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Diving into the Nordic and Baltic 2020 Venture Capital Landscape
1. Nordic and Baltic Venture
Capital Landscape
From the eyes of an
international investor
2020
2. Eric Martineau-
Fortin
Managing Partner
Mitchell Gorodokin
Principal (Paris)
“The macro-economic conditions of the
Nordic and Baltic regions have always
attracted top talent and fostered
innovation. We are excited to see that
the rest of the international community
is getting more involved in Northern
European startups that are ready to
scale to the rest of the world.”
“Having relocated from the New York
office to Paris, I saw the added
emphasis that international investors
have placed on Western Europe over
the last couple of years. I see the same
excitement and activity brewing in the
Northern European ecosystem, and
we’re very excited to be involved.”
“In this first edition of our report, we aim to share our passion
and enthusiasm for the Nordic and Baltic venture capital ecosystems.
We at White Star Capital have been investing in the Nordics,
leading rounds in promising companies such as Unacast in
Norway and Safello in Sweden. We’ve seen incredible growth
in the region, and are excited that the high-end talent from the
region is getting the institutional support it needs to create global
leaders.
The Nordics and Baltics have already fostered the development of
several unicorns and high-profile exits. We are now seeing the
executives of those companies launch their next projects. We at
White Star Capital are excited to support these amazing teams on
their journey to becoming the next global champions.”
Matthieu Lattes
General Partner
(Paris)
“There are a number of aspects about the Northern European
ecosystem that has allowed it to become one of the world’s
fastest growing regions.
Northern Europe has long been known for its world-leading
education and research institutions. The region also has one
of the most forward-thinking digital strategies and internet
penetration rates in the world. There is a long-standing tradition
of openness to globalization that resonates strongly with White
Star’s core investment thesis. The smaller populations in the region
force founders to think globally from day 1, and we are looking
forward to supporting the next generation of international leaders
coming out of the region.
In this report, we explore the benefits of the Nordic Model, the
growth drivers of the ecosystem, and the opportunities available for
international investors."
Nicholas Stocks
General Partner (London)
“Northern Europe has established
itself as a leading innovation hub with
its commitment to digitization and
globalization. We are excited to see
other foreign investors entering the
region to help foster talent and
innovation as they grow to become
world leaders.”
Pauline Studer
Associate (Paris)
3. SECTION 1 Nordic and Baltic Venture Capital: An Overview
SECTION 2 Ecosystem: Brimming With the Right
Characteristics
SECTION 3 Talent: Unmet Demand for High-Skilled Labor
SECTION 4 Government: The Nordic Model and Public
Initiatives
SECTION 5 Capital: Angels, Foreign/Domestic VCs, and
Corporate Venture Capital
SECTION 6 Looking Forward
PAGE 4-14
PAGE 15-18
PAGE 19-21
PAGE 22-26
PAGE 27-34
PAGE 35-37
3
5. The Nordic and Baltic Venture Capital Ecosystems
in the Spotlight!
5
(1) https://blog.dealroom.co/wp-content/uploads/2018/09/BBQ-vLong.pdf
(2) World Economic Forum Global Competitiveness Report 2018
(3) https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2018-Full-Report.pdf
(4) https://www.haendlerbund.de/de/downloads/ecommerce-europe/european-ecommerce-report-2018.pdf
Nordic and Baltic Venture Capital: An Overview
3rd
Nordic* rank In Europe for
number of unicorns1
4th
largest source of venture
capital in Europe (behind UK,
Germany, and France)1
207%
3Y increase in VC funding
(2017-2019)
2413
3Y total number of VC deals
(2017-2019)
Top 12
Finland, Norway, Sweden
and Denmark top 12 in world
for competitiveness and
Macro-environment2
Top 15
All Nordic* countries top 15
in the world for innovation2
Top 20
Estonia, Latvia, Lithuania
ranked top 20 out of 186
countries in Ease of Doing
Business.3
1st
Northern Europe** has
highest internet penetration
rate in Europe.4
Note**: Northern Europe includes Denmark, Finland,
Norway, Sweden, Iceland, Estonia, Latvia, Lithuania
Note*: Nordics include Denmark, Finland, Norway, Sweden, Iceland
Source: CB Insights
6. $0.0bn
$0.5bn
$1.0bn
$1.5bn
$2.0bn
$2.5bn
2017
2018
2019
Record VC funding in 2018 and 2019 more evenly
distributed than in the past
Nordic and Baltic Venture Capital: An Overview
6
Record funding in 2019 includes larger, follow-on rounds from 2017 and
2018
Deal Volume and Value
Deal Volume
Source: CB Insights. Pitchbook
(1) Nordic and Baltic countries included: Sweden, Denmark, Finland, Norway, Estonia, Lithuania, Iceland,
Latvia
• The Nordic region is emerging as a top-tier tech hub, with 2019 amassing a
record funding for a second consecutive year
• 2017’s record deal volume included > 75% seed deals, which are enjoying
bigger Series A and B follow-on rounds in 2018 (40%) and 2019 (45%)
• Sweden continues to dominate Nordic market share, as it has for the last
decade, but growth has shifted to Denmark and Finland
• Swedish deal volume rivals that of France and Germany, but deal value still lags
far behind
$0.3bn $0.3bn $0.6bn $0.5bn $0.9bn $0.9bn
$1.9bn
$1.2bn $1.5bn
$2.5bn
$4.6bn
38 78 100
162
230
291
416
685
796
713
904
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Deal Value Deal Volume
7. 52%
(26)%
36%
+20.7%
7%
+3%
4%
2%
1%
+0%
1%
+0%
58%
(13)%
31%
+10%
11%
+11%
0%
(4)%
0%
(4)%
0%
+0%
The Nordic VC ecosystem is maturing past Seed
Nordic and Baltic Venture Capital: An Overview
Source: CBInsights
7
Seed/Angel
share of deals
Series A
share of deals
Series B
share of deals
Series C
share of deals
Series D
share of deals
Series E
share of deals
54%
+26%
18%
(25)%
18%
+4%
9%
(5)%
0%
+0%
0%
+0%
59%
(22)%
21%
+7%
11%
+7%
9%
+9%
0%
+0%
0%
+0%
86%
+13%
14%
(4)%
0%
(9)%
0%
+0%
0%
+0%
0%
+0%
60%
(9)%
21%
(4)%
17%
+12%
2%
+0%
0%
+0%
0%
+0%
+[xx]%
Difference in
share of deals
from 16-18
Share of Deals by Stage Type (2018)
High-quality investment opportunities are driving activity towards growth
in Series A and B rounds
8. Nordic valuations spike to record highs on the backs
of megarounds from big winners
Nordic and Baltic Venture Capital: An Overview
Source: Pitchbook
8
Series A and B pre-money valuations have grown at 23% and 37%
CAGRs, respectively, since 2010
Seed
Series A
Series B
Evolution of Median Pre-Money Valuations in Nordics and Baltics
Average Pre-Money Valuations* (2010 – 2019)
Alongside Sweden, Denmark and Estonia have the fastest growing valuations in
the region
*
**
Notes: * Valuations for 2012 $13m Trustpilot and $33m iZettle Series B rounds not disclosed
** Includes $444m Series B valuation for Pleo and $230m Series B valuation for Chainalysis
Notes: * Valuations represent the 10-year average of median pre-money valuations for the given period
** Does not include $100m HMD Series A round at $900m pre-money valuation
$4m $4m $4m $4m $4m $4m $4m $4m
$21m $24m
$5m**
$23m
$4m $15m
$1m
$12m
$41m
$102m
$26m
$48m
$6m
$50m
$7m
$18m
$0m
$50m
$100m
$150m
$200m
$250m
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Seed Series A Series B
9. Round sizes in Denmark are outpacing the rest of
the Nordics
Nordic and Baltic Venture Capital: An Overview
Source: CB Insights
Median deal sizes in the rest of the region remain lower than Anglo-
saxon markets
9
2017-2019 Median Deal Size of Early-Stage Rounds
$1m
$10m
$35m
$1m
$5m
$12m
$2m
$5m
N/A
$1m
$2m
$15m
$2m
$7m
N/A
Note: Iceland, Lithuania, and Latvia not included due to insufficient data
$2m
$8m
$14m
$2m
$7m
$11m
$[xx]m 2019 Median Round Size
$0m $5m $10m $15m $20m
Series B
Series A
Seed
$0m $5m $10m $15m $20m $25m $30m $35m $40m
Series B
Series A
Seed
$0m $2m $4m $6m $8m $10m $12m $14m $16m
Series B
Series A
Seed
$0m $1m $2m $3m $4m $5m $6m $7m $8m
Series B
Series A
Seed
$0m $5m $10m $15m $20m
Series B
Series A
Seed
$0m $2m $4m $6m $8m $10m $12m
Series B
Series A
Seed
$0m $2m $4m $6m $8m $10m $12m $14m $16m
Series B
Series A
Seed
10. Northern Europe has created some of Europe’s
most valuable companies, with more in the pipeline
Nordic and Baltic Venture Capital: An Overview
Source: CB Insights
With largest Nordic deals exiting now, a generation of early employees
are raising A and B rounds for their next projects
Biggest Rounds by Country (2015-2019)
$175m
Series B (2018)
$174m
Seed (2018)
$100m
Series C (2018)
$130m
Series C (2019)
$1bn
CD (2016)
$460m
Growth (2019)
$500m
CD (2018)
$159m
Series C (2019)
Note: Latest round only shown for each company
$600m
Corp. Rd.(2019)
$90m
Series C (2018)
$55m
Series E (2019)
$56m
Series C (2019)
$250m
Series E (2018)
$41m
Series C (2018)
$36m
Series B (2016)
$200m
Growth (2019)
$25m
Series C (2016)
$25m
Series A (2017)
$25m
Series A (2019)
$21m
Series A (2018)
$18m
Series B (2018)
$30m
Series C
(2015)
$16m
Series C (2019)
$8m
Seed (2018)
$292m
Growth (2019)
$60m
Series C (2018)
$40m
Series A (2019)
$60m
Series B (2018)
$59m
Series D (2018)
$7m
Series B (2016)
$11m
Series B (2019)
$6m
Series A (2018)
$500m
$100m
$50m
$20m
12. Nordic countries are also home of potential unicorns
The Nordics are now home to 17 unicorns1…
$8bn+
Capital Raised by
Nordic Unicorns
5
Number of New
Nordic Unicorns
since 2018
35%
of Nordic Unicorns
in Gaming
12
Source: Dealroom
(1) Unicorn defined as a venture-backed company with a valuation of US$1bn+.
Nordic and Baltic Venture Capital: An Overview
That are worth a combined $90B, 3rd most for any region in Europe
$5.5bn
$1.5bn
Finland 1
Denmark 4
Estonia 4
$8.0bn
$3.5bn
$2.0bn
Sweden 8
$6.2bn
$1.0bn
$30bn
$1.3bn
$1.1bn
$6.0bn
$2.2bn
$12bn
$3.3bn
$1.3bn
$8.5bn
$1.1bn
13. The Nordic region has the highest concentration of
VC invested per capita in Europe
13
Source: dealroom.com
0.3m
Nordic and Baltic Venture Capital: An Overview
10m
6m
5m
6m
82m
67m
65m 17m
1.3m
2m
2.8m
5m
47m
61m
Nordic
Countries
Rest of Europe
$5
$21
$36
$37
$42
$56
$58
$60
$60
$67
$78
$88
$114
$122
$169
Latvia
Lithuania
Spain
Netherlands
Belgium
Norway
Portugal
France
Germany
Iceland
Denmark
Finland
United Kingdom
Sweden
Estonia
VC Invested per Capita (2018)
Estonia, however, is the runaway leader in Europe
Baltic
Countries
16. Ecosystem
16
The White Star Capital model for a Venture
Capital ecosystem
Market
Naturally occurring,
uncontrollable aspects of the
landscape
Key Characteristics
• Technological adoption
• Digital penetration
• Size and growth
• Tailwinds or
headwinds
Talent
The abundance of strong
founders and employees
and the underlying initiatives
supporting them
Key Characteristics
• Education
• Major
corporates
Government
Controllable,
human-led aspects
of the landscape
Key Characteristics
• Tax incentives
• Government led
incubators and hubs
• Regulation
Capital
Financing
available in the
market
Key Characteristics
• Angel investors
• Presence of funds across
sectors and stages
• Access to international
funding
At White Star Capital, we believe there are 4 key constituents to the VC
ecosystem
17. Health
Education and Skills
Institutions
Infrastructure
Tech Readiness
Macroeconomic
Context
Business Dynamism
Innovation Capacity
Product of Market
Efficiency
Labor Market
Functioning
Financial Market
Development
Market Size
Denmark
Estonia
Finland
Iceland
Latvia
Lithuania
Norway
Sweden
The region is highly skilled, digitalized, and supported,
but lags in market size and buyer sophistication
17
Source: World Economic Forum Global Competitiveness Report 2018: http://www3.weforum.org/docs/GCR2017-
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf
Ecosystem
Market
• Nordic market lags
in size
• Sweden ranked:
40th/137
• Norway,
Denmark ranked
50th, 56th
• ”Nordic Model”
places emphasis on
global, open and
efficient markets
• Denmark ranked
3rd/137 in labor
market function
Talent
• Highly skilled and
educated workforce
• Denmark and
Iceland education
and skills ranked
1st and 2nd out of
137
• However, skills are
highly specialized in
ICT, region has a
severe talent
shortage of general
software
developers
Government
• Sweden, Norway,
Estonia tied for 1st
for Macro
Environment
• Finland, Norway,
Sweden, Denmark
rank top 10 in
Institutional Support
(Social Capital,
Public Sector Perf.)
• Finland, Norway,
Sweden, Denmark,
Iceland rank top 11
in Tech. Readiness
Capital
• Denmark, Finland,
Norway, Sweden
top 10 business
dynamism
(readiness to launch
a business)
• However,
innovation capacity
(buyer
sophistication,
availability of
engineers) lags
behind
18. Sweden, Norway, Finland
Top 10
In financial market
development1
Advanced financial market
English
Fluently spoken by
69%
of Nordics**2
Great accessibility
Top 15
In the world for their Human
Development Index3
High spending power*
150%
Growth in proportion of
foreign-born Nordic
population in last 20 years5
Growing foreign-born
population
The 8 Northern European
countries are
Top 17
most economically free
country in Europe6
Openness to innovation
Northern European demographics are brimming
with the right characteristics…
18
(1) World Economic Forum Global Competitiveness Report 2018
(2) https://www.ef.se/epi/ , https://www.europelanguagejobs.com/blog/english-who-speaks-it-best.php
(3) https://en.wikipedia.org/wiki/List_of_countries_by_Human_Development_Index
(4) https://www.export.gov/apex/article2?id=Sweden-Market-Overview
(5) https://norden.diva-portal.org/smash/get/diva2:1180256/FULLTEXT01.pdf
(6) https://www.heritage.org/index/ranking
Ecosystem: Market
Note*: The HDI is a composite statistic included in a United
Nations Human Development Report ranking countries based on
life expectancy, education, and income per capita.
12th
Nordics** comprise 12th largest
combined market in the world4
Regional strength
Note**: Nordics defined as Sweden, Norway, Finland,
Denmark, Iceland
20. Nordic universities produce internationally
successful talent
Ecosystem: Talent
Source:
(1) https://www.ef.se/epi/ (2) https://www.oecd.org/pisa/pisa-2015-results-in-focus-FR.pdf
20
Sweden, Finland, Denmark getting very good results relative to their
population size and GDP
Selected Nordic Unicorn Founders who studied at the most
prestigious Nordic universities
Daniel Ek
Co-founder
Kim Dikert
Co-founder
Fredrik Hjelm
Founder
Sebastian
Siemiatkowski
Co-founder
Jacob de Geer
Founder & CEO
Miki Kuusi
Co-founder
Sweden is the
non-English
speaking
country that
speaks English
best1
Finnish
education
system is
the 5th most
successful in
the world2
Free tuition
fees in most of
Nordic countries
with a large
government
funding
Most Scandinavian Universities maintain strong industry
connections :
21. Demand for high-skilled talent in Nordic countries
leads to labor shortage
21
Source:
(1) Hays Global Skills Index 2016
Ecosystem: Talent
Educational reforms and international talent are needed to lift share of
population capable of performing high-skill tasks
(2) 2018 Global Talent Competitiveness Index
(3) https://www.lifeinnorway.net/norways-workforce-shortage-increases/
(4) http://skillspanorama.cedefop.europa.eu/en/analytical_highlights/skills-anticipation-finland
Highest job
polarization in
Europe:
1st in share of
both high- and
low- skill jobs
Norwegian
companies report
labor shortage of
60,000 in 2018
Over 1/3 of
healthcare
companies
reported unmet
labor needs
Increase of multi-national
ICT firms, tech start-ups,
and R&D institutions
created very high
demand for skilled
labor.
Undersupply of
graduates and demand
for experienced recruits
creates ICT, Healthcare,
and Education talent
shortages
Half of total jobs will
need high qualification
level by 2030.
Ageing population,
gradual decrease in
the labor force.
Mismatch of 15K
software developers
by 2020.
7
4
6
5
x
Global Talent Competitive Index
Ranking for Most Competitive
Talent Pools
2%
4%
2% 2%
11%
8% 8%
7%
4%
EU28 Finland Sweden Denmark Norway
Science educated people unemployment General unemployment
Unemployment for science and engineering
educated and for total population
23. Government: The Nordic Model and Public Initiatives
23
The Nordic Model combines economic efficiency with social
cohesion
Characteristics of the Nordic Model
Comprehensive
welfare state with
emphasis on
publicly provided
social service
High public/private
spending on human
capital and R&D
Set of strong labor
market institutions
including unions
and wage
coordination
Mutually
supportive
interaction of risk
sharing and
globalization
• Globalization provides
opportunity to increase
returns to factors of
production.
• Nordic model targets growth-enhancing
technical change, free trade, and open
markets.
• Globalization allows higher incomes with
winners and losers, risk sharing provides
protection for losers.
• Welfare compensation mechanisms
provide social protection to compensate
entrepreneurial risk-taking
• High level of trust, absence of corruption
help maintain public backing and viability of
large public sector.
• The Nordic Model is vulnerable to changes in employment
and demographics.
• Ageing population base increases the size of the
passive population (retirees), while decreasing
the size of active population (workers).
• Combination of ageing populations and an ambitious
welfare state can strain public finances, particularly
if globalization increases mobility of jobs and
labor.
• Openness to market
liberalization helped
transformation towards
knowledge-intensive
economy.
• Working age
population of Finland
will decline from
66.5% to 57.5% by
2040.
Benefits of the Nordic Model
Challenges of the Nordic Model
• Share of those over
65 will increase
from 16% to 26%
of population.
Source: https://economics.mit.edu/files/5726
24. 24
Government: The Nordic Model and Public Initiatives
Northern Europe has placed a high emphasis on
public initiatives and institutions
Sweden’s innovation agency.
Annual budget of €310m.
15302 innovative projects were
funded since its creation in 2001.1
It funds research and competence
development at Sweden’s university
colleges integrating private business
actors.
It has now invested around €900m in
over 2500 projects2
Source:
(1) Vinnova
(2) http://www.kks.se/om-oss/in-english/
(3) http://beta.business-sweden.se/grow-globally/our-offer/
(4) https://almi.se/en/almi-invest/about-almi-invest/
(5) https://vf.dk/en/objectives-and-strategy/
(6) InnovationfundofDenmark
Publicly owned and managed venture
capital fund which offer grants to
innovative projects.
3044 projects funded since 20146
Developed a start-up grant program
which ensure an income for start-up
founders to incite them to launch their
project and to take more risks8
Estonia offers e-Residency which
enables worldwide digital
entrepreneurs to start and manage
an EU-based company online11
Business Sweden help Swedish
companies to develop internationally
Operating in 50+ countries, 700
companies are supported per year3
It is Sweden’s most active startup
investor. This public fund has funded
660 startups since 2009 and
manage about €300m4
(7)Business Finland
(8) https://tem.fi/en/start-up-grants
(9) InnovationNorway
(10) Research Council’s of Norway
(11) https://e-resident.gov.ee/
(12) https://www.nmi.is/en/about-innovation-center-iceland
Danish state’s investment fund.
Has invested €3.3b in more than
7,900 small and medium-sized
enterprises
since 19925
Finances business research and
development projects, and public
research at universities.
Annual budget of €500m7
Offers help to Entrepreneurs with
expertise and grants, from €5k to
€70k. They also back-up the
international development in more
than 30 countries9
The Research Council of Norway,
promotes research and innovation.
Has invested €10b in 33k projects
since 200410
Innovation Center Iceland assists
entrepreneurs operating as an
Incubator which offer support and
grants12
25. Government goal to have 10M e-Estonians by 2025, 10x country
population
Estonia, in particular, has become a leading digital
republic
2002
2001
2000
e-Governance
2007
2008
2014
1997
e-Tax
Estonia is the first country to offer e-Residency, a government-issued digital identity and status that provides
access to Estonia’s transparent digital business environment
Co-invests alongside Abu Dhabi’s sovereign wealth fund Mubadala and CDC International Capital
Invests exclusively in the 12 winners of the Global Innovation Competition (CMI). Check size ranges from
€2 to €20m
Digital ID
Allows the nation’s various public and private sector e-service information systems to link up and
function in harmony.
Public Safety
Invests in fast-growing innovative startups with high capital requirements (check size
between €10m and €30m)
The fund size increased to €1bn in 2017
Blockchain
e-Residency is a transnational digital identity program that can provide anyone,
anywhere with the opportunity to succeed as an entrepreneur. Like citizens and
residents of Estonia, e-residents receive a government-issued digital ID and full access
to Estonia’s public e-services.
e-Residency
Government: The Nordic Model and Public Initiatives
X-Road
98% of residents own an ID card, the key to accessing digital services.
40,000
People
150
Countries
6000
Companies
Granted e-Residency in Estonia Since the creation of program in
December 2014:
Looking forward: Estonia is building the most advanced e-society
in the world
The e-State is committed to moving basic government services into
full digital mode
Source: https://e-estonia.com/solutions/e-governance/
New Digital Nation
Industry 4.0
Healthcare 4.0
Cybersecurity Reporting 3.0
Intelligent
Transportation
Data Embassy
Cross-border
data
exchange
Digital
Transformation in
Education
Real-Time
Economy
26. The large discrepancy between corporate and personal
tax rates in the Nordics incentivizes entrepreneurship
Government: The Nordic Model and Public Initiatives
26
The Nordic’s relatively low corporate tax rates, combined with the
welfare state safety net, encourages risk-sharing
Source:
“Estonia’s e-governance provides you
smooth, hassle-free location independent
access to all public services. Interlinked
with the private sector service providers, it
minimizes the time spent talking to the
government. And time is everything in the
startup field.”
-Viljar Lubi Deputy Secretary General,
Economic Development, Ministry of
Economic Affairs and Communications for
Estonia
“Higher education is free in Western
Denmark. Without the burden of student
loan debt, entrepreneurs have the financial
freedom to pursue something interesting
and innovative, bootstrap their businesses,
and spend time in local incubators.”
- Mikkel Fledelius Jensen Managing
Director at Game Hub Denmark
“In Scandinavia, there is a ‘flexicurity’
system… that although your company
might fail, you will still have access to the
welfare state. Consequently, the downside
of becoming an entrepreneur is lower in
the region than in other parts of the world.
You don’t have to risk your entire future –
you will still have food on the table even if
you fail.”
0%
10%
20%
30%
40%
50%
60%
70%
Sweden Finland Norway Denmark USA UK France
Corporate vs. Highest Personal Income Tax Rates, 2019
Corporate Personal
- Svein Berg, Managing Director
of Nordic Innovation.
28. As the ecosystem matures and exits mount, the
angel community has grown
Capital: Angel Investors
Sources: Linkedin, Crunchbase, CB Insights, Pitchbook
28
Selected Angel Investors
Angel Investor Activity (% of total
deals)
Ali Omar
Med Group Oy (Co-founder)
Jonas Nordlander
Avito (Co-founder)
Niklas Eklund
Infogate (Co-founder)
Taavet Hinrikus
TransferWise (Co-founder)
David Helgason
Unity (Founder)
Sean Percival
Whereby (CMO)
Hampus Jakobsson
Brisk (Founder)
Net Jacobsson
Sparklabs Global Venture (Co-
founder)
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2014 2015 2016 2017 2018 H1 2019
Europe Nordics
29. 17
9
7 6 5 5 5 5 5
1
International investment is flowing into the Nordic
region
Capital: International Investors
Source: Pitchbook
29
International CVCs are increasing their investments in Nordic-based start-ups
$-
$100m
$200m
$300m
$400m
$500m
$600m
$700m
2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019
Seed Series A Series B Series C+
Seed
Spotify raised $526m in 2015
International VC investment volume in the Nordics
International VC deals in the Nordics
30. 6
4 4 4
3 3 3 3 3
11
6 6
4 4 4 4 4 4
International investment is flowing into the Nordic
region
Source: Pitchbook
30
Series A
Series B
Series C+
7
5
4 4 4
3 3 3
1
International VC investments in the Nordics
Capital: International Investors
31. Nordic-based CVC investments have more than
doubled in the last five years
31
Source:
Percentage of CVC deals with Nordic-based CVCs, by country
[xx]
%
% of total CVC deals over the last 5 years that involved Nordic based CVCs
5%
10%
15%
20%
25%
2014 2015 2016 2017 2018 H1 2019
Europe Nordics
Corporate investment as % of total investment ($)
88 83
32
26
10 5
0 0
50% 65% 69% 0%50%34% 0%0%
Number of CVC deals
Capital: Corporate Venture Capital
32. Selected Nordic-Based CVCs
Capital: Corporate Venture Capital
32
Maersk
H&M Nordea
Source: Pitchbook
Schibsted Novo Holdings
Lundbeck
Volvo Ericsson
Oslo, Norway
Number of Investments
69
Hellerup, Denmark
Portfolio companies :
368
Stockholm, Sweden
Portfolio companies :
11
Copenhagen, Denmark
Portfolio companies
31
Helsinki, Finland
Portfolio companies :
12
Copenhagen, Denmark
Portfolio companies :
15
Gothenberg, Sweden
Portfolio companies :
55
Stockholm, Sweden
Portfolio companies :
25
CVCs in Nordics are spread across a variety of
industries
33. 10
9
8 8
7
6
5 5
4
3
5 5
VC Funds of funds CVC
14 14 13
7 7 7 6 5 5 5
12
VC Funds of funds
25
22 20
16 15 13 13 13 11 10
14
10
VC CVC Funds of funds
74 72
49 46
39 33 30 28
10
2327
VC Inc / Acc CVC
Most Active Nordic VCs
Capital: Nordic VCs
Source: pitchbook
33
• Seed
• Series A
• Series B
• Series C+
35. Growth capital often comes from abroad –
typically in relation to international expansion
Looking Forward
35
Corporates and international investors are driving a lot of investment
at larger deal stages
Source: CBInsightsc
% of Seed Start-Ups That Raise
$15m+, $50m+ and $100m+
24%
35%
21%
13% 12%
10%
9%
3%
8%9%
20%
8%
2% 1% 2%
1% 1%
3%3%
13%
4%
1% 0% 1% 1% 1%
3%
USA China Europe Sweden Norway Denmark Finland Estonia Iceland
Raised >$15m+ Raised >$50m+ Raised >$100m+
% of Start-ups Funded by
International VCs, by Country
76%
60% 60% 60%
57% 56%
53%
42%
Note: International VCs defined as having HQ outside of the Nordics
