In Q2 2016, we tracked 16 Finnish investments totalling $64.59 million
(For the first time ever, we are producing individual quarterly funding analyses for each Nordic country, to place the Finnish analysis in context, check out the Q2 2016 Nordic Funding Analysis)
Finland has always been fairly erratic when it comes to analysing funding quarter by quarter and Q2 2016 proved to be no exception. With only 16 investments recorded, this mirrored Q2 of 2015.
The 35 investments recorded in Q4 2015 now looks even more like an outlier rather than the start of an increase in Finnish investments.
The erratic funding performance is best demonstrated by the peaks and troughs that the total amount of funding per quarter brings us. Clearly, this was one of the ‘down’ quarters, but even still, more capital was raised in Q2 2016 than in Q4 and Q2 2015. It will be interesting to see whether Q3 follows the pattern and sees a considerable amount of investment into Finnish companies.
Finland actually fell to fourth in terms of claiming the most capital in the Nordics, with Sweden, Denmark and Norway (for the first ever time) raising more capital than them.
This was also the case in terms of the number of investments.
This was all in spite of some particularly large rounds in Q2.
In terms of where the investments were made, this all looks very healthy, as companies were able to raise investment at pretty much all stages, although no investments in the $1-3 million range noticeably stands out.
It’s even more noticeable when we compare Q2 2016 to Q2 2015, with 7 investments in the $103 million range last year compared to the 0 in 2016.
This gives us a real insight into the Finnish investment scene right now, with Finnish companies perhaps finding it easier to raise some initial capital below $1 million (6 vs. 3 in 2015) or raising bigger seeds/small A’s at $3-5 million (4 vs. 1 in 2015). This is seemingly an investment trend right now, although in the Nordics, it is just Finland that is currently experiencing this.
In the context of previous quarters in Finland, Q2 wasn’t spectacular but it certainly wasn’t disastrous either. However, one worrying sign for Finland is that despite the increase in investment in the Nordics as a region over the last 12 months or so, they don’t seem to be attracting any of this additional capital, while all of the other countries do, so while capital into Finland continues to flow along quite nicely, it could do worse than think of how to attract this extra capital, as otherwise it could struggle to do so in the future.