Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Nordics

Nordics

The country in Nordics is projected to reach a Total Capital Raised of US$3.34bn in the Venture Capital market market by 2024.
In this market, Early Stage leads with a projected market volume of US$1.59bn in 2024.
When compared globally, the United States is expected to generate the most Capital Raised, amounting to US$136,600.0m in 2024.
In the Nordics, the Venture Capital market is thriving, with a focus on sustainable tech startups attracting significant investment from both local and international investors.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

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Analyst Opinion

The Venture Capital market in Nordics has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Investors in the Nordics have shown a strong preference for investing in startups and early-stage companies, particularly in the technology sector. This is due to the region's reputation for innovation and the presence of a highly skilled workforce. Additionally, the Nordics have a strong track record of successful startups and a supportive ecosystem that encourages entrepreneurship.

Trends in the market: One of the key trends in the Venture Capital market in the Nordics is the increasing focus on sustainability and impact investing. Investors are increasingly looking for companies that not only have the potential for high financial returns but also make a positive social or environmental impact. This trend is driven by changing consumer preferences and increased awareness of sustainability issues. As a result, we are seeing a growing number of Venture Capital firms in the Nordics that specialize in impact investing and support startups with a strong sustainability focus. Another trend in the market is the rise of deep tech startups in the Nordics. Deep tech refers to companies that are built around scientific or technological breakthroughs and have the potential to disrupt traditional industries. The Nordics, with their strong tradition in engineering and technology, are well-positioned to foster the growth of deep tech startups. These companies often require significant capital investment in the early stages, making them attractive to Venture Capital firms.

Local special circumstances: The Nordics have a unique set of circumstances that contribute to the development of the Venture Capital market. One of these is the presence of a strong welfare state, which provides a safety net for entrepreneurs and reduces the risk associated with starting a business. This, in turn, encourages more individuals to take the leap into entrepreneurship and attracts Venture Capital investment. Additionally, the Nordics have a collaborative and supportive business culture, with a focus on teamwork and consensus-building. This culture fosters innovation and makes it easier for startups to access the resources and expertise they need to grow. Venture Capital firms in the Nordics often play an active role in supporting their portfolio companies, providing not just capital but also strategic guidance and networking opportunities.

Underlying macroeconomic factors: The strong performance of the Nordics' economies is another factor driving the growth of the Venture Capital market. The region has a stable political and economic environment, with low levels of corruption and a high degree of transparency. This makes it an attractive destination for both domestic and international investors. Additionally, the Nordics have a highly educated workforce and a strong tradition of research and development, which contributes to the creation of innovative startups. In conclusion, the Venture Capital market in the Nordics is experiencing significant growth due to customer preferences for investing in startups and early-stage companies, the rise of sustainability and impact investing, the emergence of deep tech startups, local special circumstances such as a supportive business culture and a strong welfare state, and underlying macroeconomic factors such as stable economies and a highly educated workforce. These factors are likely to continue driving the growth of the Venture Capital market in the Nordics in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.