“There are four main qualities I look for in each investment case” – Introducing Lars Peter Lindfors, Kvanted Venture Partner
This blog is part of a series introducing the Kvanted team, including its Venture Partners who support Kvanted’s investment team and portfolio companies in building solutions that shape the future of industrial innovation. You can get to know the entire team here.
Around fifteen years ago, the Finnish energy company Neste made an exciting announcement. The company, changing its name from Neste Oil to Neste, had announced a massive shift in its strategy a few years earlier. It would focus on renewable and circular solutions, continuing creating renewable solutions for the transportation sector and the polymer and chemical industry. Neste spearheaded the global shift that energy companies have since taken towards more sustainable energy solutions.
Behind this change of Neste’s direction were, among other people, Lars Peter Lindfors. Lars Peter Lindfors, Neste’s previous EVP of Innovation (2019-2023) and SVP of Technology and Strategy (2009-2019), played a significant role in implementing Neste's strategic direction. Lars Peter, holding a Doctorate in Technology from the Laboratory of Industrial Chemistry, Åbo Akademi University and an MBA from the Henley Management College, was uniquely suited to participate in leading the development and implementation of the new company strategy. A part of this strategy included significant growth in innovation, technology and R&D investments. The development of the renewable business was made possible because of the proprietary technology that had been developed within Neste, giving the company a leading frontrunner position in the field.
The ambitious change in strategy worked, and after ten years, Neste has cemented its place as the leading renewable energy company on the global stage. Now Lars Peter works as the Senior Advisor for Neste, focusing on large strategic topics that involve in particular innovation and technology. Among several commissions of trust, he is also the Chairman of the Board of the Fortum and Neste Foundation.
Moreover, he has taken the role of Kvanted’s Venture Partner. As a Venture Partner, Lars Peter supports the Kvanted team in assessing potential investments, but more importantly, helps the existing portfolio navigate the ever-more-complex energy sector. Whether it's a strategic pivot like Neste's or tackling operational challenges such as recruiting, Lars Peter is the helping hand Kvanted’s portfolio companies can turn to in times of need.
In this interview, Lars Peter shares his insights into the challenges and opportunities within the startup ecosystem, particularly in the context of the green transition. Additionally, he outlines the four things every industrial technology startup should be able to showcase to potential investors.
Can you tell us a bit about your role as Kvanted’s Venture Partner?
Lars Peter: As a Venture Partner I’m there to help the Kvanted team and its portfolio, from larger strategic thinking to smaller tasks, such as recruiting and leadership. Naturally, after 34 years of experience in the industrial sector, including 23 years in senior executive positions at leading multinational corporations, my perspective lies in the intersection of corporates and startups – in other words, figuring out how the Kvanted portfolio companies can most benefit from working with larger companies and vice versa.
You have an active role in assessing potential investments. What qualities do you look for in a startup?
Lars Peter: There are four main qualities I look for in each case, on top of a myriad of others.
The newness. I look for something truly unique or new. Often, we see similar solutions in slightly different packages. Founders who impress me have found a completely new way to address a problem.
The relevancy. Not every solution is equally important. I consider relevancy from the perspective of a large corporation. How critical is the solution to the business? What value does it bring?
The scalability. Is the solution scalable enough for a multinational corporation?
The team. With experience of leading between 500 - 1500 employees during more than 20 years, I emphasize the importance of a strong founding and operational team, having all the competencies in place that are needed and showing excellent co-operational team spirit. World-class teams build world-class solutions.
What sort of qualities should a startup have to secure corporations as clients?
Lars Peter: Even great solutions often struggle with scalability and cost-efficiency. The scale of the solutions in large corporations are enormous, so any startup should plan a realistic path to scale up to a commercially interesting size. It's a great idea to outline this path from the very beginning.
Additionally, startups often have great technical ideas but face growth challenges, particularly in sales and marketing. Therefore, it's crucial to include a marketing and sales person in the team from the start. This again highlights the importance of a well-rounded team: your team needs complementary skills to both build and sell the solution.
What sort of solutions are large corporations and the energy industry now looking for?
Lars Peter: There is currently an energy conundrum. Every corporation is looking to decarbonize their operations, but there is also a soaring demand for energy. On top of that, companies need to consider costs and profitability. Startups that can offer both scalable and cost-effective sustainable solutions are in a great position for potential investment.
Overall, the green transition is just beginning, presenting numerous opportunities and new energy sources such as green hydrogen, wind, and solar, as well as hydrocarbons based on these sources to be used in the energy and the chemical sectors in particular. I'm also excited about trends like the circular economy, which focuses on sustainability and resource efficiency – as is the rest of Kvanted’s team.