The Nordics will attract more venture capital than London within three years.

Despite the recent hyperbole (including two TechCrunch articles in the space of a month) about how London is attracting record amounts of venture capital, their funding story pales in comparison to the rate that Nordic startups are currently raising investment at.


After a record breaking Q1, London startups are on course to surpass $2B for the first time this year, with a 66% growth rate currently projected based on Q1, which would see them raise a total in the region of $2.25B. (These projections and the figures below are tracked by London & Partners, the mayor of London’s business development group).

The Nordics

After raising a total of $846M in 2014, Nordic startups have essentially matched that amount already, having raised $844.5M so far this calendar year. This means that at the current rate, Nordic startups would be on course to raise $2Bn in Venture Capital in 2015, which would be an incredible growth rate of 136% compared to 2014.

In comparison

At the current rate:

London would raise approximately $2.25B in Venture Capital in 2015, and $3.75B in 2016.

The Nordics would raise approximately $2B in Venture Capital in 2015, and $4.72B in 2016.

At an adjusted rate:

I am of course not under the impression that a 136% growth rate in VC is possible for the Nordics to maintain, in fact, I don't even believe it will even be close to that at the end of the year. I would consider a 75% growth rate to be much more likely, meaning The Nordics would go on to raise around $1.5B in Venture Capital in 2015. I'm also of the opinion that London will not maintain their 66% growth rate, and in all likelihood we will see that fall to around 50% meaning that London startups will attract just north of $2B in 2015, still a comfortable $500M more than Nordic startups will.

Still, if we use these more conservative (and in my opinion more realistic) growth rates to project the next couple of years then Nordic startups will go on to attract more Venture Capital than London based startups in 2017 and look set to become Europe's dominant hub for attracting investment within three years, quite remarkable really seeing as though the Nordics continue to go under the radar in terms of the general perception of where the majority of VC in Europe is heading, with most people considering London and Berlin the investment hubs of Europe. If these projections do hold true, then we would likely see less Nordic startups heading to Berlin and London, with more capital available at home, which in turn would likely see an even stronger local ecosystem.