Frumtak Ventures

An Icelandic early stage fund, Frumtak Ventures says it backs founders who have shown some early traction and could become global leaders in their field. Its approach is concentrated and hands on, and it states that it stays with the companies it backs from their first rounds up to a public listing, and is not simply a source of cash.

How an investment decision gets made

The firm describes a process meant to start early. A first meeting does not need a polished pitch deck or even a prototype, and founders can email the team directly. A few more conversations follow, in which both sides look closely at the market and the business model, a phase the firm compares to dating. The founder then presents to the full partnership and to a board drawn from the business world, after which the team reviews the company from top to bottom and decides together, since its process is consensus driven. According to its Icelandic pages, the board usually meets monthly, the founder presents for about fifty minutes with time for questions, and the aim is to move from formal consideration to funds in the company within ninety days.

A partner after signing

Once a deal is done, the firm says it becomes the founder's first call in good times and bad. Its own guidance to founders stresses that an investor can be a valuable ally through advice and contacts but does not take over responsibility for running or financing the company, and that investors have a limited time horizon and may sell before the founder does.

What its founders are building

The portfolio the firm shows covers software and technology businesses in many areas:

• A cloud platform where ship owners and charterers share vessel data.
• A digital care platform for chronic illness, and a health app using behavioural economics and gaming to reduce lifestyle related disease.
• Real time supply chain visibility delivered as a service.
• Software for hotel operations, travel booking and event marketing.
• Digital banking and household finance tools.
• HR software for onboarding, and a specialist in diversity, equality and inclusion.
• A sports team management and calendar app.
• Sound simulation and spatial audio technology.
• A fantasy world and lifestyle brand from Iceland.

Recent news on its site covers funding rounds for several of these companies, and the purchase of two companies by an Icelandic software firm serving sport and entertainment.

Frumtak Ventures is a venture capital fund from Iceland that invests at an early stage. Its focus is on founders who already show some traction and could grow beyond the home market. The firm works with its portfolio companies from the seed stage through to a possible stock market listing.

What Frumtak Ventures does

• Early-stage funding: investment in young companies, with a concentrated and hands-on approach.
• Partner involvement: the team says it acts as a working partner after a deal is signed, not only as a source of money.
• Consensus-driven decisions: founders pitch to all partners and to a board of business leaders before a decision is made.
• Early conversations: a first meeting can happen before a polished pitch deck or prototype exists.

Who it serves

Founders in Iceland with potential to grow internationally. Portfolio companies named by the firm include software businesses in health, travel, sport, hospitality and banking.

Key facts

• Based in: Iceland
• Stage: seed onwards
• Approach: concentrated and high-involvement, with a consensus-based process