8. Investment opportunities

A dynamic innovation district is built on growth companies, entrepreneurs and knowledge communities that all need good access to capital. Without capital, the development of ideas, technologies and business concepts will stagnate.

Experiences from innovation districts in other countries show that investor communities are developing strong interest in this type of environments. Both seed and venture capital funds, private investors and corporate ventures like to establish themselves in close proximity to knowledge districts to forge bonds with the best entrepreneurs and the most promising growth companies. Here, they find innovations in incubators, accelerators, TTOs and various entrepreneurial ecosystems. When it comes to real estate, the development of buildings and premises for innovation actors creates exciting and solid environments that result in rising rental prices over time.

INCREASED ACCESS TO RISK CAPITAL

In our future vision for Oslo Science City, we have made room for a unique interaction between an ever growing number of research-intensive enterprises, strong expert communities at the university and dynamic start-up ecosystems. Arenas and meeting places are being established where investors are active and close to the knowledge communities. Some of the most attractive areas and premises are dedicated to start-up ecosystems and growth companies. In this way, we highlight the opportunities in the district, and investors get access to a potentially large and valuable deal-flow. We envisage a cluster of investment firms in the central area. More specialized players may find it more expedient to establish themselves in the centres that originate from the four gravitational fields in the district.

Norwegian investors will be strongly represented in Oslo Science City. Also, it is a clear ambition to attract competent seed and venture investors from the Nordic countries and the rest of Europe. They may cooperate extensively with Norwegian authorities with the objective of benefiting to a much larger extent from the European schemes for innovation support and early phase investments. Investors, startups and scale ups should also work closely with Norwegian banks, to ensure that Norway efficiently utilizes European schemes for risk loans to early-stage companies. When a knowledge pool reaches this size, close links should be established with relevant public policy agencies like Investinor, Innovation Norway, Nysnø and Argentum. They should be strongly represented in Oslo Science City. The investment teams of the research institutions will also contribute with competent capital for innovation and growth.

We now see a clear tendency for where larger private equity funds and corporate investors show interest in investing in venture cases around larger research communities. An growing share of the growth in large enterprises can be ascribed to their ability to obtain technologies and solutions that are developed outside the company. The larger enterprises must therefore cooperate closely with the research communities and innovators in the early-stage companies. Within Medtech, IT and Cleantech, this pattern is already clearly visible. Those who invest in larger enterprises – for example expansion funds and buy-out funds – must join this investment model. The easiest way is to be localized in Oslo Science City.

ATTRACTIVE FOR REAL ESTATE INVESTORS

In real estate, we also see growing interest for investment in knowledge buildings and properties utilized for innovation districts and industry clusters. Such properties attract tenants with a high ability to pay, especially when the properties have a central location in major cities. The buildings in Oslo Science City are prominent examples for such objects. In recent years, we have seen that large Nordic and international real estate players have increased their exposure to such buildings and associated infrastructure. Real estate players such as Technopolis, SBB Norden and Balder are good examples for this type of investor. Siva Eiendom has played a key role in the development of such infrastructure in Norway, including the establishment of Oslo Cancer Cluster.

In the near future, we are sure that Oslo Science City will have a rich flora of property developers, property managers and investors. Both national, municipal and private actors will contribute to a profitable and liquid market for property transactions.