Global Spin on the Search for Seed

Nordic Prowess

The heavy Nordic representation reflects the scientific prowess of that region in areas such as clean power generation, medical devices, pharmaceuticals, and IT and telecommunications infrastructure. The 2006–2007 Global Competitiveness Report from the World Economic Forum ranks Finland second, Sweden third, Denmark fourth, Norway 12th, and Iceland 14th on the list of most competitive of 125 na-tions. The rankings rate a country’s ability to prosper by how productively it uses available re-sources, and are based on public data and the findings of an opinion survey of 11,000 business leaders worldwide.

Korsmo says presenting companies have raised more than $100 million through the forums since their inception. He argues that the forum is right for the times, as companies grow by tapping into global talent pools.

Consider Vironova, a biotechnology company in Nacka, Sweden, a suburb of Stockholm, that specializes in virus analysis and antiviral drug discovery. The company grew out of research at Stockholm’s prestigious Karolinska Institute, which oversees the competition for the Nobel Prize in Medicine. The company presented at the Minneapolis Seed Forum in May.

Jonas Velander, Vironova’s vice president for business development, spent the day after the forum in a whirlwind of tours and meetings with officials from the Mayo Clinic, the University of Minnesota, and other medical industry players. The company is seeking ties with researchers here.

The first Minneapolis forum, held last November, focused exclusively on medical-technology companies, and six Norwegian start-ups presented. The May forum offered a more diversified menu of companies, including two from Sweden. Beyond Vironova, the list included a producer of reverse-osmosis systems to create clean water, a retailer featuring a Norwegian heritage theme, manufacturers of solar products and measuring devices, a software company, and a producer of energy-efficient engines designed to extend electric vehicles’ range.

The amounts of money the companies are seeking vary widely. Solkraft Innovation, an Olso-based solar manufacturer, is looking for up to $115 million. OM Måleteknikk, a measuring device maker also headquartered in Oslo, is asking for $600,000 plus marketing know-how.

Several of the presenting companies are thinking about or would consider locating plants or offices in Minnesota. Sonitor Technologies, an Oslo company that uses an ultrasound indoor positioning system to track patients and assets in hospitals, participated in the first Minneapolis forum via an Internet connection. In an e-mail, CEO Bo Ragnar said the company raised capital and found a CEO for a subsidiary as a result of its New York presentation. The company is talking with hospitals and industrial partners in the Twin Cities area.



Planting the Seed

Both Minneapolis meetings have been held at the princely Windows on Minnesota venue atop the IDS Center. Presenters gave 30-second “elevator pitches,” then delivered more detailed descriptions of their companies.

A fact sheet on the forum’s Web site says that “the lowest number of participants is regularly not less than 30 or 40,” and most of the events draw at least 50 investors. Attendance at the Minneapolis meetings has been below those levels. The May forum drew about 25 attendees, including some who weren’t investors. “They weren’t as well attended as we had hoped,” Mueller says of both meetings here. So far, neither he nor anyone else could cite an example of where the forums have led a presenter to land investment from Minnesota.

Still, Mueller points out that building relationships between investors and entrepreneurs can take time.

Ivar Sorensen, a Minneapolis consultant with many Norwegian contacts, notes that the difficulty of raising seed money is hardly a Minnesota-only problem. “It’s a problem in the U.S.,” he says. “It’s a problem in Europe. It’s hard everywhere. I haven’t met the start-up company yet that couldn’t use more capital.”

But the capital needs are only part of this picture. Here, the Seed Forums are providing a springboard to forge all sorts of new business relationships between Minnesotans and Norwegians. And the forums offer a down-home perk as well. Some of the visitors can stay with Uncle Ole and Aunt Lena when they come here. Call it Minnesota’s “Norwegian factor.”