Finland remain well on course for a stronger 2017 than 2016 with another credible three months of investment announcements despite the Nordic summer.
In Q3, Finnish startups saw a total of 29 private VC tech investments totalling $140.3 million.
With Q4 traditionally strong for Finland due to Finnish startups readying their announcements around Slush, Q3 has put the Finns on course for what should be a strong amount of growth this year in contrast with what we will likely see across the region as a whole. Even with the Nordic summer, traditionally a slow time for funding announcements, Q3 was the third highest quarter for investments that Finland has seen in the last couple of years.
And when it came to capital invested, it was actually the highest amount that’s been invested into Finnish startups in a quarter in the last couple of years, meaning 2017 is also on track to also see more capital invested than 2016.
With Wave Ventures and Icebreaker.vc new, active early-stage Finnish VCs, we can confirm that the 3 undisclosed investments were made in the <$500,000 bracket, despite the 0 that is present in the chart. Still, the $1-3 million range is where the majority of the action is happening in Finland, although the 8 rounds above $5million go someway to explaining why the amount of capital invested came out at a recent high.
The three verticals that Finland are most heavily associated with being strong in all came out on top, with Deep Tech, Health and Wellness and Enterprise SaaS the top three (Entertainment and Media also saw 3 investments).
MariaDB closed a further $27 million to close their latest funding round at $54million. These top 5 investments actually accounted for 43.6% of the total capital invested into Finland in July, August and September.
Helsinki startups were responsible for 65.5% of the Finnish investments in the last quarter, the same amount they accounted for in Q2, therefore continuing to be above the 58.6% witnessed across 2016. Oulu and Turku both recorded multiple investments after a quiet Q2 for both.
As ever, Finland attracted the most international investment in the Nordics in Q3. In fact, it was markedly up from Q2’s 31%, as investors around Europe and the world continue to be attracted to Finnish startups.
Finland’s strong Q3 and in fact strong 2017, is in contrast to how the region as a whole is performing. While I have no real explanation for this, one possible theory could be that the brand and relationships that the Finnish scene has built up with international investors could mean that they have experienced a certain level of immunity from any potential slowdown affecting the rest of the region. With Q4 always strong for Finland, it will be interesting to see where 2017 ends up.