June 9, 2016

Finland’s startups receive most venture capital in Europe

Last year, Finnish growth companies received the most early-stage venture capital investments in the whole of Europe when comparing the value of the investments to the size of the national economy.
Last year, Finnish growth companies received the most early-stage venture capital investments in the whole of Europe when comparing the value of the investments to the size of the national economy.
istock.com/Jacob Ammentorp Lund

The amount of venture capital obtained by startups and growth companies in Finland, in relation to the GDP, is the highest in Europe, according to the statistics of the Finnish Venture Capital Association (FVCA).

According to the FCVA, last year, early-stage Finnish growth companies received the most early-stage venture capital investments in the whole of Europe when comparing the value of the investments to the size of the national economy. Also the returns on investments made in growth companies are increasing in the Nordic countries and Europe.

“In 2015, the most venture capital investments in Europe in proportion to the gross domestic product were made in Finland,” says operations manager Jonne Kuittinen from FVCA. “The volume of investments was up to more than twice the average investment volume in Europe. Also in the longer term, between 2010 and 2014, the venture capital invested in Finnish growth companies topped the list, just after Sweden.”

According to the performance index of the Nordic Venture Network (NVN), investments made in Nordic early-stage companies have performed well. Based on NVN’s statistics, investments made in startups and growth companies actually yielded higher returns than the stock market’s comparable indices.

The European Investment Fund (EIF), which is a fund investor in more than 300 venture capital funds, with approximately 4 000 target companies, reports similar statistics. The EIF’s investment manager Juho Aminoff mentioned at the Arctic15 growth company event that, in recent years, the venture capital investment class has performed well compared with other investment classes, also on the European scale. In addition Nordic returns fared better than the European average.

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