After bringing you our key findings from analysing seed rounds in Denmark, and ahead of our regional overview, we bring you seven key findings from the next country to go under the spotlight in our series of seed analyses: Finland.
1. The average seed round is $1.26M.
This is a very healthy average amount for seed rounds and is pretty much on par with the average seen in the Nordics so far in 2015 ($1.28M), and as expected it came in higher than Denmark’s, however we can still expect it to be below Sweden’s.
2. The median seed round is $1.1M.
The seed rounds were fairly wide ranging, with the highest coming in at $2.5M and the lowest at $411,000, with the median coming in at $1.1M. Interestingly, there appeared to be a gap between $1.5M and $1.1M, with only a couple of rounds falling between this range.
3. The median time from being founded to raising seed is 36 months.
This seems pretty high, especially when you consider that in Denmark it’s 20.5 months. I believe part of this is due to data only being available on 69.23% of the Finnish startups that raised seed and the time lapsed since they were founded. What’s also interesting is that this is in stark contrast to how long it takes Finnish companies to raise a Series A from Seed, as they have the shortest average period between raising a seed and a Series A in the region at just 12.6 months.
4. 23.68% raised an Angel or pre-seed round first.
This is likely to have had an effect on the longer time that Finnish companies appear to take when raising seed, with nearly one in four raising an angel or pre-seed round before raising a proper seed round.
5. 16.13% of seed rounds had an International investor participate.
This came out lower than I expected as Finland actually possess the largest amount of International investors at Series A in the region, with 58.8% of A rounds including an International investor compared to Sweden’s 52.9% and Denmark’s 37.5%. International investors are clearly aware of the opportunity in backing Finnish startups, although they still appear to be wary of moving too early.
6. Gaming and health startups attract the most seed money.
No surprises here, as gaming and health, the two verticals that Finland are most known for and have such a great track record in, attract the most seed investments. With both of them attracting 17.95% of the seed rounds, combined, gaming and health accounts for 35.9% of all of the seed rounds raised in Finland, more than 1 in 3.
7. Finland possess some of the most active seed investors in the Nordics.
This week we will be publishing a members article looking at the 15 most active seed investors in the Nordics. Incredibly, Finland possesses six of these (Butterfly Ventures, Inventure, Tekes, Lifeline, Finnvera and Reaktor Polte) meaning they benefit from having a higher number of prolific seed investors present than any of the other Nordic countries.