Nordic Bloom is your platform for alternative investments
and offers exclusive access to top performing venture funds in the US
Nordic Bloom gives you an attractive opportunity to diversify your portfolio. You get access (EU gateway) to some of the most prestigious and best-performing venture funds in the US, which are otherwise reserved for US investors. This gives you access to a unique investment tradition that has been refined and proven for more than 100 years.
The overall goal for all Nordic Bloom funds is to achieve a ranking in the top quarter of all US venture funds in the same category, also called "1st Quartile"
Based on performance data from e.g. Cambridge Associates and our own venture investments over the last 10 years, our funds on average fulfil our selection criteria.
Our average gross IRR as of 31 December 2023 achieved over the last 20 years in our fund portfolios with closed investment periods is 20%+.
Our specific performance figures for the individual funds and our basic investment philosophy are available on request.
At the same time, as an authorised AIFM, we have created a cost-efficient fund structure.
Hear how selected investors experience Nordic Bloom. Some have been with us for over 10 years, and several have been involved in more than one investment.
I have been an investor in most of the Nordic Bloom funds for the last 10 years or so, and have emphasised the "wholesale based" approach to Silicon Valley based venture funds, which are among the world's best and not usually offered to investors like me, but by invitation only.
At Nordic Bloom, I have found the right combination of alternative investment opportunities with a clear time horizon and tied-up liquidity, as well as professional mediation with transparency on both possible gains and, not least, possible risks.
As an investor in several funds, I have been extremely satisfied with the development of these funds and not least the risk diversification, which for me is a cornerstone of this type of investment and which cannot normally be achieved through the usual Nordic or even European-based funds.
Nordic Bloom's venture funds give me a unique opportunity to invest through some of the most well-connected venture funds in Silicon Valley and Boston. Historically, these funds have given above-normal returns among venture funds, but have also been completely out of reach for most Danish investors. The fund I'm in follows this pattern. In addition, the administration has been service-oriented when I have needed information of various kinds.
I'm invested in 3 of Nordic Bloom's newest funds and have high expectations for a good return weighted against the risk.
Investing in the venture capital market is inherently at the high end of the risk scale, but I believe that by investing
Through Nordic Bloom, you get access to the best funds in the venture segment as well as significant risk diversification.
It's probably my entrepreneurial background that has given me the courage to invest in venture rather than just putting my money in the C25 carousel. Possibly with higher risk and a longer commitment of my funds, but with Nordic Bloom I have a unique feeling of having made a safe investment with the prospect of a significant return. Time will tell if my gut feeling is right, but so far it looks good. I'm also invited to Nordic Bloom Events, where there are lectures and presentations of great social relevance, and good opportunities to network with other investors.
At Nordic Bloom, I have first and foremost experienced a very high degree of orderliness and competence in mediation and administration. At the same time, I have gained access to an exciting investment universe that a private investor like myself would never have had access to.
As an investor at Nordic Bloom, I appreciate being part of a small "investment club" where I get a unique mix of the opportunity to invest in a unique selection of top-performing US venture funds combined with ditto unique networking among the investors at Nordic Bloom. The latter not least through their always relevant and exciting events that are organised on a regular basis.
You probably have a number of questions about our concept and your options. It's normal, most people do. Below we have compiled a number of the most obvious comments, objections and questions that we are most often met with. If you don't find the answer you're looking for, please reach out to us. No question is too big or too small.
The answer is yes. Venture investments would be considered a risky investment by most advisors. Especially the so-called "early stage" investments, as they often involve companies without significant revenue. For the same reason, it is recommended to ensure a good diversification of your investments, and in this context, fund models with many underlying portfolio companies/investments may be relevant to look at.
No, you probably can't say that. All venture investments must be seen as risky. The return in Nordic Bloom's funds has typically been around 18-20% p.a. and is thus a lot higher than, for example, listed shares, which have given around 10% p.a. in average annual return over the past 10-15 years. but conversely, these are not extremely high ROI, and especially not when you take illiquidity into account. This is because Nordic Bloom makes an extreme selection of investments, which provides risk diversification, while at the same time investing in enough companies that the chance of making a profit is relatively high. So you have a little more risk, but also the chance of a little more return. You could almost call Nordic Bloom a kind of "1st class venture ETF". In other words, investing in venture, but with a model that ensures greater security. For example, if it were a venture investment in a standalone company (like the ones you see on TV in "The Lion's Den"), you could expect a return of several hundred per cent on your investment, but conversely also accept that the majority of such investments will result in losses.
There are many different types of funds that can be utilised. For example, pension funds, endowment funds, VSO funds, free funds, company funds or VSO funds.
No, payments are made successively as investments are made in the underlying fund. This typically takes place over the first 3-4 years with roughly equal "instalments" of the amount you have subscribed for. If you subscribe for DKK 1 million, you will typically only have to pay in around DKK 250,000-350,000 annually until the full amount subscribed has been paid in.
No, payments to investors are expected to start 1-2 years after the end of the investment period (which is typically 3-4 years). In other words, this means that as the funds sell their underlying companies or parts of them, the proceeds will be paid back to the investors. The initial deposit is typically repaid after 6-8 years. The rest will be returns
The starting point is that you can sell your shares, provided the manager approves a new investor, but also that they are not liquid. Thus, you cannot expect to be able to sell your shares prematurely, and in most cases at a discount to the net asset value due to illiquidity.
In this type of fund with many underlying investments, this is the only way to avoid very high audit costs for each individual portfolio company and at the same time avoid the risk of so-called "principal taxation" of dividends. At the same time, US taxation is avoided in the Danish limited liability company, which according to the Danish Capital Gains Tax Act is "tax-free", i.e. taxed by the individual investor; be it an investor investing personally taxed funds, VSO funds, pension funds or investing via their own company.
No, they are in Nykredit, see below under depository.
Actively managed funds like these with specific selection of specific company investments take time, manpower and cost money as several hundred are often screened to select just one. However, the majority of the costs are variable and linked to performance, and there is always a minimum return to the investor before the manager receives a performance fee. Fixed annual fees are typically between 1.25%-2.00%, which is comparable to investment funds that manage listed shares!
The depositary requirement is statutory. It expresses the desire to separate the safekeeping of the assets and the management function, and also to keep the investors' assets separate from those of the manager. The depositary's tasks can be divided into 3 categories: 1) Monitoring the alternative investment fund's cash flow, 2) Custody of the fund's assets, and 3) Supervisory function. The depositary may delegate the safekeeping function to a third party provided that a number of requirements are met. However, in the event of delegation, the depositary is generally still responsible for this.
These are so-called §19 companies "Investment companies", which is why they are tax-transparent despite being organised as limited liability companies. The individual investor is thus the tax object, not the limited liability company. The A/S itself is subject to stock taxation, which means that any increase in value in a calendar year will be taxed the following year (by the individual investor).
Networking, networking, networking and a little history. The team behind Nordic Bloom has been involved in the provision and management of alternative investments for 20 years, previously managing more than USD 1 billion in such investments. This history has provided connections globally, some of which have led to collaborations with funds seeking a marketing platform in the EU/North.
We currently have more than 100 investors in our Danish funds, mainly wealthy private and family office investors. In the US funds, the number varies, but they typically consist of larger investors and a significant proportion of institutional investors.
We have so-called kommitments (drawings) for our funds of approximately DKK 400 million.
In numbers, we are not "heavy". However, we are in specific experience with these types of investments as well as screening, tendering and managing them.
English 
Danish