The Annual Meeting of the The New Business Venture Fund Kría (Kría) was held on Wednesday, 24 June, where the Fund’s Annual Report for 2025 was presented. The meeting was attended by representatives from government, the Fund’s partners, investors and other stakeholders from Iceland’s innovation ecosystem.
Logi Már Einarsson, Minister of Culture, Innovation and Higher Education, addressed the guests and spoke about the importance of innovation for value creation and the competitiveness of the Icelandic economy. He emphasised the important role of The New Business Venture Fund Kría in improving access to capital for startups and strengthening Iceland’s innovation ecosystem.
Svanhildur Nanna Vigfúsdóttir, Chair of the Fund, presented the Fund’s strategic work and long-term objectives aimed at strengthening the financing environment for startups. Hrönn Greipsdóttir, CEO of the Fund, reviewed the Fund’s activities during its first year of operation following the merger of the Innovation Fund Iceland and Kría – Startup and Innovation Fund.
It was noted that, according to statistics compiled by Framvís, new investments in startups have declined in both number and value in recent years, while at the same time the supply of investment opportunities has increased significantly. This imbalance between the supply of and demand for investment can be defined as a market failure.
Fund investments are an important part of the Fund’s operations and demand for these investments has been strong. One of the most significant changes introduced under the new framework is that the Fund is now also authorised to invest in international venture funds. This has expanded Kría’s ability to support innovation in Iceland by providing access to international capital, expertise and strong networks.
The Annual Report includes the Fund’s financial statements together with an overview of activities during the year, the investment portfolio, key events and major projects. The report notes that the direct annual savings from operating the two predecessor funds as one amount to ISK 60 million, in addition to efficiencies gained and the benefits of operating under a single entity.
The Fund’s portfolio is carried at acquisition cost or market value if lower, meaning returns are not recognised until assets are sold. Consequently, it is inevitable that the Fund operates at a loss unless gains from asset sales exceed operating costs and write-downs of investments. During the year, the Fund invested ISK 311 million and realised gains of ISK 55 million from the sale of assets.
The Fund’s portfolio consists of investments in venture funds amounting to ISK 2.829 billion and equity holdings in companies amounting to ISK 2.086 billion. Including loans, cash holdings and uncalled capital commitments, the Fund’s total assets amount to just over ISK 9 billion.
Logi Már Einarsson, Minister of Culture, Innovation and Higher Education:
“Innovation is about seeing opportunities where others see challenges. The Fund’s name, Kría, captures that spirit well. The Arctic tern is bold and resourceful; it protects what is its own, undertakes long journeys and adapts to changing circumstances when needed. The same applies to innovation. For ideas to become value, they need the right conditions to thrive. The New Business Venture Fund Kría plays an important role in creating those conditions by supporting those who dare to pursue new paths. If we succeed, Icelandic ingenuity, resourcefulness and the well-known Icelandic determination will continue to create new opportunities and value for society as a whole.”
Hrönn Greipsdóttir, CEO of the Fund:
“We are very pleased with the Fund’s first year of operations. At the beginning of the year, considerable emphasis was placed on defining strategy and establishing long-term objectives. In May, two investment managers joined the team, and from that point the Fund’s activities truly gathered momentum. The Frumsjóður 25 investment initiative was highly successful, Health Kría was launched, and the Fund made its first investment in a venture fund towards the end of the year, to name just a few milestones. We are excited about the future and ready to take on the opportunities and challenges that come Kría’s way.”
The New Business Venture Fund Kría plays an important role in Iceland’s innovation ecosystem by contributing to a stronger financing environment for startups and encouraging greater participation from private investors in building new sources of value creation.
The Fund was established through the merger of the Innovation Fund Iceland and Kría – Startup and Innovation Fund. The new combined fund aims to preserve the strengths and unique characteristics of its predecessors through two main investment categories: direct investments and fund investments.
The Fund’s portfolio currently consists of holdings in 67 companies and investments in five venture capital funds.
