Venture Capital - Sweden

Sweden

Highlights

The total capital raised in the Venture Capital market market in Sweden is projected to reach US$422.50m in 2024.
Early Stage dominates the market in Sweden with a projected market volume of US$200.30m in 2024.
In global comparison, most capital raised in Sweden will be generated the United States (US$136.6bn in 2024).
Sweden's growing tech ecosystem is attracting increasing venture capital investments, positioning the country as a hotspot for innovative startups in the capital raising market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Sweden has been experiencing significant growth and development in recent years.

Customer preferences: Investors in the Venture Capital market in Sweden have shown a strong preference for investing in innovative and technology-driven companies. This is due to the country's reputation as a hub for technological innovation and its supportive ecosystem for startups. Swedish investors are particularly interested in sectors such as fintech, healthtech, and clean energy, which have shown great potential for growth and disruption.

Trends in the market: One of the key trends in the Venture Capital market in Sweden is the increasing number of early-stage investments. Investors are recognizing the potential of startups at their early stages and are willing to take on higher risks in exchange for potentially higher returns. This trend is fueled by the availability of government grants and support programs for startups, as well as the presence of successful entrepreneurs who are willing to invest in and mentor early-stage companies. Another trend in the market is the growing interest from international investors. Sweden's strong track record of successful startups, combined with its stable economy and favorable business environment, has made it an attractive destination for foreign investors. This trend has led to an increase in cross-border investments and partnerships, as well as the establishment of international venture capital firms in Sweden.

Local special circumstances: One of the unique aspects of the Venture Capital market in Sweden is the strong collaboration between the public and private sectors. The Swedish government has implemented various initiatives to support the growth of the startup ecosystem, including tax incentives, grants, and funding programs. This collaboration has created a favorable environment for startups to thrive and has attracted both local and international investors. Another special circumstance in Sweden is the emphasis on sustainability and social impact. Swedish investors are increasingly looking for companies that not only have the potential for financial returns but also contribute to a more sustainable and equitable society. This focus on sustainability aligns with the country's values and has led to the emergence of a vibrant impact investing sector in Sweden.

Underlying macroeconomic factors: The strong performance of the Swedish economy has played a significant role in the development of the Venture Capital market. Sweden has a stable and well-regulated financial system, which provides a solid foundation for investment activities. Additionally, the country's high levels of education, research, and innovation have contributed to the creation of a highly skilled workforce and a culture of entrepreneurship. Furthermore, the low interest rate environment in Sweden has made it attractive for investors to seek higher returns through alternative investments such as venture capital. With interest rates at historic lows, investors are looking for opportunities to generate higher yields, and the Venture Capital market offers the potential for significant returns. In conclusion, the Venture Capital market in Sweden is experiencing growth and development due to customer preferences for innovative and technology-driven companies, the increasing number of early-stage investments, the growing interest from international investors, the strong collaboration between the public and private sectors, the emphasis on sustainability and social impact, and the underlying macroeconomic factors such as the strong performance of the Swedish economy and the low interest rate environment.

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.