I’m calling it now. Yesterday will go down in the history books, as not only did Spotify’s huge $526M round mean they became the highest valued Nordic startup ever ($8.53B), it also marked the first time that Nordic startups have raised more than $1B+ in a calendar year. Oh, and it’s still only June…(!)
To give some context as to how notable an achievement this is, London startups, often hailed as leading the way in the European tech scene only collectively passed $1B in venture capital raised for the first time last year, totalling $1.35B. Nordic startups are well on the way to surpassing that, and as we’ve alluded to before, are currently on course to raise in the region of $1.5B in 2015.
Sceptics will of course (and perhaps understandably) point to the fact that Spotify’s monster round accounts for half of the money raised in the Nordics this year, however, even without Spotify’s round, average round size is significantly higher this year compared to last ($6.05M vs. $4.67M) and more startups have raised at this point than last year too (88 vs. 71), pointing to a greatly improved ability to attract venture capital in 2015.
And no matter what the critics say, the fact remains that Spotify is a company that didn’t move to the valley, it kept it’s roots in Sweden and yet it still managed to raise a $500M+ round, the highest round that a European company has managed in 2015.
Spotify’s success has certainly helped further the spotlight on the Nordics, and will no doubt alert more investors to the immense potential and talent that exists here. In fact, this incredible growth rate of venture capital in the region could see Nordic startups compete with London and Berlin in terms of amounts of venture capital raised within just three years.
Bold predictions can wait for now though, as today we can reflect on a major milestone being passed in the growth and the story of the Nordic startup ecosystem.