BTO invested a million Norwegian kroner in pre-seed-capital in Rock Physics Technology, on behalf of Innovation Norway, in 2016. The stocks have now been sold for 1,435 000 NOK to Norwegian Innovation capital IV, a gaining of 43,5 percent. After the sale, the companies value is set to 18 million NOK.
– The government plan for founders has as a goal to increase the access to venture capital and competence for start-ups in an early phase. In this case, the pre-seed-scheme has triggered investment and contributed to value in terms of jobs and growth, says Rannveig Fadum, Head of funding for entrepreneurs at Innovation Norway.
Science based solution
In addition to the million NOK invested from BTO, Rock Physics got 1,200 000 NOK from other investors.
The company is developing digital software that will help geologists and geophysics to locate, refine and increase production of oil and gas deposits primarily, but the technology also has applications for storage of CO2 and geothermal energy. The solution is based on more than 10 years of research at the Department of Geoscience at the University of Bergen. The Norwegian Research Council has helped fund the research and commercialization made by Rock Physics Technology.
– We are happy to contribute to the first sale of stocks in one of the pre-seed-companies. BTO has been strongly involved in Rock Physics Technology from the start. The pre-seed-funds has made it possible for us to activate other investors and thus accelerate the development. This has given us the opportunity to focus on how we could build the company in the best way. Without the pre-seed-funds the speed of the development for the company would be slower, says Anders Haugland, Managing Director of BTO and Chairman of Rock Physics Technology.
The sale ensures increased capital inflows and further growth
The meaning of the pre-seed-scheme is to give the founders easier access to capital and competence, preferably from business-angels-investors. The pre-seed-capital goes through intermediaries like BTO, who borrows the money from Innovation Norway to invest in start-ups. The premise is that the companies collects at least as much money from other investors.
– The pre-seed-funds made it easier for us to get private capital in an early phase, and to dare to focus on our own product and solutions. For the investors, the threshold to invest lowered when they could stand together with a strong financial partner. The fact that the company now is going to be sold gives us even better access to capital and competence to develop the company further, says Åsmund Drottning, Managing Director of Rock Physics Technology.
Rannveig Fadum, Head of funding for entrepreneurs at Innovation Norway. E-mail: Rannveig.Fadum@innovasjonnorge.no Mobile: 902 07 850
Anders Haugland, Managing Director of BTO and Chairman of Rock Physics Technology. E-mail: Anders.Haugland@bergento.no Mobile: 926 02 381
Åsmund Drottning, Managing Director of Rock Physics Technology. E -mail: email@example.com Mobile: 920 92 759