We’ve written extensively on the amount of venture capital now flowing into the region, and how even disregarding Spotify’s monster investment, capital continues to increase, the Nordics have passed $1 billion in funding in a year for the first time, and are even on course to potentially break the $2 billion barrier (although I suspect this to be nearer to $1.8 billion eventually)
However, equally important to the amount of venture capital, is the number of investments that are happening in the region. With increased attention on the region this year, and more and more people alert to the incredible amount of world-changing companies that have been born from the region, we wanted to know whether the number of investments has increased throughout the year, (seemingly) along with the strength of the narrative.
I don’t think there’s any need for a spoiler or keeping you in suspense as yesterday we announced that October was a record month for the number of investments, so I’m sure you won’t be surprised to know that the number of investments have increased throughout the year, however, what’s interesting is the speed of which they have, and the question whether they can sustain this at the end of this year and into 2016.
Aside from the odd slow month (Note: one was July, the notorious period when the Nordics essentially shuts down) the number of investments have clearly increased throughout the year and appear to still be rising.
This is even clearer to see when you look at it from a quarterly perspective.
It’s worth pointing out though, that although investments are clearly increasing quarter on quarter, the growth rate did slow, with Q2 on Q1 growing at 21.57%, and Q3 on Q2 slowing down to 14.52%, although this is likely more to do with the quiet Nordic summer than anything else.
With October a record month by quite some distance puts Q4 on course to continue the upwards trajectory, however November and December can historically be quieter, meaning we have to account for this in any projections. We’ve been conservative and kept the growth rate at 14.52% but due to the strength of October it’s more than possible that we will actually see more than the 81 investments we’ve projected for Q4.
But, even if we go with the conservative 81, then this year would mean that Nordic startups would see an incredible 279 investments, an 113% increase on 2014’s total of 131.
To get a sense of just how big this increase is, if this rate was maintained in 2016, it would mean that Nordic startups would fall just short of 600 investments next year, a number so big, it’s hard to believe that it’s possible, either way, that rate will be achieved this year, and with the momentum in investment both in terms of amount and regularity, 2016 should see another record breaking year for Nordic startups and venture capital.
Disclaimer: It should be noted that since starting The Nordic Web our sources have improved over time, so naturally, we are tracking more investments than when we first started, however not significantly enough to be able to claim any real difference to the numbers.
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