Sweden's Most Active Angel Network Launches Propel Capital VII to Back the Next Generation of Startups

The network, closely connected to startup accelerator Sting, is placing a strategic focus on tech-driven solutions that address major societal needs, including health and climate.

With more than 210 startup investments and 47 successful exits since its inception in 2014, Propel Capital has become a cornerstone of Sweden's early-stage ecosystem. Notable alumni include Qasa, Sellpy, and Reorbit. Despite only making initial investments at the pre-seed stage and refraining from follow-on investments, three completed Propel Capital funds have yielded positive returns of 1.6–1.7x.

The new fund launches with SEK 27 million in committed capital, including matched funding from Saminvest, the state-backed investment company. In a market where investor selectivity is high, Propel Capital’s link to Sting’s rigorous selection process — only 6% of applicants are accepted — means the fund offers a unique pipeline of vetted startups.

"With Propel Capital, we offer something more than just early capital. Our startups also gain access to a dedicated network of investors who roll up their sleeves and get involved. It’s this combination that makes the model work," said Karin Ruiz, CEO of Sting.

Each fund is also a collaboration between a group of active angel investors, many of whom are returning participants from earlier Propel funds. Approximately 45 investors are participating in the seventh fund.

"Propel Capital gives investors a front-row seat to Sweden's emerging tech stars. It's a rare opportunity to get in early, with startups that have already been vetted by Sting’s rigorous process," said Emanuel Andersson, CEO of Sting Holding and head of Propel Capital’s investment operations.

Propel Capital's model goes beyond investment. Angels become part of an active club, sharing experiences, co-investing, and supporting founders hands-on. In fact, in 40% of portfolio companies, investors also make direct investments on top of the fund's initial stake.

"The chance to support promising startups from day one — and be part of a network where people actively build companies together — is what drew me to Propel," said Louise Richnau, investor in Propel Capital V, VI, and VII.

With a total of over SEK 130 million raised across all seven funds, Propel Capital has become the most active angel initiative of its kind in Sweden. Its impact has sparked similar models in at least six other regions. The current portfolio across Propel Capital IV to VII manages SEK 110 million, and together with the co-investment program run by Saminvest, the total capital pool reaches SEK 190 million.

"We’ve demonstrated that this model is scalable, resilient, and generates real results. It's built on strong selection and engaged support, and it works—even in tough times," Andersson added.

Entrepreneurs interested in Propel Capital funding must apply and be accepted into Sting’s accelerator or incubator programs.

Read the press release here