12 March, 2021

Breakit review: Entrepreneurs from the suburbs (orten) get only 0.81% of capital investment

Breakit's review found that only one company from the suburbs (orten) has managed to obtain capital from Sweden's top investors in recent years. Similarly, venture capitalists have invested in 86 startups with an address registered in Stockholm's inner city.

What does it take to get investors putting capital into your business venture: is it the place/area you come from, or is it a matter of the network you build or your educational background?

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" In the spring of 2016, a doubt seriously began to take root in Khalid Qassim's (co-founder of Transfer Galaxy) head. Until then, he and Yosef Mohamed (CEO and co-founder of Transfer Galaxy) had felt convinced that they would raise capital for their startup Transfer Galaxy. Somehow it would work out. The numbers spoke for themselves. The growth they showed was impressive, and they were a strong team.

Still, they received zero response from the investors they contacted. A compilation they would make a little later made everything clear. Of the 104 emails they sent to business angels and venture capitalists, they had not received a response from a single one. Not a single answer!..."

Read the full news feature (the article is in Swedish)