Startups and Venture Capital in the Nordics
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1 frontline.vc Startups & Venture Capital in the Nordics Big things from small places A PAN EUROPEAN PERSPECTIVE BROUGHT TO YOU BY: northzone.com
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Startups & Venture Capital in the NordicsBig things from small places
A PAN EUROPEAN PERSPECTIVE BROUGHT TO YOU BY:
northzone.com
2
The Nordics
Denmark Finland IcelandNorwaySweden
9.6m 5.6m 5.4m 5.2m 330k
Stockholm 1.3m Copenhagen 1.2m Helsinki 1.1m Oslo 950k Reykjavik 200k
POPULATION
LARGEST CITIES
LANGUAGES
Swedish Danish Finnish Norwegian Icelandic
The Nordics lead Europe in value creation
3
0
13
25
38
50
€21b
€37b€40b€42b
0
5
9
14
18
3
6
10
18
CUMULATIVE VALUE OF €1bn+ STARTUPS # OF €1bn+ STARTUPS
GP Bullhound 2016 Unicorn Report, (even more so per capita!)
With less capital than European peers
4
0
225
450
675
900
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
Sweden Germany UK Nordics (Aggregate) Denmark Finland Norway Iceland
The Nordic Web, Northstack, Gil Dibner Slideshare Presentations
QUARTERLY FUNDING EX-MEGA (€100m) ROUNDS
Qua
rter
ly fu
nds r
aise
d ($
1m)
€1.3bn
€5.6bn
$1bn
$1.2bn
€2.4bn
€8.5bn€5.6bn
€10.2bn
€2.3bn
€8.5bn
5
Global champions are born
€1.3bn
€5.6bn
€2.5bn
GP Bullhound 2015 Unicorn Report, GP Bullhound 2016 Unicorn Report, Proprietary, Last valuation
€1.1bn€600m
$3bn$1b €500m
$2.5bn
$1b
€600m
6
Ecosystem
7
The Nordics have a diverse venture capital scene
0
250
500
750
1,000N
orth
zone
EQT
Vent
ures
Cre
andu
m
Indu
strif
onde
n
Alm
i
Seed
Cap
ital
SEB
VC
Suns
tone
Mon
tene
ro
Inve
ntur
e
Allia
nce
Vent
ure
Ope
n O
cean
Cono
r Ven
ture
Life
line
Nor
thCa
p
Cono
r
eEqu
ity
NSA
Acce
lera
ce
Frum
tak
3040506070708090100100120
185200250270
300
400427
566
1,000
Northzone, Creandum, Industrifonden3, Monterro, Sunstone2, Seed Capital, Inventure, Conor, Open Ocean1, Nordic Venture Partners?, Northcap1, NSA2, Partner Invest Norr,Viking, Alliance Venture
Tota
l Fun
ds R
aise
d or
Sim
ilar (€1
m)
1Latest Fund, 2Estimate, 3Evergreen. Norway Startup Scene
Funds domiciled in the Nordics or primarily do business there
8
Healthy funding options across the spectrum
Pre-Seed/ Seed Series A - B Late Stage
Note: approximation, many investors participate across different stagesVostok New Ventures, Kinnevik, EQT, eEquity, Neqst, Butterly, Spintop, The Nordic Web
9
Active late stage funders
0
2
4
6
8
Northzone
Creandum
Sunstone
Index
Finish Industry
Industrifonden
SEB
Daw
n
Intel
Open O
cean
DFJ Esprit
Seed Capital
3333333
44
6
88
# OF $10M+ FUNDING ROUNDS 2014-16
Nordic Web, January 1st 2014 - June 30th 2016
0
10
20
30
40
Swed
en
Finl
and
Den
mar
k
Nor
way
Icel
and
35
1316
34
$10M+ NORDIC FUNDING ROUNDS BY COUNTRY
10
And attract US investment
Mature ecosystem with many successful exits behind it
11
Strengths
Startups target early global expansion
Strong technical design heritage and focus on R&D
drives innovation
Culture that values work life balance
Successful exits breed serial entrepreneurs, and angels
Flat organisational structure to drive positive outcomes
The three secrets to building your startup the Swedish way
Stock option programmes are taxed as income, at a rate
of up to 57%1
12
Challenges
In Sweden1,Tech.eu Interview with iZettle2,Analysing Iceland’s Venture Capital Scene3.Iceland has a tech-sector strategy problem4
5 countries, languages, currencies and cultures
Better opportunities abroad for some entrepreneurs4
Domestic market is relatively small
Real estate is scarce, difficult to find homes for talent2
Icelandic capital controls and small exits to date3
13
Selection of Investors
14
Who to know
Shay Garvey Will Prendergast
William McQuillan Stephen McIntyre
Fredrik Cassel Daniel Blomquist
Johan Brenner Staffan Helgesson
Hans Otterling Jessica Nilsson
Pär-Jörgen Pärson Jeppe Zink Bjørn Stray
Juha Lindfors Timo Ahopelto
Petteri Koponen
Patrik Backman Tom Henriksson
Richard Muirhead Ralf Wahlsten
Hjalmar Winbladh Kees Koolen Lars Jörnow
Carsten Schou Ulla Brockenhuus-Schack
Niels Vejrup Carlsen Ulf Rosén
Lars Andersen
Max Niederhofer Christian Lindegård Jepsen
Jari Mieskonen Manu Mäkelä
Jarkko Penttilä Chris Barchak
creandum.com @creandum
northzone.com @northzone
lifellineventures.com @lifelineventures
eqtventures.com @eqtventures
opeanocean.vc @openoceanvc
frontline.vc @frontline
conor.vc @conorvc
seedcapital.dk @seed_capital
sunstone.eu @SunstoneVC
Series A and beyond investor with offices in Stockholm, London, Oslo, New York
Investor in Spotify, Trustpilot, Avito, Stepstone, Tobii and iZettle
Focus on consumer and software
15
NZVIII
NZVIII €300m
NZVI €130
NZVII €250m
FOUNDED
1996
OFFICES
London, New York, Oslo & Stockholm
FUNDS
8
RAISED
€1b
# OF INVESTMENTS
120+
EXITS
25+
Seed and Series A investor based in Stockholm and Palo Alto
Investor in Spotify, Vivino, Cint, iZettle, Videoplaza, Xeneta and others
Focus on consumer, software and hardware
16
TechCrunch, AltAssets
Creandum IV €180m
Creandum II €80m
Creandum III €135m
FOUNDED
2003
OFFICES
Stockholm, Berlin & Palo Alto
FUNDS
4
RAISED
€427m
# OF INVESTMENTS
65+
EXITS
25+
Seed and Series A investor based in Helsinki, Finland
Investor in mySQL, EyeEm, Citymapper, Transferwise, import.io, data loop and others
Enterprise SaaS, market networks, cloud infrastructure, big data/ ml & mobile
17
Open Ocean Closes New €100M Fund
Fund 4 €100m
Fund 3 €40m
FOUNDED
2008
OFFICES
Helsinki
FUNDS
4
RAISED
€140m
# OF INVESTMENTS
28
EXITS
5+
Seed & Series A investor based in Finland
Investor in applifier, callstat.io, supercell, wolf and NonstopGames
Health, games, mobile and general high technology sectors
18
FOUNDED
2009
OFFICES
Helsiniki
FUNDS
3
RAISED
€87m
# OF INVESTMENTS
55
EXITS
5+
Fund 3 €57m
Fund 2 €20m
Early stage Life Sciences and Tech investor based in Copenhagen, Denmark
Investor in Prezi, Dubsmash, GetYourGuide, Natural Cycles, TravelPerk, Aire and others
LPs include EIF, Industriens, ATP, Nordea Liv, Vaeksfonde and Dansk Vækstkapital
Focus on software, mobile, internet and life sciences
19
FOUNDED
2007
OFFICES
Denmark
FUNDS
4
RAISED
€189m
# OF INVESTMENTS
50
EXITS
10+
Tech €100m
Life Sciences €89m
20
Success stories
Four sectors where Nordic startups have succeeded
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FinTech
• Global payments
• Invoicing & ERP
• Checkout, POS financing
Gaming
• Social and mobile gaming
• Early adopters of new technology
• Strong design heritage
Consumer
• Success requires early global expansion
• Low touch scalable software
• Global category leaders
Enterprise
• Software development tools
• Customer support
• Many of these companies relocate
22
FinTech
CEO & Co-FounderJacob de GeerFormerly Ameibo, TradeDoubler Stockholm School of Economics
FounderChristian LanngFormerly Danish Ministry of Science Aalborg & Københavns Universitet
Linkedin Information, Crunchbase
Buy, pay and manage risk using Tradeshift next gen ERP
23
Enterprise
CEO & FounderMikkel SvaneFormerly IT Consultant, CAPUT Århus Købmandsskole & Sorbonne
$632m IPO
Linkedin Information, Crunchbase
Customer experience, support, and relationship building platform
Co-Founder & CTOMichael WideniusFormerly TCX Datakonsult, Tranor Teknillinen korkeakoulu-Tekniska
Acquired for $1b
The world’s most popular open source database
24
Gaming
CEO & FounderIlkka PaananenFormerly Digital Chocolate, SUMEA Korkeakoulu-Tekniska högskolan
CEO & Co-FounderRiccardo ZacconiFormerly uDate, BCG, Benchmark, Spray Network
LinkedIn Information, Crunchbase, Apax Poised to Score 10,000% Gain on ‘Candy Crush’ IPO
Game development studio
25
Consumer
Jonas NordlanderFounder & CEOFormerly eBay Sweden, Tradera Maastricht, Uppsala University
Trivago, auf leisen Sohlen, LinkedIn Information, Crunchbase
Acquired for $1.2b
Russian Classifieds
Daniel EkFounderFormerly Tradera, Advertigo, μTorrent Royal Institute of Technology
Discover new music
26
Rising stars
Brand ambassador customer acquisition
Companies founded after 2014 that have raised over $3m, companies founded after 2013 that have raised over $5m, other notable
Small business invoicing solution
Fleet management Optimising waste collection
Home Automation
Games for brands
Wine ratings and reviews
Employee management software
Crowdsourcing street view and photos
Employee scheduling software
Fertility tracking made easy
Learning games
Mobile app for anglers
Wifi sharing communitySee a doctor online anytime Global sea freight market info
27
Exit values in the Nordics growing steadily for 15 years
Creandum Nordic Exit Analysis 2015
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Conclusion
The Scandinavian ecosystem is amongst the most mature
in Europe
29
Takeaways
Nordics exits have been increasing over a long
period of time
Success stories have been transcontinental, not just
Pan-European
Work life balance and flat corporate hierarchies are attractive for employees
Produces much more value per capita than anywhere
else in the EU
International participation varies across countries
The three secrets to building your startup the Swedish way
30
www.frontline.vc
@Frontline
www.northzone.com
@Northzone
31
Appendix
32
Source Links
Online Content
GP Bullhound 2015 Unicorn Report GP Bullhound 2016 Unicorn Report
The Nordic Web Northstack
Gil Dibner Slideshare Presentations Norway Startup Scene
Tech.eu Interview with iZettle Analysing Iceland’s Venture Capital Scene - The Nordic Web
Creandum Nordic Exit Analysis 2015
Data Services:
CBInsights Pitchbook
Crunchbase LinkedIn
Slide 5 - Global Champions Discretionary selection of successful companies founded, domiciled or with otherwise Nordic origins
Slide 7 - Diverse funding scene Funds in the Nordics or that primarily do business there
Slide 8 - Spectrum Notable participants by stage, discretionary selection
Slide 14 - Who to know Discretionary selection of investing partners in the Nordics
When more than 5 partners at a firm, prioritised by longest tenure
Slides 14-18 - Notable players Discretionary selection of well known investors
Slides 21-25 - Successful startups Discretionary selection of successful startups
Many startups have multiple co-founders that are not included here
Slide 25 - Rising Stars Companies founded after 2014 that have raised over $3m Companies founded after 2013 that have raised over $5m
Other notable
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Methodology
Breakdown by Country
34
0
50
100
150
200
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
Sweden Denmark Finland Norway Iceland
QUARTERLY FUNDING EX-MEGA (€100m) ROUNDS
Qua
rter
ly fu
nds r
aise
d ($
1m)
The Nordic Web, Northstack, Gil Dibner Slideshare Presentations
