While investment levels out in terms of the number of rounds happening, there is still a noticeable increase in the later, larger rounds. In fact, we’ve seen 20 rounds above $10 million already this year, meaning we are well on course to surpass the 37 we witnessed across the whole of 2016.
In order to figure out what the scale-up scene looks like in the region right now, we decided to drill a little further into the 20 rounds and provide a mini-analysis of where the money is going at this level.
There’s no surprise that Sweden represents the majority of action on a country level, with 70% of the rounds above $10 million happening there. This is considerably higher than the 58.9% of all funding rounds that they represent in the region, really pressing home their dominance and ability to attract the larger amounts. Although, this is also a reflection of their relative maturity as an ecosystem.
Talking of maturity, it’s also encouraging to see Norway record three rounds above $10 million.
In terms of verticals, the most well-funded ones in terms of the number of investments also won out here with Enterprise SaaS and FinTech coming out on top.
As to be expected, we still need to look outside for International capital for the larger rounds, although admittedly the percentage isn’t perhaps as high as I expected it to be, as 50% demonstrates that there are also an increased number of options at a local level for investments in this range. And this is demonstrated by those investors that have participated in more than investment at this level all being local: Northzone, Alliance Ventures, Creandum and Industrifonden.
In conclusion, this analysis posts a much brighter picture than our analysis last week, where we outlined that 2017 could bring a down year of investment for the region. And it can certainly can be argued that what we’ve outlined in this post is more important for this stage of where the Nordic ecosystem is right now.
With 20 rounds already and above 50 projected, there’s certainly strong evidence that companies are not just able to mature but have the means and capital to do so, with plenty of local money available to help them do so, that’s not a bad situation for us to be in at all.