The Q2 Swedish funding analysis


In Q2 2016, we recorded 93 Swedish investments totalling $188.93 million

(For the first time ever, we are producing individual quarterly funding analyses for each Nordic country, to place the Swedish analysis in context, check out the Q2 2016 Nordic Funding Analysis

Given the rate that Sweden have been attracting investment over the last 12 months you would expect it to peak and level out at some point, however, Q2 did not bring us this moment.

 Instead, Sweden recorded a record quarter both in terms of the number of investments and the amount of funding raised. Q2 saw an incredible 93 Swedish companies raise capital and if the summer doesn't slow things down, we shouldn't be surprised if Q3 sees the 100+ mark breached for the first time.

Even more impressive is the fact that these 93 investments mean that halfway through the year, more Swedish companies have raised capital in 2016 (174) than in the whole of 2015 (143), which in itself was a record-breaking year for Sweden.

(Please note: To get the most accurate pulse check of the health of the Swedish investment scene we have removed Spotify's $526 million and $1 billion rounds from the 'amount' analyses)

Removing Spotify from the equation, Q2 was also the strongest for amount of capital raised that Sweden has seen in the last 12 months, with Q1 seemingly just a blot on the copy book.

Sweden contributed to nearly half of the total amount of funding that flowed into the Nordics in Q2 2016, easily maintaining its place as the capital hub of the Nordic startup scene.

Even more impressive though is the fact that nearly 6 in every 10 investments in the Nordics are currently taking place in Sweden.

The fact that this was a record quarter for capital raised is a little surprising when you look at the biggest rounds, with only Klarna's $35.4 million debt round surpassing $12.5 million, however, this is testament to the sheer number of Swedish companies that raised capital in Q2 2016.

This is further demonstrated by looking at where the investments are happening in terms of their size, with 67.74% of the investments below $3 million.

Interestingly, there are no increases in the number of investments happening at the $5 million+ mark comparing Q2 2016 to Q2 2015.

This is perhaps evidence to suggest that there has been a slight slowdown in the later larger rounds, however as the number of investments are still increasing this hasn't seemed to have affected the top number when you look at the total amount of amount per quarter.

Even still, this does serve as a signal we should continue to monitor.

In conclusion, on the surface Q2 2016 was the strongest quarter for Sweden yet, however the lack of $5 million+ rounds still serves as a concern and presents a potential bottleneck for the many Swedish startups that have raised seed rounds in the last 12 months or so and are looking to their Series A's. 

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.

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