Venture Capital Finland

Similar to other countries in Europe, Finland has quickly become a place of growth for start-ups. There is a strong push for growth in the business sector, and the venture capital market is proof.

Venture Capital Finland

The venture capital market in Finland remains lucrative. Extensive reports on the financial situation indicate that investments increase in number and that institutions are providing more significant funding.

Investors in Finland are providing support for companies that have strong potential in various fields. Start-ups gaining support include those in industries such as food, technology, transportation, artificial intelligence, and technology. In 2019, it was reported that Finland is the leading country in terms of venture capital investments. VCs in the area amounted to over €782M. This number puts it above the United Kingdom and Denmark, countries previously regarded as leaders for venture capitalists.

In addition, this has also led to Finnish start-ups getting support from international investors. Over €290M in funding has been allocated to Finland from investors in other countries. This shows how much the venture capital industry is thriving in the European nation.

As a result of this growth, over 150 start-ups have received increased goodwill and support from VC deals. These transactions average at €9M per start-up, which is a sizable number for any company looking to get a boost in financial aid.

Well-Known Start-ups from Finland

The start-ups in Finland come from diverse fields and interests. One of the rising companies is IQM Quantum Computing, which deals with computer devices and hardware. IQM specializes in superconducting, solving problems that real-world analysts cannot crack. The advanced technology has made them a strong player in the computer industry, with investments currently rising. Their work has been cited in numerous publications. On social media, the company boasts more than three thousand followers.

Investors are now looking into the ramifications of their environmental actions. That is why it makes a lot of sense for Cooler Future to gain a lot of traction. This Finnish start-up began in 2019, but in that time, their funding amounted to over €1,4M. Interest in their sustainable operations has made them a lucrative investment for financial institutions. After all, reducing carbon emissions is a worthy endeavor for any company.

Gaming is perhaps one of the most stable sources of entertainment in the world. The start-up takes advantage of this by incorporating new technologies such as robots and high-definition video. They have become very effective in their developments and they already have partnerships with big companies such as Ubisoft. Surrogate is also managed from home, which makes their feats very impressive. They have amassed €2 million in funding so far.

Finland is also not lagging behind communication-based start-ups. Happeo is one company that prioritizes a stable communication platform as its vision. Their approach is to provide an all-in-one channel for communicating with others, spreading information, and connecting people. Organizations such as the WWF and BMW have begun to use their service, which has amassed nearly €10 million in funds.

Top Start-up Cities in Finland

Although it might be natural to think that Helsinki is the top start-up city due to being the capital, many cities in Finland are also lucrative spaces for businesses. Nonetheless, Helsinki is seen as the best start-up ecosystem in the world. Despite being founded in 2019, Robocorp has garnered acclaim from other players in the tech industry. This start-up is revolutionizing workspaces for larger companies, bringing together open-source and automation technologies.

The €6 million-funded Sensible 4 also hails from Helsinki. This company doubles down on vehicle automation, creating driving ecosystems that can power through extreme weather conditions. Automated or driverless vehicles are currently facing criticisms for being unreliable during storms, and Sensible 4 intends to correct problems related to sensor visibility and safety.

Other cities such as Oulu and Tampere are also promising cities to invest in start-ups. The former is home to Augumenta, a promising venture that focuses on smart glasses. Oulu is also the origin place of Entoprot, a start-up using the larvae of the black soldier fly in producing protein for farming.

Meanwhile, the urban farming venture Blokgarden Oy hails from Tampere. Ozonium, another start-up based in the city, is finding ways to turn ozone into an alternative form of energy. The game development studio Skydome Entertainment has also been gaining traction, as well as the software company Vertics.

Venture Capital Exits in Finland

From 2007 to 2016, there was an up-and-down trend in terms of divestments in Finland. During 2016, the value of exits in the country reached over €470M. However, the peak was in 2013 with €715M.

Investors in the country exited over seventy companies in 2018. Since then, interest in listings has decreased. Most of the venture capital exits involved companies listed in the Helsinki Stock Exchange market. Among these exits, forty were larger-scale companies, while thirty-two were start-ups.

Still, these exits serve as proof that Finland has a bustling start-up scene. Investors continue to find that innovations in this country are worth considering, as companies raise an annual average of €8M in growth for stock listings.

Technology continues to grow and innovate in Finland, providing convenience and information inside and outside of the region. Start-ups will continue to be funded by these deals, especially since their track record has already been established.