Investors flocking to the Herøya ecosystem

The trio of Skaraas, Bamle, and Kjeldsen from Proventia and Friar Venture have noticed increasing interest from investors.

“We can see that the regional fund Friar Venture has already had a positive impact,” praise Petter Skaraas and Jørn Roar Bamle from the innovation company Proventia.

“When the regional fund takes the first step in investing in early-stage and growth companies, it attracts attention from other investors. We are meeting more investors looking for co-investments alongside Friar Venture. This is very positive for the companies connected to us, the Herøya ecosystem, and the region.”

Fourth investment in a year

Recently, Friar Venture invested NOK 28 million in LayerOne alongside Aker, Investinor, and others. This marks the fund’s fourth investment since its inception in 2024. Previously, the fund has invested in three exciting innovation companies based in its focus areas, Telemark and Vestfold.

“We aim to invest in 3–4 companies per year,” says Espen Kjeldsen, head of Friar Venture. “We are in discussions with many and have evaluated around 100 cases over the past 12 months. For companies that we deem to be in a slightly earlier phase, we can take a smaller stake but prefer that other investors take the lead. We always co-invest—this allows us to stretch our capital further while also increasing companies' access to additional funding and expertise.”

Securing NOK 100 million annually

Jørn Roar Bamle from Proventia notes that startup companies connected to the incubator environment are successful in securing funding.

“The companies manage to raise around NOK 100 million annually from private investors and public funding schemes. Since 2012, approximately NOK 1 billion has been injected into these companies, with more than two-thirds coming from private capital. We are very proud of that,” says the Proventia leader.

Energy efficiency in high demand

What types of innovations are most in demand now?

“Companies with innovative solutions for energy efficiency are in high demand, alongside general innovations in sustainability and exports,” says Petter Skaraas. “If you can claim that your solution improves energy efficiency by 20%, customers start listening. Solutions that address current challenges and are market-ready are highly sought after. We already have a company in our sights that we and Friar Venture are working with.”

Challenging for newcomers

How does the capital outlook appear moving forward?

“It’s becoming more difficult for newcomers to secure investor interest,” says Jørn Roar Bamle. “The first round of investment is always challenging, but the situation is even tougher now because investors are focusing more on their existing commitments rather than new investments. They know that follow-on funding rounds are coming for their current portfolio companies. As a result, breaking into the market is more difficult now than before. However, once you secure initial investors, the next round often becomes easier.”

Proventia companies stand strong

Espen Kjeldsen from Friar Venture explains that many of the companies they consider come from Proventia, as well as from the Telemark Utviklingsfond (TUF) and direct applications.

“Companies from the Proventia ecosystem perform strongly compared to many others,” Kjeldsen remarks. “Only a small number make it through the selection process for the incubator program, which includes mentors and advisors. Those that do are well-positioned for growth. It’s important to us that the ecosystem remains well-connected.”

In 2024, 18 companies were accepted into Proventia’s incubator program out of 230 ideas evaluated.

Well-equipped for growth opportunities

The innovation ecosystem at Herøya has become a comprehensive network with more incubator, testing, and funding opportunities than ever before. Proventia has expanded its team to eight employees working alongside Friar Venture, the Research Council of Norway, and the industrial cluster Powered by Telemark. Proventia also hosts the collaboration between business development leaders in the Grenland region.

“What’s the point of being in an innovative incubator environment?” asks Petter Skaraas rhetorically. “Statistics Norway (SSB) has found that companies linked to incubator environments have 15% higher value creation and revenue after three years compared to others,” he answers. “This proof that incubators add value is a huge motivator for me in my work.”

“We aim to be the hub of the innovation community in Grenland. That vision is now becoming a reality,” say the three proud key players.