Analysis: August’s Investments

After a complete washout for funding announcements at the start of August which led us to declare that it was set to be the slowest month for announcements in the last two years, the last 10 days really came through with an avalanche of news of new deals meaning that last month ultimately ended up on 54 investments totalling $133 million.

This even put us ahead of August 2014, something which looked impossible when we were on course for one of the slowest summers ever in the Nordics just a couple of weeks before. Although there isn’t much growth year-on-year, considering where we were, I would say this was a positive development.

Still, the total capital invested came in below last years, meaning that we can likely thank early-stage investments (we’ll confirm this below) for ensuring that August became a respectable month for funding announcements.

So, after being on course for just 30 investments with 10 days to go, incredibly August came in even above July, meaning that Q3 now has the chance to be a fairly strong one assuming September continues in a similar vein to the last two weeks. September is traditionally one of the strongest months of the year and I would expect that to be the case this year as well.

Denmark had a miserable month for investments, with the summer seemingly hitting them extra hard. Iceland had a strong month in comparison to previous, while Finland, Norway and Sweden all performed fairly well.

Larger rounds were minimal with none above $20 million, however five rounds above $10 million is still strong for a reasonably quiet month. As usual, activity was strongest below $500,000 and between $1-3 million.

Health and Wellness continued its strong 2017, while DeepTech’s revival in investment this year also continued. Rather bizarrely, Enterprise SaaS fell off the radar for the first time this year, with the other common favourite FinTech also only coming in 4th in another turn up for the books.

International investment eventually finished at 20%, with the early rounds in the last 10 days diluting the earlier strong International involvement. Still 20% is a stronger representation than we’ve seen in recent months, adding credence to our theory that it is not just the startups in the region that have a quiet summer but the investors too.

In conclusion, August recovered to such an extent that the prospect of Q3 being the slowest quarter for investments for over two years now looks like a slim possibility. However, it is still worth noting that September would still need to see 88 deals announced in order to record more investments than Q3 2016. Therefore, although August eventually made a mockery of our grim projection, the reality is that this was still a slow summer, with year-on-year growth at a quarterly level essentially at a standstill for Nordic investments right now.

Neil S W Murray founded The Nordic Web in 2014 in order to provide the Nordics with the quality coverage it deserves. As well as being Founding Editor of The Nordic Web, Neil is also an active community builder in the region, participating in a number of initiatives, and has previously worked for Tech.eu.