Analysis: October’s investments

After a stonking September, it was always going to be hard for October to maintain the level of investment we saw the month before. However, despite it not reaching September’s level, in terms of the number of investments October saw the 2nd highest of 2016, as the Nordics look set to finish the year strongly.

October was also a particularly strong month in 2015, yet 2016 still recorded an increase of 44% year on year. However, this is a slower growth than the two previous months, which recorded a 143% and a 79% year on year increase to their respective months in 2015.

It wasn’t a particularly impressive month in terms of the amount of capital being raised, although it was still a 16% year on year increase. Even still, this is the third consecutive month that the amount of capital has decreased.

Despite this, the number of investments is still operating at a high level, with the second most investments in a month recorded. What’s particularly striking now that September and October have recorded strong months is just how pronounced the valley is that sits over the infamous Nordic summer.

Norway had a very strong October, recording the most investments after Sweden in a month for the first time since we started The Nordic Web. October was particularly slow for Iceland, and it was fairly quiet for Denmark and Finland.

Despite recording less investments than September, October recorded more $5 million+ rounds, which are (perhaps worryingly) something of a rarity in 2016. With 7 above $5 million, and 3 of these above $10 million, this is a step in the right direction after the last couple of months have been fairly sparse.

Investments per vertical were pretty diverse in October, with 13 verticals attracting 3 or more investments, demonstrating the strength of talent diversity that exists in the Nordic ecosystem right now. Two data points worth mentioning are the increase in investments in Deeptech and the decline in investments in FinTech.

October saw the lowest International investor participation of 2016 so far, with just 12.9% of funding rounds including a minimum of one investor based outside of the Nordics.

The number of investments continue to be high, while the total amount of capital continues to decrease, as early-stage investments continue to dominate proceedings. However, there was enough activity at the later stages to indicate that this could arrest itself before the end of the year.

“In the tech world, things move fast and companies are born anywhere in the world. I’m able to have an ear to the ground with The Nordic Web – the content is fresh, local, and of high quality, which is exactly what you need as a seed investor.

In fact, it’s through Neil Murray’s newsletter that I first heard about Mapillary. Several months later, I was fortunate to lead our firm’s investment in the Company to help drive the creation of a crowdsourced visual representation of our world”

— Nathan Benaich, Playfair Capital

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