The investment strategy focuses on fields where we can use the Groups ~140-year-long history of doing business in the ocean industries such as aquaculture, shipping and logistics. We invest in companies that target markets within the aquaculture- and maritime industry, and that provide leading products, technology or services to these markets. More specifically we divide our portfolio into Aquaculture, Technology and Renewable Energy.
We look for companies that have started commercialization, have achieved proof of concept, and have a proven traction in the market. For companies like this, we can contribute with our network, team, and expertise from different companies in the Grieg group to help scale the companies into profitable businesses.
The companies that Grieg Kapital invest in are either in late seed or early growth stage, which generally means that the technology or production method is proven and that scaling and capturing new markets are the main hurdles going forward. The main investment criteria that we evaluate by are:
A great and experienced team that consists of the right people for the job
Must be aquaculture, technology or renewable energy
Preferably a Nordic company, but with a global market potential
We invest in companies aiming mainly at professional customers (B2B)
There must be a (potentially) large and growing market for the product
Proven product market fit and commercial sales
A commercial product is in place, with little technology risk remaining. Preferably TRL 7 and above.
We aim for 10-20% in the first round, and will always prefer taking a board seat
Grieg Kapital invests 5 – 20 MNOK
Grieg Kapital employs a three-step investment process
Every investment opportunity goes through our screening process. This is a first assessment to see if the opportunity qualifies according to our investment criteria mentioned above. As long as we have all the information we need to complete the screening (full investment deck and proposal), our goal is to give initial feedback based on the screening within a week of receiving the proposal.
Our investment analysis dives deeper into the workings of the opportunity. Initially, we will spend time on understanding the finances, business model, competitive advantage and market. If the investment delivers on these parameters, we look into the value potential and team, including management and customer interviews. Lastly, we spend time understanding the company’s current value, future capitalization plan and potential for exiting the investment, as well as the proposed investor consortium. This is typically a 5–6-week process, depending on our capacity at the given moment. If the conclusion is positive, we will engage in advanced negotiations on valuation and terms, and sign a term sheet, before recommending the deal to our board of directors for final decision.
After an investment is recommended and decided upon, we will go through a due diligence process on the items we need more clarity on. This can be an HR-, financial-, legal-, commercial- or technical DD, depending on the opportunity presented. We always try to accomplish this by utilizing the competence within the Grieg Group but will use external expertise when needed.
