SoundInvest: New progressive venture fund investing only in innovations with sound
October 5, 2023
The accelerator and incubator environment at Sound Hub Denmark is now further strengthened by the founding of SoundInvest.
A new venture fund for early preseed investments directly into the pool of talented soundtech startups from all over the world.
The fund’s search for additional co-investors has already begun.
The owners behind Sound Hub Denmark, Færchfonden and Vald. Birn Holding, has just founded SoundInvest, which through their fund will invest in the soundtech startups taking part in Sound Hub Denmark’s global SoundTech Accelerator Program.
A unique, progressive, and international venture fund
SoundInvest adds a unique investment leg for global entrepreneurs within sound to join Sound Hub. Michael Rohde Böwadt, appointed CEO at SoundInvest, describes the fund’s mandate as follows:
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.
Photo: CEO of SoundInvest, Michael Rohde Böwadt
Self-reinforcing partnership for growth with sound
The investments in startups will be based on a close collaboration between SoundInvest and Sound Hub Denmark. The two companies have partnered up on talent recruitment and preseed investments, adding an early capital injection into the selected startups from the recognized and globally oriented SoundTech Accelerator Program. Peter Petersen, CEO of Sound Hub Denmark, looks forward to the collaboration with SoundInvest:
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 now also secured 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.
Photo: CEO of Sound Hub Denmark, Peter Petersen
Benefit to the sound innovation and accelerator environment of Denmark
Aside from making the SoundTech Accelerator Program financially sustainable, the added investment opportunity holds great development potential for Sound Hub Denmark as a whole:
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.
Co-investments from the sound industry
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, 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.
Expectations of market-compliant returns and growth in the region of Northwest Jutland
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 City of Sound welcomes the new investment opportunities
Struer already known as the “City of Sound”, due to the history of Bang & Olufsen, a division of Harman, Sound Hub Denmark and now also SoundInvest, welcomes the new initiative. The mayor Marianne Bredal concludes:
Struer Municipality has over the past five years been a significant partner in Sound Hub Denmark. The hub has created weight behind our place branding, as it 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 for support of even more of the entrepreneurs and startups visiting and establishing themselves in our municipality.
About SoundInvest A/S
SoundInvest A/S is founded by Vald. Birn Holding A/S and Færchfonden. As a management company it will run the venture fund SoundInvest Fund I and cooperate with Sound Hub Denmark on, e.g., recruitment of startups for the SoundTech Accelerator Program. The venture fund will then invest in the startups selected. The goal of the venture fund is to raise a capital of DKK 22 million. A “first close” of SoundInvest Fund I has been completed so the venture fund can make its first investments during Autumn 2023, while the search continues for co-investors for a “second close” of the fund. For SoundInvest, it is the ambition to launch an additional venture fund, SoundInvest Fund II, with a three-digit million amount in venture capital within three years. The board of SoundInvest A/S consists of Henrik Lundum (CEO of NOVI A/S), as well as Claus Omann Jensen (CEO of Færchfonden) and Leif Jensen (CEO of Vald. Birn Holding A/S). Michael Rohde Böwadt is appointed CEO.