July started with a bang, with a flurry of funding announcements leading us to believe that this Nordic summer might be different. However, the last couple of weeks went deadly quiet, meaning we were indeed led into a false sense of security, with July ending up being very quiet, in fact with 46 investments, this was just one more than we saw in July 2016.
This is the slowest year-on-year growth for a month so far this year, however, as it is summer, we shouldn’t read too much into it, although it does come as a bit of a surprise after funding announcements had significantly picked up in May and June. For the record, the exact year-on-year growth rate was 2.22%, compare this to June’s 37.5% and you can see just how dramatically things have slowed down this summer.
The capital invested was also very low, with July 2017 not just coming in behind July 2016 but also July 2015, which is very uncommon for these monthly analyses. This was also half the capital that we saw invested in June, demonstrating that we witnessed a significant slowdown both in the number of investments and the amount of capital invested.
For wider context, July 2017 was the slowest month for the number of investments since July 2016. It helps to place it in this context as we can see that it is likely to be all upwards from here with July serving as the year’s low point. If it isn’t, then we should perhaps start worrying as to the current health of the Nordic investment scene.
Norway and Denmark clearly forgot to break for Summer, with similar numbers for “regular months” posted. Therefore, we can point the finger at Finland and Sweden for not keeping up their end of the bargain and taking the summer more seriously.
Unsurprisingly (considering the total capital invested) there was a lack of funding rounds above $5 million, with most of the action occurring in the <$500,000 range, which is a break from the norm in the sense that $1-3 million is consistently the bracket where most action occurs each month.
Energy performed strongly once more (we highlighted the emergence of this vertical here) jointly seeing the most investments alongside one of 2017’s strongest performers, Health and Wellness. Further down the chart, all the usual suspects were present.
There was just 6 investments announced in July that included an International investor, again, considering the lack of investments above $5 million this is hardly surprising.
In conclusion, it appears that the curse of the Nordic summer strikes again, the good news is that it can (surely) only go up from here.