We have high expectations for investment in 2018 and a strong start to the year would certainly provide us with some fuel for that fire. However, January provided us with more of a smoulder than an inferno, with 51 investments totalling $225.3 million.
This was quieter than January last year and only one more than we recorded in January 2016 and on balance is pretty par for the course for a beginning of a calendar year.
The capital invested was a record for January though, with an additional $20 million or so raised from last year, as the total capital invested in the region continues to rise even with the number of investments remaining stable.
If we zoom out, January seems particularly disappointing, with only July (peak Nordic summer) recording less investments.
It appears that this was largely due to a shortfall in funding announcements in Sweden, where their 30+ average was significantly lower. Denmark, Iceland and Norway all recorded strong months above their averages.
The large amount invested can be accounted for by the fact that there were 7 investments above $10 million, with 4 of these above $20 million. 11.76% of investments happening between $3-5 million is above average and offers further proof of the general Nordic funding pipeline maturing.
The usual suspects all recorded the same number of investments, with the “surprises” being that Education and Real Estate also recorded strong months. We dug into the latter during last year.
With 13.73% of January’s investments above $10 million there’s no surprise to see that International investor participation was reasonably high, as the appetite to invest in the region from those outside continues apace.
For a year that we’ve declared to be able to surpass 1,000 investments, January has certainly dealt us a punch to the gut of our 2018 expectations. We now need to see an average of 86 investments per month from here on out for that to be achieved, and accounting for the infamous Nordic summer, it’s likely that we will need to see some months with 100+ investments.
While this seems a tall order, we’re still confident that 2018 will play out this way and that the handbrake is about to be released.