A magical character goods brand, which develops quality gift items for kids and licenses its property to renowned manufacturers and entertainment companies.
Developing turn-key services for cold chain monitoring and quality control; from manufacturing, through transportation, storage and sale.
Developing mission-critical tools to manage resources, employees, vehicles, vessels and other mobile assets.
Designing software and hardware to greatly increase productivity, improve yield and maximize accuracy.
A global market leader of white-label Personal Finance Management (PFM) and next-generation online banking solutions.
The next generation CRM & Booking Software that places customer experience at the heart of the travel economy.
Developing online solutions to help schools plan their curriculum for formative assessment and mastery learning.
Developing a complete, pre-certified, cloud-based NextGenPOS solution for cash registers.
Developing a professional IWMS solution for owners and operators of facilities- and real estate portfolios.
Using innovative engineering to develop the ultimate solutions for off road driving in all conditions.
– Arctic Trucks
Empowering employees by delivering the right information to the right people at the right time, in an actionable format.
– Activity Stream
Watchbox is a platform for companies to increase unity between employees and to make the workplace more fun.
– Appollo X
Offering both supply chain management solutions and Microsoft NAV to reduce costs within the supply chain.
– AGR Dynamics
SidekickHealth is a gamified health-behavior change platform and app for predicting, managing and preventing chronic and lifestyle-related conditions such as obesity, heart disease, prediabetes and type-2 diabetes.
Frumtak was founded December 23rd. 2008. The objective was to invest in early stage growth companies that were post seed and had growth potential. This would result in leading companies that could deliver a good return to investors.
At the close of Frumtak‘s investment period on December 31st. 2012, the fund had invested in fifteen companies with nine investments still active. The remainder of lifetime of the fund is used to follow on investments and divest assets.
The board of Frumtak appoints a special seven man investment committee. Its role is to further define the funds investment criteria within the fund‘s bylaws and shareholder agreement.It deals with interpretation of the shareholder agreement or any other issues that could stem from conflict of interest. The committee does not discuss individual investments.
Board of Directors
- Huld Magnúsdóttir Chairman
- Hálfdan Karlsson Deputy Chair
- Margrét G. Valdimarsdóttir
- Hallfríður Kristjánsdóttir
- Davíð Rudolfsson
- Friðrik Nikulásson
- Snæbjörn Sigurðsson
- Nýsköpunarsjóður Atvinnulífsins, Government fund
- Lífeyrissjóður Starfsmanna Ríkisins, Pension fund
- Lífeyrissjóður Verslunarmanna, Pension fund
- Gildi-lífeyrissjóður, Pension fund
- Arion Banki, Bank
- Íslandsbanki, Bank
- Landsbankinn, Bank
- Birta lífeyrissjóður, Pension fund
- Stapi-lífeyrissjóður, Pension fund
- Söfnunarsjóður Lífeyrisréttinda, Pension fund
Frumtak II started in February 2015. The fund builds on the legacy of Frumtak. The fund invests in early stage innovative companies that are post seed and show great potential for growth. The fund invests primarily in Iceland but is allowed to invest abroad as allowed by law in connection with its portfolio investments to ensure success in foreign markets.
Frumtak II emphasizes to invest in companies where growth and sales in foreign markets are the primary objective, but does not specialize in any particular industry. The fund wants to ensure that original ideas get a chance and thereby increasing the probability of creating growth and value. By doing this, it enforces the image that Icelandic innovation is profitable.
Frumtak II aspires to be a trusted and popular ally. The fund strives to have a good relationship and co-operation with all stakeholders within the start-up and innovation community. The fund puts a special emphasis on co-operating with stakeholders outside Iceland.
The board of Frumtaks 2 makes all investment decisions and decides on various aspects of the investments process, both, buy and sell, based on suggestions from the fund‘s investment managers.
Investment size is typically ISK 100-500 million. No one investment can exceed 15% of committed capital, unless specially approved by the board.
Typical holding time is three to five years and that the fund has divested all its assets within the seven year lifetime of the fund. Return on individual investments should be 30% p.a. at minimum.
Board of Directors
- Ásthildur OtharsdóttirChairman
- Gunnar V. Engilbertsson
- Magnús Þór Torfason
- Sigurbjörn Sigurbjörnsson – Söfnunarsjóður Lífeyrisréttinda – formaður
- Björn Hjaltested – LSR
- Davíð Rudolfsson – Gildi lífeyrissjóður
- Friðrik Nikulásson – Lífeyrissjóður Verzlunarmanna
- Margrét G Valdimarsdóttir – Landsbankinn
- Lífeyrissjóður Verzlunarmanna, Pension fund
- Gildi lífeyrissjóður, Pension fund
- Lífeyrissjóður starfsmanna ríkisins, Pension fund
- Birta lífeyrissjóður, Pension fund
- Stapi lífeyrissjóður, Pension fund
- Landsbankinn hf., Bank
- Söfnunarsjóður lífeyrisréttinda, Pension fund
- Almenni lífeyrissjóðurinn, Pension fund
- Lífsverk lífeyrissjóður, Pension fund
- Íslenski lífeyrissjóðurinn, Pension fund
- Brú lífeyrissjóður, Pension fund
- Frumtak Ventures ehf., Private limited company
Our Investment Process
When we find an exciting investment project we discuss this at our partner meeting and decide whether to present this to the board, which decides on investments. Board meetings are usually once a month. The board presentation includes a 50 minute session with the entrepreneur where we expect at least 10-15 minutes for Q&A. It is important that the entrepreneur can clearly and effectively explain himself and the investment opportunity.
After the meeting, there is a decision to do one of three things, reject the project, investigate more or move to a term sheet. As paperwork takes time, especially due diligence, it is important that the company has done its homework in terms of preparing and collecting all the necessary documentation. If this is done properly it makes things go smoother. Frumtak has a policy of having the investment process, from board introduction to payment, stay within 90 days.
This would seem like the end of the process but this is only the start of a journey that is intended to reap results. That is why it is important that there is a mutual understanding of expectations and contribution from stakeholders. In particular the entrepreneur needs to understand that the investment fund can be an important ally with its advice and connections but is not responsible for day to day operations or funding. The investor has a strategic role where he supports the entrepreneur in achieving his goals. In the same way as the entrepreneur puts this support to good use, he needs to realize that the fund has a pre-determined time frame for the investment and may have to sell its holdings sooner than the entrepreneur. This ensures a win-win situation for all stakeholders.
Meet the Team
Svana is Co-founder and General Partner of Frumtak Ventures. She has overseen several mergers and acquisitions internationally and has extensive experience founding and leading startups. Before returning to Iceland in 2009, Svana studied, lived and worked in The Netherlands, South Africa, Brazil and the United States. Svana has an international MBA from Nyenrode University in The Netherlands with program studies at the Kellogg School of Management in the US and at the Stellenbosch University in South Africa. She holds several Board of Directors positions in companies across the Frumtak portfolio.
Chief Financial Officer
Board of Directors
Magnús Þór Torfason
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Talking to Frumtak
We at Frumtak encourage entrepreneurs to visit us for a “chat” because the conversation can deliver more value than an investment. As Frumtak is a growth fund, the companies we invest in need to have a product, a customer and turnover in order to be eligible for investment. Even though this is not often the case, the „chat“ enables us to get acquainted, which saves time later on if the company is considered for investment. The „chat“ establishes a foundation for a mutual understanding and to forming a band of trust which is the premise of working together in the future.
The simplest way to contact us is to send us an e-mail requesting the meeting. Please be advised that we only invest locally here in Iceland.
Send Us a Message
You may also simply fill up the form below and we will get back to you as soon as possible.