STUER, DENMARK — Sound Hub Denmark, known for fostering innovation in the world of sound technology, is now taking a significant step with the launch of SoundInvest. This new venture fund is dedicated to making early pre-seed investments in promising soundtech startups from around the globe, further boosting the thriving ecosystem at Sound Hub Denmark.
The fund is backed by the founders of Sound Hub Denmark, Færchfonden and Vald. Birn Holding. It provides a fresh investment avenue for entrepreneurs in the sound technology space.
“SoundInvest is unique. It is the first time that a venture fund focuses exclusively on investments in soundtech. This is made possible through the internationalization that characterizes the technology and business acceleration environment at Sound Hub Denmark, which means that a large part of our investments will be in international startups with global growth potential. An approach which also makes it interesting for larger and international industry players to co-invest.”
–Michael Rohde Böwadt, SoundInvest’s CEO
The partnership between SoundInvest and Sound Hub Denmark forms a strong foundation for nurturing soundtech innovation. The startups participating in Sound Hub Denmark’s global SoundTech Accelerator Program will benefit from this partnership through early-stage investments.
Benefits for Early Stage Investments
“It is a huge growth opportunity for the participating startups in our SoundTech Accelerator Program that they are not only offered help on business development and technical innovation but now also secured a direct investment as an injection to their growth journey,” commented Peter Petersen, CEO of Sound Hub Denmark. “Further, the collaboration will ensure a more long-term and financially sustainable model for the accelerator program.”
The venture fund aims to raise DKK 22 million (~$3.1M USD, with two-thirds of the capital already secured. Notable investors, including Vald. Birn Holding, Færchfonden, Kim Rishøj Holding, and MIROBO Holding, are contributing to the fund. The remainder of the capital will be raised through co-investors.
SoundInvest’s ambitions go beyond the initial fund. Böwadt envisions a second venture fund within a few years, with the potential to raise up to DKK 120 million ($17M USD). This significant interest from international industry players is a testament to the promising future of soundtech innovation.
Færchfonden’s CEO, Claus Omann Jensen, anticipates that SoundInvest will not only provide a financial return but also stimulate growth in the city and region of Northwest Jutland. Sound Hub Denmark’s location in this region is set to benefit from the added investment opportunities:
“Based on our experiences with Sound Hub Denmark’s incubation environment, we are convinced that SoundInvest will generate a market-compliant return and as well contribute to increased growth in Struer and the rest of Northwest Jutland, i.e. because the startups see a benefit in establishing themselves here to stay close to the international powerhouse of Sound Hub Denmark.”
Located in the ‘City of Sound’
Struer already known as the City of Sound, due to the history of Bang & Olufsen, a division of Harman, Sound Hub Denmark and now also SoundInvest, welcomes the new initiative.
“Struer Municipality has over the past five years been a significant partner in Sound Hub Denmark. The hub has created weight behind our place branding, as it has created jobs and business entities here,” said Stuer Mayor, Marianne Bredal. “Struer Municipality is pleased that more risk-averse investors will look towards the City of Sound in Denmark for support of even more of the entrepreneurs and startups visiting and establishing themselves in our municipality.
SoundInvest, founded by Vald. Birn Holding and Færchfonden, is set to become a major player in the soundtech investment landscape. With a strong board of directors, including Henrik Lundum, Claus Omann Jensen, and Leif Jensen, and a seasoned CEO in Michael Rohde Böwadt, SoundInvest is poised to make a significant impact on the sound technology startup ecosystem.
About SoundInvest A/S
SoundInvest A/S is founded by Vald. Birn Holding A/S and Færchfonden. As a management company, it will run the venture fund SoundInvest Fund I and cooperate with Sound Hub Denmark on the recruitment of startups for the SoundTech Accelerator Program. The venture fund will then invest in the selected startups. The goal of the venture fund is to raise a capital of DKK 22 million. A “first close” of SoundInvest Fund I has been completed, and the fund will make its first investments in Autumn 2023. The search for co-investors for a “second close” of the fund is already underway. SoundInvest’s ambition is to launch an additional venture fund, SoundInvest Fund II, with a three-digit million amount in venture capital within three years. The board of SoundInvest A/S consists of Henrik Lundum (CEO of NOVI A/S), Claus Omann Jensen (CEO of Færchfonden), and Leif Jensen (CEO of Vald. Birn Holding A/S). Michael Rohde Böwadt is appointed CEO.
Source: SoundHub Denmark