Two years ago we ran an analysis where we discovered that there had been a 50/50 split between new and returning investors in the Nordics in Q1 2015. In the conclusion of that post, we postured that we felt a 70% returning and a 30% new would be healthier and more sustainable for an ecosystem needing to mature, predicting that we’d be there at the end of 2016.
Well, we weren’t too far off, as Q1 2017 saw a 64% returning and 36% new investor split.
The move in this direction makes perfect sense. 2015 was the height of the big increase in interest and capital in the region, meaning many investors were backing Nordic startups for the first time and have subsequently continued to invest. We’ve also seen a big increase in new funds targeting the region, as well as plenty of new angel investors and local funding options, particularly in Sweden.
In many ways, the fact that as much as 36% was from investors who’ve never invested in the region before is perhaps more surprising, although it demonstrates that there is still plenty of room for new players looking at the Nordics. The 64% is certainly testament to the number and strength of the local funding options we now have in the region, providing the backbone for fuelling the Nordics forward.
However, as the ecosystem moves further towards a stabilisation of the number of funding rounds but an increase in larger, later-stage amounts, it’s more than likely that we will see the dial start moving back towards a 50/50 split as we will see new funds emerge and different types of funds providing the capital to take the ecosystem further to maturity.