Nordic startup scene hit by 36% pullback in venture funding
Venture capital funding to startups in the Nordic region slumped by more than a third last year as investors became more selective.
By Rafaela Lindeberg/ Bloomberg
Companies in the region raised $11.7 billion in 2022, down 36% from an all-time high in 2021, according to a report from Finnish VC firm NGP Capital, Silicon Valley Bank and Dealroom. Despite the slump, the Nordic startup ecosystem was still worth more than USD 500bn.
As with the rest of Europe, the region experienced a “noticeable pullback” when it came to late-stage “megarounds,” according to the report. Companies in the early-stage phase held up better, raising USD 3.4bn, down just 6% from 2021.
That’s as investors began to focus on cash flow and profitability amid an increase in borrowing costs globally and a historic slowdown in initial public offerings.
