Analysis: June’s Investments

It was always going to be hard for June to match the relative heights of May for the number of investments and although it did fall short, last month was by no means a bad month for funding announcements in the Nordics, even with summer approaching.

There was a 37.5% year on year growth from the previous June, one of the strongest increases we’ve seen when comparing months this year, demonstrating that although it didn’t match May for the number of investments, in June terms, this was a very strong month and bodes well for the upcoming Summer.

 

This growth doesn’t carry over into amount of capital invested though, with this June seeing around $27 million less invested in total. However, it still represents significant growth from June 2015 and 2014 (although we have removed Spotify’s $526 million in the former in order to get a better sense of the general picture minus the anomaly).

Although June was only the third highest month for the number of investments we’ve seen this year, we now seem to have firmly left the relative lows of January and February behind us, with no month recording less than 60 since then, although with the summer now in full swing, it will be interesting to see if this can be maintained throughout July and August.

Sweden is so consistent, barely seeing a swing of 5 investments either way each month. However, it should be pointed out that consistency in number means that no real growth is happening either. Elsewhere, it fluctuated up and down as ever, with June seeing Denmark coming out on top again in the race for second place. Iceland, once again recorded no investments.

After we witnessed an increase in the $500,000-$1 million range in May, this phenomenon continued into June. Previously a barren wasteland compared to other early-stage investment ranges, this recent momentum can perhaps be explained the sheer number of <$500,000 investments we saw in 2016 that now need more fuel and are raising a ‘proper seed’ or even a bridge to one.

Most importantly, once again, we see strong performance in the $5-10 million and $10-20 million ranges, something that we were missing last year but is much needed now with the amount of early-stage companies that have been funded in the region.

Four verticals stood particularly strong in June, with FinTech ultimately coming out on top once again. Entertainment and Media had a good month. Further down we can see that VR and AR and Energy, two verticals we’ve focused more on recently also had a solid June.

International funding participation reached its highest levels in 2017 so far as 1 in 4 investments in the region in June had at least one investor from outside of the Nordics take part. As would be expected, a large proportion of these were taking part in the larger rounds.

With funding announcements expected to be slower over the next two months, a stronger than usual June hints at a summer that may not be as tepid as previous years. Time will tell, but what we do know, is that after a strong May and June, Q2 at least, certainly finished on a high, more on that tomorrow.

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.