Nordic VC Funding — 2022 Review

Key takeaways:

• VC Funding in 2022 in the Nordics reached a total of $10Bn (-33%)
• There were a total of 780 investment rounds (-7%)
• Total exit value was more than $26Bn (-42%)

The Nordic VC Funding Landscape

It’s well established at this point that the Nordics is one of the most active startup regions in the world.

In terms of VC funding, 2021 was a record year by far with some of the biggest venture rounds in Europe.

In 2022 however, we saw a sharp drop of more than 30% in total amount invested. Although this sounds like a lot, it can be seen as a regression to “normal’ levels of growth compared to previous years — funding levels in 2022 were still almost double the amount in 2020.

These numbers are in line with global funding trends. A?recent report?by Crunchbase shows that there was a 35% decline in global venture funding.

While the actual funding amounts were lower compared to previous year, some of the biggest new venture funds were raised in 2022. Both Northzone and EQT Ventures announced new $1Bn+ funds last year in addition to a number of?new early stage funds. It’s safe to say there is more funding available for early stage tech companies than ever before.

Here’s a breakdown of venture funding in the Nordics in 2022:

Nordic Venture Funding 2022

Venture funding in the Nordics reached?$10.6 Bn?in 2022. This represents as 33% decline compared to 2021.

While the total funding amount declined by a third, the number of funding rounds in 2022 declined by only 7% compared to previous year.

There were 780 funding rounds in 2022 and the top 10 rounds accounted for more than 20% of the total amount invested.

Here’s a selection of the biggest funding rounds in 2022:

Biggest Funding Rounds 2022

1. Northvolt - $1.1Bn
2. Klarna - $800M
3. Relex - $568M
4. Einride - $500M
5. Volta Trucks - $260M
6. Aiven - $210M
7. Juni - $206M
8. Instabox - $190M
9. Ark Kapital - $183M
10. Kry - $160M

Nordic Tech Exits 2022

Venture backed companies are expected to eventually be sold or go public. The number of tech exits in a region is a good indication of the strength and maturity of the startup ecosystem in that region.

In the Nordics we’ve seen a number of high-profile tech exits in the past years. In fact, the biggest European tech exit in history was by a Stockholm based company.

In 2022 the total exit amount reached $25.9 Bn.

This represents a 42% decline compared to previous year, and in line with 2020 levels.

Here’s a select number of tech exits from last year.

Biggest Nordic Tech Exits in 2022

1. Wolt?— Acquired by Doordash
2. Tink?— Acquired by Visa for $2Bn
3. InRiver?— Growth investment by U.S based Private Equity firm
4. Peltarion?— Acquired by game developer King
5. Next Games?— Acquired by Netflix for $72M

In terms of number of exits, there were 535 in total. This represents the second highest number of tech exits ever in the Nordics, with 2021 being the record year with just over 600 exits.

Nordic Unicorns and Scaleups

More than 10 new tech unicorns were minted in 2022.

There are now 64 tech companies valued at more than $1 Bn in the Nordics.

Some of the most well-known tech unicorns in the Nordics include Finnish gaming company Supercell, Swedish payment company Klara, and Danish spend management company Pleo.

Some of the companies that reached billion dollar valuations last year were Cint, Oura and Einride.

The success of tech unicorns and scaleups in the Nordics is a testament to the region’s strong ecosystem for entrepreneurship and innovation.

With a supportive regulatory environment, access to capital, and a pool of talented entrepreneurs, designers and engineers, the Nordics are well-positioned to produce the next generation of successful technology companies.

If you’d like to know more about the tech and venture community in the Nordics, connect here on?Linkedin?or follow me on Medium.