Earlier this year, we took a look at the 10 other Nordic cities outside of the main hubs who have attracted the most investment over the last couple of years.
In fifth place on our list, was Gothenburg, a city on the West coast of Sweden that has typically been overshadowed by Stockholm and Malmö when we talk about Sweden’s main startup hubs. However, this could be set to change and as we noted in the previously mentioned article, earlier in 2016, Gothenburg was second only to Stockholm in seeing the most investments in Sweden (Malmö has now surpassed them).
Either way, as of the end of last week, Gothenburg has seen 12 of their tech startups receive funding this year, a marked increase from the last couple of years.
In fact, despite only being 1/3rd through the year, 2016 has nearly seen as many investments into Gothenburg start ups as the last two years combined, a remarkable increase even considering the fact that investment has increased across the Nordics as a whole. For context, if that rate of investment was maintained, then this year would see around 36 investments into Gothenburg startups, a x4 increase year on year.
In terms of the size of the investments that have been made in Gothenburg this year, the signs also point to a relatively immature but blossoming hub.
Notably, none of the 12 investments in 2016 have been above $3 million, (the highest round in Gothenburg so far this year is $2.4 million in Satcube, and half of that was a loan from the European Investment Bank) which means that although Gothenburg may be lacking in more established startups (although Saltside and Fishbrain both have strong roots in the city) there certainly seems to be investable early-stage companies based there.
In many ways, the rise in interest and investment in Gothenburg should be expected, in fact, it could be argued that they have been punching below their weight until now, considering they are the fifth largest city in the Nordics. However, it appears that Sweden’s second largest city is finally joining the party, and investors are invited.
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