Sweden-based Scania launches second venture capital fund at €182.8M: Know more

Sweden-based Scania, an automotive company, announced on Tuesday, November 29, that it is launching a new, SEK 2B (nearly €182.8M) investment vehicle, Scania Growth Capital II. This comes after the company witnessed the success of its first venture capital fund, Scania Growth Capital I. The new fund will be managed by East Hill Equity.

Scania Growth Capital II  venture capital fund will maintain its predecessor’s focus on the most “attractive” companies and entrepreneurs in the B2B IT sector. The purpose is to give founding teams a thorough investment experience. 

According to the company, the Fund will offer assistance through a flexible and knowledgeable investment team in addition to giving access to the market and technological know-how of Scania.

Christian Levin, CEO and President of Scania, says, “Having seen the development of Scania Growth Capital since 2016, we now want to accelerate this successful initiative. The insight for Scania in new relevant areas beyond our current core business, and the mutual beneficial collaboration with innovative tech companies in adjacent areas, is a true formula for success; especially so in this dynamic time requiring new ways of working in our market.”

What to expect from the new Fund?

Established in 2016, Scania Growth Capital has invested in nine companies through the Scania Growth Capital I fund. Its funding initiatives also include Seed investment in German unicorn Sennder GmbH in 2017.

Scania Growth Capital II, will make wide investments in B2B technology, including software, products, solutions, and services related to mobility, connection, autonomy, electrification, smart factories, and sustainability. It will target innovative businesses in industries where the fund can provide not just capital but also other forms of added value.

Gustaf Sundell, Executive VP and Head of Mobility Solutions at Scania, says, “What we have learned is that it is essential for Scania to collaborate with smaller companies and initiatives that have the greatest potential to support our continued development and growth. We have also seen that the venture businesses can benefit from our broad and deep industry knowledge.”

East Hill Equity, a business with substantial expertise in managing venture capital investments in the B2B market, will be in charge of managing Scania Growth Capital II. East Hill Equity has offices in Stockholm and Berlin.

Christian Zeuchner, Partner at East Hill Equity, says, “In order to attract the most interesting companies and strongest teams, a successful venture capital fund needs to provide value to its portfolio companies beyond capital and needs to be centred around the needs of entrepreneurs. Our ambition is that our unique set-up, together with Scania, provides a best-of-both-worlds experience for entrepreneurs.”

“Driving the shift towards a sustainable transport system”

Scania claims to be a world-leading provider of transport solutions, including trucks and buses for heavy transport applications, combined with an extensive product-related service offering. It also offers vehicle financing, insurance, and rental services to enable its customers to focus on their core business. Scania is also a leading provider of industrial and marine engines.

Scania’s aim is to drive the shift towards a sustainable transport system, creating a world of mobility that is better for business, society and the environment. It looks to achieve a 20 per cent reduction in CO2 emissions from products during the user phase by 2025, with 100 per cent in 2015 as the baseline. From 2015 to 2020 the reduction is 4 per cent.