A natural inclination would be to assume that as the amount of capital increases into the region, inflation occurs and time passes, that the average investment in the Nordics would also move in an upwards direction. However, this has actually decreased from $1.65 million in the respective time period in 2015 to just $1.1 million in the first ten weeks of 2017.
This is of course due to the sheer number of early-stage investments that are still flooding into the region, and continue to mean that early-stage investment reigns supreme.
If I sound surprised, it’s because I am. With investments levelling out, and a considerable number of $10 million+ investments already this year, I would have at least expected a higher median than the beginning of 2016. These larger investments, such as Fuse, Xeneta and Soundtrack Your Brand, made me feel more at ease regarding the number of companies that had the quality to go on and raise later capital that would enable them to scale, after such large numbers of them had raised pre-seed and seed investment since 2014.
The fact that $10 million+ investments are considerably higher than the first ten weeks of 2016 and 2015, yet the median investment size is still lower than 2015 and 2014 speaks volumes to the exceptional number of early-stage companies we are still seeing raise capital in the region as we sit at nearly a quarter of the way through 2017.
In terms of pipeline and the development of an ecosystem, this is of course important, but at some point there becomes a danger that the quantity being needed to produce quality starts having the opposite impact. However, with $10 million+ investments also on the increase in parallel, there’s hope that this is one milestone the Nordics don’t reach soon.