The venture capital scene in Sweden in 2025

Sweden is and have been one of the fastest-growing and most exciting investment hubs in Europe. With a surge of activity from both established investors and newcomers to the sector, we can expect to see future developments in Sweden tech scene.

Sweden remains a powerhouse in Europe’s tech landscape, albeit navigating a post-boom cooldown. The combined value of Swedish startups has doubled over the past five years, now about €239 billion, with 41 unicorns produced to date​. Key sectors driving growth include climate and “impact” tech, deep tech, and fintech.

Venture Capital Investment in Sweden: Key Trends and Leading Investors

Swedish startups raised €4.7 billion in venture funding in 2023. Although this was lower than the record-setting years of 2021 and 2022, it was still enough to place Sweden as the fourth-largest recipient of VC funding in Europe.

Sweden also ranked second in Europe for impact investing and third for deep tech investment, reflecting strong investor interest in sectors such as energy, climate solutions, and frontier technology. The largest areas of venture funding in 2023 were energy and mobility, followed by fintech. Together, these accounted for more than half of all Swedish venture capital investments. Green technology in particular has seen significant growth, aligning with Sweden’s reputation as a sustainability leader.

Sweden has a well-developed VC ecosystem with a mix of private and public capital. Some of the most active venture capital firms include EQT Ventures, Northzone, and Creandum, all of which invest across early and growth-stage startups. Public institutions such as Saminvest and Vinnova provide additional backing to strengthen the funding landscape. More than 40% of early-stage funding rounds in Sweden involve local investors, ensuring that promising startups have access to capital at the seed and Series A stages.

Major funding rounds in Sweden over the past years

Despite a more cautious investment environment, Sweden saw several major funding rounds and new unicorns emerge in 2023. One of the biggest deals in climate tech was H2 Green Steel’s €1.5 billion funding round, which included both equity and debt financing. The company’s green steel plant is one of Europe’s largest climate-focused industrial projects.

Klarna was a major success story in the fintech sector. After facing a sharp valuation drop in 2022, the company returned to profitability in 2023 and signaled plans for a future IPO, demonstrating resilience in a challenging market. Other fintech startups also saw success, including Minna Technologies, which crossed the $1 billion valuation mark following its Series C round.In climate tech, Absorb became one of the few greentech unicorns, reinforcing Sweden’s position as a leader in sustainable innovation. Meanwhile, a new wave of entrepreneurs is emerging from Sweden’s most successful startups.

The “Spotify Mafia” and “Klarna Mafia” are now spinning off founders into new ventures, ensuring a steady pipeline of experienced entrepreneurs launching high-growth companies in fintech, AI, and sustainability-focused industries.Sweden continues to be a key player in the European venture capital landscape, with strong investor interest in green technology, fintech, and deep tech. Despite market corrections, the country’s startup ecosystem remains one of the most attractive for founders and investors alike.
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