As the Scandinavian startup scene continues to blossom and become one of Europe's most dynamic hubs for innovation, The venture capital scene in Stockholm is getting bigger each day.
We have compiled a list of VC firms situated in the city. From the small ones to the giants.
Stockholm is becoming an increasingly attractive hub for venture capital investments, evidenced by the emergence of dozens of top-tier venture capital firms in the region. Swedish entrepreneurs now have access to a vast pool of experienced investors who can provide the resources needed to turn ideas into reality.
As venture capital activity continues to expand in Stockholm, startups on the rise are afforded a unique opportunity to make their big-step into the entrepreneurial world with financial support from local experts.
Venturing into the world of innovative startups and cutting-edge technology can be daunting for entrepreneurs, but luckily top venture capital firms in Stockholm are making strides to help promote innovation in Sweden. Through investing in new ideas, venture capitalists create an opportunity for unproven startups to become the business giants of tomorrow.
By enabling easier access to capital and resources, they are giving smaller companies the support they need to compete with larger businesses.
The most active venture capital firms in Stockholm include Northzone, EQT Ventures, Creandum and Inbox Capital. These firms lead investments in a range of industries including healthcare, fintech, software and technology.
Northzone is one of the largest VCs in Scandinavia, investing heavily in early-stage startups. Notable investments include music streaming service Spotify and online payment platform Klarna.
EQT Ventures focuses on late-stage ventures with high potential for growth, such as corporate travel booking tool TravelPerk and Nordregio, an environmental research institute.
Creandum backs digital technologies with global ambitions, having invested in the likes of iZettle (now PayPal) and financial services platform Tink.
Inbox Capital invests in early-stage startups across a variety of sectors and has funded several successful Swedish companies including online real estate agency Hemnet and private healthcare provider Kry.
These venture capital firms play an important role in the Stockholm startup scene, supporting entrepreneurs with their investments and providing them with guidance on their journey to success. With their help, Stockholm remains one of the most dynamic cities for startups in Europe.
The most common industries for venture capital investment in Stockholm are software and technology, fintech, healthcare and media.
Software and technology is one of the leading sectors for VC investments in the city due to its diverse range of startups. Companies such as streaming service Spotify have achieved huge success with funding from Northzone and EQT Ventures.
Fintech has also become a popular industry for venture capitalists in Stockholm, with companies like Klarna and Tink receiving significant investments from Creandum and Inbox Capital respectively.
Healthcare is another key sector which has seen a surge of interest from investors across Europe in recent years. Startups such as Kry have benefitted greatly from venture capital funding and are now making their mark on the industry.
The media sector is also becoming increasingly attractive to investors, especially in Stockholm, where companies like Acast and United Screens are using VC money to make their mark on the industry.
In summary, venture capital firms in Stockholm have invested heavily in a range of industries which offer high potential for growth and success. This has established the city as one of the most dynamic startup ecosystems in Europe.
The average deal size for venture capital firms in Stockholm varies depending on the type and stage of investment.
Early-stage investments typically range from €1 million to €5 million, while late-stage investments can reach up to €25 million or more. The amount invested also depends on the industry and potential of the startup.
Overall, venture capital deals in Stockholm tend to be slightly larger than those seen elsewhere in Europe due to the city’s strong startup ecosystem and its attractiveness to investors. This has enabled entrepreneurs with high potential startups to access large amounts of funding which can help them achieve their goals.
In conclusion, venture capital firms in Stockholm are playing an important role in the city's startup scene by providing both funding and guidance to entrepreneurs. They have invested heavily in a variety of industries, with average deal sizes ranging from €1 million for early-stage investments up to €25 million or more for late-stage investments. This has enabled startups to access the resources they need to succeed, making Stockholm one of the most dynamic cities for startups in Europe.
Startups in Stockholm typically go through two to three rounds of venture capital funding before reaching a more mature stage.
In the first round, known as seed funding, the startup's idea is validated and a small amount of money is raised to build the product. This usually makes up between €500k-€1 million.
The second round, known as series A funding, involves raising larger amounts of money (typically €3-5 million) in order to expand the team, market their product and help drive growth or expansion into new markets.
Companies may seek further funds at later stages such as Series B funding or C funding if they require additional investment for scaling their business or preparing it for an eventual exit.
Startups in Stockholm typically go through two to three rounds of venture capital funding before reaching a more mature stage. Each round involves raising different amounts of money which can help the company reach its goals and eventually achieve success.
The average time to exit for venture capital-backed startups in Stockholm is approximately seven years.
Typically, the first few years are spent validating the idea, building and launching a product, growing the business and receiving further rounds of funding. Once a company reaches a certain level of maturity, typically after four to five years, it can begin preparing for an exit either through an acquisition or IPO.
At this point, venture capitalists usually start to pressure founders into seeking an exit as they look to maximise their return on investment. On average, exits take another two to three years before being completed.
Overall, venture capital-backed startups in Stockholm have an average time to exit of seven years as they build their product, receive funding and prepare for an eventual exit. This provides a great opportunity for entrepreneurs to access the resources they need to make their dreams a reality.
Some of the most notable venture capital-backed exits in Stockholm in recent years include iZettle, Klarna, King Digital Entertainment and Truecaller.
iZettle is a payments provider which was acquired by PayPal for €1.1 billion in 2018. King Digital Entertainment, the makers of popular mobile game Candy Crush Saga, went public on the New York Stock Exchange in 2014 with an initial market capitalisation of over $7 billion.
Klarna is a financial technology company which had two major rounds of funding totalling $336 million before going public on Nasdaq Stockholm in 2021. Finally, Truecaller is an app that helps users identify unknown numbers and it was acquired by private equity firm Blackstone for $1 billion in 2020.
These examples demonstrate the potential for startups in Stockholm to achieve great success by accessing venture capital funding. They also show how venture capitalists can realise significant returns when their investments exit successfully.
Some of the most popular startup accelerator programs in Stockholm include STING, SUP46, Antler & Techstarts.
STING is a leading accelerator program for early-stage startups in Sweden which supports companies from idea to exit stage. SUP46 is a startup hub which provides mentorship, training and other resources to entrepreneurs. Slush is an international technology conference that helps bring new talent and investment into the city’s tech scene.
These accelerators provide valuable support to startups in Stockholm by connecting them with investors, mentors and industry experts that can help take their business to the next level. They also provide access to funding opportunities and networking events where entrepreneurs can make useful contacts and present their ideas to potential partners.