With the first half of the year coming to a close, there has been a sense that while there has been no funding slowdown in the Nordics in terms of the numbers of investments, perhaps there has been fewer larger rounds than before.
In order to get a macro view of this assumption, we've compared the 10 largest rounds of H1 2016 to the 10 largest rounds in H1 2014 and 2015.
- There's only been 5 rounds $20M+ in H1 2016 compared to 7 in H1 2015.
- There's only been 2 rounds $40M+ in H1 2016 compared to 4 in H1 2015.
- The median of the 10 largest rounds is also slightly down from $22.5 million in 2015 to $21.1 million in 2016.
- Finnish companies (dark blue) have been raising bigger rounds in 2016 than in previous H1's
- Swedish companies (yellow) are making up less and less of the biggest rounds
It's very dangerous to draw any meaningful conclusions from this, however it certainly does give a good feel for how later-stage capital in the Nordics has been faring so far this year. And while there may have been fewer $20M+ and $40M+ rounds compared to H1 of last year, the difference isn't significant enough for it not to be rectified by the end of the year (when we look at the year as a whole). In saying that, I would say that there is enough to suggest that the larger rounds are slightly down compared to H1 2015.
However, the most interesting discovery was not the size of the rounds themselves, but where they are coming from, and in particular Sweden. It's hard to say whether the drop off in the percentage of the largest rounds that Swedish companies represent is due to the other countries becoming increasingly capable of raising larger capital or a lack of Swedish companies doing so in H1 2016. In truth, it's probably a bit of both, and while there is no question that early-stage money is flowing into Sweden faster than ever, it has slowed down at the later stages, as it has across the region in H1.