There are 3 big discussions Norway needs to have separately, before we take them together.
1. If we agree that innovation is key for Norway and that we need more companies to start, grow, and succeed, then we have to ask: how are these companies going to get funded? The fact is, most can’t list on the stock market, and not many are bankable. So that leaves us with private equity (money in exchange for ownership) or grants (just money). Private equity is the most market-driven approach, and it’s the most sustainable long-term. It can come in many forms—early-stage or later, through direct company stakes or through fund investments.
The main thing here is that we need to understand the full journey of how companies get funded in Norway (from founding, to growth). And then we need to decide which parts of that journey need more support than others.
Mario Draghi and the European Commission have called for a major review of the innovation cycle across the EU. Norway should do the same.
2. Once we’ve mapped the whole funding journey, the next question is: where is equity finance coming from in Norway today, and what’s missing? Rather than focusing on just one type of investor, like pension funds, we need to consider all investor types—private investors, government agencies, banks, foundations, corporations and others—and truly understand the role each can play in funding innovation.
There’s a lot we can learn from our neighbours. In Finland, Nordea’s asset management team has helped anchor many Finnish funds. In Iceland, pension funds put 2% of their assets into venture capital, which has helped a small country punch above its weight in the venture world. In Denmark, Chr. Augustinus Fabrikker Foundation invests actively in emerging funds. And in Sweden, the AP funds are active private equity players. Let’s not forget that Sweden’s Pension Fund, Sjätte Ap-Fonden, along with Skandia (an insurance company), sponsored Creandum, a Nordic top tier fund, and an early investor in Norway’s success Kahoot!.
Every Nordic country is doing this self-check right now. So is the EU exploring ways to deepen capital markets for Europe’s most promising companies. And so is the rest of the world at COP debating how to finance the global green transition and climate action.
Norway needs to do this self-assessment for is own benefit but also to avoid being left behind in global discussions on the future of finance.
3. Once we understand the role of equity finance in innovation, and we know what sources we have and what we’re missing, we’re ready to ask: what role should the state play, and how can state instruments, like Investinor, best support the companies of the future in Norway?
It’s good to remember that state instruments are just tools governments have to reach specific goals. If the Ministry of Trade isn’t seeing the results they want, it might be because they don’t fully understand how to use the tool.
