How much U.S VC money is coming into The Nordics?

Last week it was revealed that US funding was responsible for half of all new funding in London’s tech sector in 2014, with $795.2M of $1.4bn Venture Capital invested in London's startups coming from the U.S. 

I think it's safe to say that we are all in agreement that the more money that comes from VC's based across the pond the better for the European scene. Prompted by a tweet from Mike Butcher, I decided to look at how much money from the U.S came into the Nordics in 2014.

Using our "A comprehensive guide to who is actively investing in Nordic Startups" we identified 31 (from 145) U.S based investors who invested in Nordic Startups in 2014.

With U.S based investors participating in $209.9M of the $846.44M raised, they accounted for 24.8% of the money raised in the region in 2014.

At what stage did it come?

Surprisingly, the money from the U.S comes into the region pretty early, with the majority of the money coming at Series A (52.63%), and a very encouraging 36.84% coming at Seed. Typically, EU startups need to look to the U.S for the later, and much bigger rounds, so having a U.S based investor on board at early stage looks promising for those who will look to raise those big Series B's and C's.

What's the % of U.S based money per Stage?

Overall, the % of U.S money that is contributing to Seed in the region is still fairly low with 7.45% coming from the U.S, with the majority of Seed money still coming from Nordic and EU based VC's. 24.39% of Series A raised included a U.S based investor, whereas 50% of Series C's included a U.S based investor, which, as alluded to before is to be expected as it can be a challenge to raise big B's and C's from EU based VC's.

What impact does a U.S based investor have?

Having a U.S based investor has a big impact on the size of your round, with the average seed round with a U.S based investor nearly double of the average without one. $2.21M vs $1.16M.

This difference is also apparent at Series A; $6.61M vs. $5.64M.

With such a difference in the size of rounds where a U.S based investor is present, as well as the fact that we often turn to U.S VC's for the later rounds, having U.S money is important to the growth of the regions startups. The amount that came into the region from the U.S in 2014 is not too far off the amount that London's startups raised from the U.S in 2012 ($209.9M vs $296M) so, if the Nordics follow the same trajectory then we can expect to see a lot more U.S money flooding into the region over the next couple of years.


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