Analysis: August's investments

The first couple of weeks of August started REALLY slowly, however, once people properly returned from their holidays the funding announcements began to flood in, resulting in August being the third highest month for investments in 2016 so far.

In the context of calendar years, August has always been a strong month for investment, but even so, there is still a significant increase year on year to report, although it should be noted that the year on year growth from 2015 was slightly less than July's. 

The growth in capital year on year was less impressive, however it should be recognised that August 2015 included $67 million for iZettle, whereas the highest funding round in August 2016 was Samlino's $22.5 million.

As was alluded to in the introduction, August was a good month in the context of the year and represented the first rise in investments since May. However, what is clear to see when looking at the below graphic is that our prediction of investments levelling out for a while looks to be accurate.

Sweden, Denmark and Iceland all had strong months, Finland still hasn't really kicked on this year, while Norway continue to struggle to match the pace they set at the beginning of the year.

There were just three funding rounds above $10 million+ rounds in August, as the majority of investments happened at the $1-3 million stage. It should be noted that all three of the largest rounds occured in Denmark.

August was a strong month for health startups, as VR and AR startups also continue to attract an increasing amount of interest from investors. 

Similar to July, nearly 1 in 3 investments in the Nordics contained an International investor in August.

A strong August has now given Q3 a chance to be a stronger quarter for investment than Q4 2015, but despite this, unless September sees 59+ investments Q3 still looks set to be the slowest quarter of 2016. 

In the tech world, things move fast and companies are born anywhere in the world. I’m able to have an ear to the ground with The Nordic Web - the content is fresh, local, and of high quality, which is exactly what you need as a seed investor.

In fact, it’s through Neil Murray’s newsletter that I first heard about Mapillary. Several months later, I was fortunate to lead our firm’s investment in the Company to help drive the creation of a crowdsourced visual representation of our world
— Nathan Benaich, Playfair Capital