Finnish startups attract EUR 349 million

According to statistics collected by the Finnish Business Angels Network (FiBAN) and the Finnish Venture Capital Association (FVCA), foreign investors are increasingly attracted to the maturing startup ecosystem.

Foreign business angel and venture capital (VC) funding hit 208 million euros last year, an increase of 33 per cent from 2016. Altogether, the number of foreign investments has increased tenfold since 2010.

Managing director of FVCA, Pia Santavirta, also points out that the recent development goes both ways, with 30 per cent of Finnish VC funds’ investments allocated to companies outside of Finland – and the share is growing year by year.

“Many of the deals are made in syndicates of Finnish and international investors. It is obvious that the Finnish industry is getting increasingly better connected, and thus not only is financing being provided but also necessary knowledge is transferred through these spreading networks,” Santavirta states.

The figures also underline the maturation of the ecosystem, which has seen the amount of VC write-offs halved since 2012 to 20 per cent. Finnish VC firms also raised a record 169 million euros of new funds in 2017 to invest in startups and early-stage growth companies.

“Being known for our world-class gaming industry, research-based deep tech cases, and initiatives such as Europe’s biggest tech event Slush and the Nordics biggest startup hub Maria 01, the Finnish startup ecosystem can be seen as one of the most active in the Nordics and Europe, and the positive development should only continue in the upcoming years,” summarises Reidar Wasenius, managing director of FiBAN.