Katalysen now transitions into a next phase as a company. In March 2024, we published "Lessons Learned from Five Years ofVenture Development," which summarized the wealth of data and experience we've accumulated since the founding of Katalysen. Three of the most important lessons learned include;

• Collaboration works and is critical for success.
• Having shared interests is critical for success.
• It is easier for a small team of venture developers to create significant value in a venture when focus is placed on removing barriers to growth (not on establishing pre-requisites for growth).

During Q1, we have been very busy implementing these lessons learned in our day-to-day operations across Katalysen. The result isnot a shift, but rather a doubling down on how we approach investing, with a continued focus on collaboration and deal structuring.

With this in mind, and supported by the execution of two "proof-of-concept" transactions in the Q4-Q1 period, we are proud to formally introduce a new investment framework in our financial toolbox: theVenture Targeter Framework (“VTF”).

The Venture Targeter Framework (“VTF”)

VTF exemplifies how we are introducing lessons learned across our organization, and signals our entry into a new era of venture development, characterized by enhanced collaboration and strategic investment structuring. In short, through VTF we can pool a variety of resources ina special purpose vehicle, which in turn invests into an opportunity.

See the note on page 28 for a full introduction to this framework, which allows Katalysen to better;

• Respond to market & value creation opportunities.
• Enrich our portfolio with high-potential companies.
• Combine and incentivize diverse stakeholders in the development of these companies.
• And ultimately provide a convenient and highly attractive platform helping local and global investors to access early-stage innovation.

Market and external investor interest in the Venture Targeter Framework has been even greater than expected. Investors recognize the value and suitability of the VTF approach, especially in the current market climate. Katalysen not only generates value for itself, but also for the entire chain of stakeholders involved in these transactions.

In other news

The market still presents significant challenges, and the Payer Group filed for bankruptcy after the quarter. Note that the PayerGroup was already written down to SEK 0 in Katalysen’s Annual Report for 2023and revised 2023 Q4 report. With this exception, we judge that the portfolio is growing stronger by the week.

With regards to our deal pipeline, we are currently looking at a number of opportunities using the same VTF approach. Two of these transactions have progressed further, both within fintech, and we hope to be able to provide you with further updates on these transactions soon. 

We are also pleased to announce that Katalysen has co-founded SKB.vc, a venture that aims to bridge Japanese early-stage innovation with global market opportunities. Being led by Tobias Mathiasen, COOof Katalysen, SKB.vc is partnering with some of Japan’s largest innovation stakeholders to establish a new seed-stage fund in Japan.

In conclusion, we're excited about the progress we've made during the quarter, and the opportunities that lie ahead. We feel confident that we are onto something fantastic with this “second phase” of venture development, and we remain committed to driving innovation and growth in global early-stage ecosystems. Thank you for your continued support!