At the beginning of 2015, together with our Partner Stockholm Business Region we revealed that in 2015, Stockholm accounted for 27% of investments in the Nordics and 50% of the total amount invested.
With the rest of the Nordics seeing rapid interest and investment in their various ecosystems, there was a strong possibility that Stockholm would perhaps see less of the action in 2016, due to more and more companies popping up all over the region.
However, it seems that Stockholm’s position as the main investment epicentre is unrivalled for now, as not only did 2016 see them maintain their position as the dominant city in the Nordics for investment, it actually accounted for even more funding action than in the years prior.
Disclosure: Stockholm Business Region is a partner of The Nordic Web and this infographic was produced under that partnership
The total amount that Stockholm startups are accountable for has risen from 50% to 54% (although Spotify’s $1 billion debt round is largely responsible for this) but perhaps more surprising is the significant jump in the increase in number of investments.
Stockholm has risen from being the base of 27% investments, to 35%, meaning that Stockholm now accounts for more than 1 in 3 investments that happen in the Nordics.
This increase is mainly happening at a pre-seed and seed level and is fuelled by a number of very active angels and local early-stage money, a clear advantage of a mature ecosystem, as Stockholm should certainly be classified as.
The reason why this is particularly surprising is that the number of investments across the Nordics grew 108% year on year, but Stockholm is still outpacing the average, with a 174% increase, meaning that although other ecosystems are beginning to attract more investment, Stockholm is continuing to outpace them all and continues to grow itself.
As we’ve previously highlighted, in terms of investments, Stockholm is the only city in the Nordics that can truly be considered a FinTech hub, as they accounted for 46.5% of all investments in this sector in 2016 and it continued to be their dominant vertical.
Interestingly, the only other vertical that Stockholm dominated the Nordic investment in to this extent was the Internet of Things, with half of the 24 IoT investments in the region last year being made in Sweden’s capital city.
Stockholm also continues to be an attractive proposition for International investors as well, with some of the World’s most prestigious investors again investing in the city in 2016.
Despite the continued developments in ecosystems around the Nordics, it’s clear that Stockholm is currently unrivalled when it comes to attracting investments. On it’s current investment trajectory, it will comfortably surpass 500 investments in 2017, meaning it’s likely to see more investments this year than the whole of the Nordics combined saw in 2014 and 2015.
This demonstrates not just the incredible rate at which the region is currently seeing the number of investments increase, but also the key role that Stockholm is playing in this.