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Seeking any opportunities for growth means that venture capital organisation continue to raid the Swedish welfare sector

Thursday, 04 April 2013
As more questions continue to be asked rather than answered about how the private sector is making more money from miserable unemployed in Sweden, it turns out that high power companies are now extending their roots deep into the booming sector.

According to Swedish television investigation, companies coming into the job coaching industry in Sweden on grounds of helping unemployed get a job through improvements in their skills and helping them build connection with employers, has seen the sector so lucrative that venture capitalist firms are throwing themselves and stretching their roots deeper into the game.

Swedish television reports that the government's request that recruiting and training firms from the private sector should be drummed in to help reduce Swedish unemployment in way of training and equipping job seekers with skills needed by employers is so lucrative that foreign and Swedish venture capital companies with roots in tax havens are investing and expanding into the sector. Several private equity firms owned by companies based in tax havens are now big players in the recruitment and training business in Sweden financed by the taxpayers.

This come after our report yesterday which we wrote that Swedish television has reviewed some twenty companies that received the most money from the Swedish state's Employment Service during the years 2010 and 2012. It turned out that the money they received, as payments did not match their jobs for training and helping job seekers get the jobs that they were after.

Thus for how the sector is a growth zone, in 2010, the private equity firms collected a fifth of the money the Swedish employment services paid to the twenty largest companies for their services from job coaching, setting up pilots programs for youth skill development activities, as well as help integrate immigrants into the job market.

Two years later, that amount paid to venture capitalists for the same program has risen to over a third. Some of those organisations enjoying this bumper business are Danish venture capital firm Via Venture Partners - they got nearly Skr180 million from the Swedish Employment Service last year.

Other great players enjoying the spoils of the Swedish welfare payout are Ikea's venture capital company, Inter IKEA Investments, which also is a partner in the health care company Carema. Cerema is also part owned by Hermods via Luxembourg and Academedia Aquaeductus owned by Swedish private equity firm EQT through its holding company in tax haven Guernsey. Just the webs is mind bugling.

The question being asked - also by the Social Democrats party is whether it is great that venture capital organisations with roots in tax havens operate organisation that are funded by the tax payers. This is because the money earned it ferried way into tax havens.
by Scancomark.com Team

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