specifically in mobile services and entertainment.”