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Funding of Finnish startups reaches new heights

Aivan is a provider of open-source data technologies on all major cloud platforms and raised 200 million euros in funding in 2022.


The amount of capital raised by Finnish startups reached a new record of 1.8 billion euros in 2022.

According to the Finnish Venture Capital Association (FVCA), the amount invested in local startups in 2022 represents a jump of almost half a billion euros from the previous year’s total.

“The amount of funding raised by Finnish startups has increased tenfold in the last ten years,” said Anne Horttanainen, FVCA’s managing director. “We have seen especially great leaps in the last four years, and the long-term development has also been positive.”

Among the most significant funding news in 2022 was the half a billion euros raised by RELEX Solutions, a Helsinki-headquartered provider of unified retail planning solutions. Sizeable rounds were also completed by open-source cloud data platform Aiven (200 million euros), quantum computer developer IQM (128 million euros) and satellite technology company ICEYE (120 million euros).

RELEX Solutions is now valued at five billion euros.


Of the total invested in Finnish startups, almost 60 per cent came from venture capital and growth investors. Altogether, some 280 million euros of VC and growth funding came from domestic investors and 753 million euros from abroad.

“The largest funding rounds are often led by foreign investors. Financing of tens or hundreds of millions cannot be done by Finnish efforts alone, and for our startups to compete with the global leaders, we also need to be able to attract international capital,” Horttanainen continued.

Flush with funds

2022 also saw Finnish VC funds enjoying a particularly successful year, with a record 402 million euros in capital raised. Both FOV Ventures and Innovestor Life Science launched their first funds, and Inventure, Butterfly Ventures and Wave Ventures set up new funds.

FVCA’s Horttanainen underlines the importance of foreign capital to Finnish company growth.


“The development is positive – the sizes of funds have grown and new funds have been established. While we already have a few larger VC funds, we are still missing the funds with hundreds of millions under management, which often lead later-stage investment rounds,” Horttanainen said.

While the past four years may have seen the Finnish startup and venture capital ecosystem grow in leaps and bounds, Finnish VC firms point to dark clouds looming on the horizon. Indeed, while there are still good investment opportunities available, discussion in Finland has focused on the declining number of new startups being founded.

“The development of the venture capital industry and the entire ecosystem is the result of the long-term work of many players. To ensure that this good development does not suffer a setback, co-operation to promote growth and entrepreneurship must continue,” Horttanainen said.

The past four years especially have seen the Finnish startup and venture capital ecosystem grow in an unprecedented fashion.

By: James O’Sullivan