TrønderEnergi, Adolf Øiens Fond, SpareBank 1 SMN, and several Trøndelag investors are contributing 30 million kroner to establish the early-stage fund Gnist. The fund has already made its first investment—in a Trøndelag-based knitting tech company.
One of the main goals behind the establishment of Gnist is to keep the brightest minds and the good ideas in Trondheim and Trøndelag, so that the startup companies remain here, even as they grow larger.
-The lack of early-stage capital for a startup has been a problem in Trondheim for several decades. The technology, the people, and the environment have been here, but the money has been lacking, which has led many companies to relocate from Trøndelag to find funding. By establishing Gnist, we hope to encourage more to stay in Trondheim and Trøndelag, says the initiative taker for the fund, CEO Ståle Gjersvold at TrønderEnergi. The entrepreneur network TrønderEnergi and the Adolf Øien’s Fund are both contributing ten million kroner each.
SpareBank 1 SMN will be the third-largest investor, contributing five million kroner. Auticon Holding and the alumni network from NTNU's School of Entrepreneurship are also investing a total of around five million. The alumni network, in addition to being an investor, will play an important role as a network builder.
In total, Gnist will thus have a capital base of 30 million kroner from the start.
- Lack of early-stage capital hampers growth potential in Central Norway. This is the clear feedback from our partners within the innovation environments around Central Norway. Initially, we are joining Gnist, which we believe will become an effective tool to strengthen the region's unique advantages through NTNU’s presence, says CEO Jan-Frode Janson at SpareBank 1 SMN.
Invested
Gnist has already made its first investment. It is 750,000 kroner in the super exciting knitting technology company Dreamknit, founded by two former industrial economics students at NTNU, Marte Eirin Stenvaag from Malvik and Ingrid Volden Smehagen from Fannrem.
Dreamknit, established in the entrepreneurial community Digs in Trondheim, allows customers to design their own knitting patterns, creates patterns for them using algorithms – and sells the recipes.
- We wanted to create something based on our own hobby, knitting, drawing upon our technology and entrepreneurial background, with a base in Trondheim. We are very grateful, proud, and humbled that Gnist chooses to invest in us! Thank you so much for helping to realize our big dream, say the entrepreneurs.
Knitting as a trend flourished globally during the pandemic. With nearly 100 million active knitters worldwide, they are aiming at a market worth billions. The company has already secured over 1000 customers, and the numbers are rapidly growing.
Inspired by football, A feature that makes Gnist a uniquely early-stage fund is the ambition to also redistribute money back to the entrepreneurial communities that contributed to the companies' successes. The recipients of these funds can be incubator environments, organizations, and supporters, who have made the establishment possible. The inspiration and model are drawn from football.
- When Rosenborg sells a player to a major club, there is cash flowing back to the clubs that were responsible for the important development during the childhood and youth years. This feels quite natural in football, and we now want to adopt this model into the finance world, so that those who have contributed all along also get something in return for their efforts, says CEO Thor Richard Isaksen at the startup incubator 6AM, who will lead the daily operations in Gnist.
- At 6AM, we give back part of our "salary" from working with the fund to the ecosystem. This is a commitment we take on as managers. I don't think this has been done before, and we hope others will follow our lead. Having a healthy and sustainable ecosystem for entrepreneurs is a shared responsibility, says Isaksen.
Realizing the Dream
The initiative taker for the fund, Ståle Gjersvold, says that he and TrønderEnergi, through a decade of collaboration with, among others, the student organization Spark at NTNU, have seen the challenge entrepreneurs face in securing enough capital and thus know how difficult it can be.
- The entrepreneurial environments in the city have long been driven by big hearts, a lot of idealism, and thin wallets. By establishing Gnist, we hope to help some entrepreneurs realize their dream, strengthen the communities around them, and at the same time ensure that the businesses stay in the city. And of course, we aim to create profitable investments for everyone involved, says Gjersvold.
