21 investments totalling $55.4 million
After a slow Q2, Q3 saw the number of investments in Finland return to the level we saw at the beginning of the year, but, it was still not near the high we saw at the end of 2015.
However, we have seen over the last couple of years that Finland follows a similar pattern, always peaking in Q4, we wouldn’t be surprised if that was the case again this year.
In terms of the amount of capital it was the slowest quarter of the year so far.
It should be pointed out however, that our analysis is based on private investment, meaning the multitude of loans from the European Investment Bank into Finnish companies has not been included in this analysis. Although we only analyse private investment, it would be remiss of us not to mention this, as clearly there are other funding sources being provided to Finnish companies, meaning the amount of capital when considering all sources would be considerably more than the below.
The biggest reason for the amount of capital being relatively small in Q3 is due to the type and size of the investments being made. 85.7% of investments made were below $5 million, with nearly 40% (38%) below $1 million.
Although investments are happening at an early-stage, much like the rest of the region, there is no increase in the number of later-stage investments when comparing to Q2 2016 and Q3 2015.
However, there were two funding rounds above $10 million in Finland in Q3, with both of these also featuring in the ten largest rounds in the entire region for this quarter.
It was no surprise that the typical verticals that you would associate with Finnish companies attracted the most investments in Q3.
Helsinki dominated in Q3, accounting for over 70% of Finnish investments. Tampere was the only other Finnish city who recorded more than just one investment, with three.
As ever, International interest from investors in Finland was high in Q3, with nearly half of all funding rounds including at least one investor who is based from outside of the Nordics.
In conclusion, Q3 was a more positive one than the previous quarter, and suggests that we could be set up for a typically strong Finnish Q4 finish.