Following the world-class success of Klarna and Spotify, the Nordic startup ecosystem is now valued at $552 billion — 16 times its worth a decade ago, according to Dealroom data. In 2024 alone, Maria 01, the region’s largest startup hub, saw its portfolio companies earn over €1 billion, with an impressive 40% securing early-stage funding. This growth is further underscored by Nordic startups attracting $8.2 billion in VC funding in 2024 and already $388M in 2025, with international investors contributing two-thirds of this capital.
Dealroom data positions the Nordics as the world’s most impact-focused region. 38% of all startup funding goes to impact startups, compared to 22% for Europe and less than 10% for the US and Asia. As the region has evolved into a global innovation hub, growing from 9 unicorns in 2014 to 82 in 2024, Tech Funding News spoke with key players in the Nordic market.
Collaboration over competition: How do Nordic governments support emerging startups?
The Nordic governments’ commitment to innovation and entrepreneurship has created fertile ground for startups, positioning the region as a global leader in sustainable and digital innovation. For instance, Nordic Innovation funds projects that promote sustainable entrepreneurship and innovation across the Nordic countries, while the Nordic Culture Foundation offers up to DKK 500,000 grants for cross-regional collaborative projects.
Mikko Paananen, founder and CEO of Aisti, which raised €29M at a valuation of €104M in Series A from Voima Ventures, Maki.vc, and Valve Ventures in December 2024, told TFN: “The Nordic ecosystem fosters innovation in sustainable construction and materials by encouraging collaboration between startups, academia, and established industries. Access to specialised funding and grants aimed at cleantech further accelerates growth.”
Along these lines, Nordic Science Investments (NSI) recently launched as the first fund in the Nordics dedicated to creating significant spinouts, focusing on the earliest phases of commercial development. There’s also a growing emphasis on collaborative platforms, such as Zefyron’s Academia Platform, which connects corporations, investors, and startups with academic research. Fever Energy CEO Klas Johansson stated: “Living in a place so connected to nature like Sweden is a constant reminder of what’s worth protecting. The region has a strong network of impact-focused VCs, including one that was an early supporter of Fever.”
Jonas Nyvang, CEO and co-founder of STILFOLD, supported this vision: “The collaborative culture in the Nordics allows startups like ours to form partnerships with academic institutions like Linköping University and KTH, R&D labs like RICE, and forward-thinking players like Polestar and Volvo. The strong focus on export support has also allowed us to access global markets more effectively through Business Sweden.”
Sustainability emerges as a key pillar
Sustainability is the key pillar of the Nordic innovation scene, shaping innovation, investment, and growth across the region. Finland, Sweden, and Denmark ranked in the top three positions in the 2024 SDG Index, distinguished by their leadership in cutting carbon emissions and ambitious targets for carbon neutrality.
Interestingly, impact funding for climate tech has been increasing since 2016, with energy remaining the top-funded sector, attracting over $1.2 billion in 2024. Louise Gauffin, CEO of Arkion, which secured $4M from Antlet and Neptiina Invest in July 2024, told TFN: “The Nordic region is a global leader in sustainability, and that ethos has been a driving force for our startup from the very beginning. Sustainability isn’t just a buzzword here — it’s deeply ingrained in the culture.”
Sympower told TFN: “In Sweden, we see three main energy flexibility trends. First is the rapid growth of BESS and renewable energy capacities. Second, the development of attractive commercial and industrial sectors, such as data centres, in combination with an increase in the electrification of industries. Finally, the saturation of primary reserve markets (FCR-D) decreases prices.”
Juha Riippi, co-founder and CEO of Quancsient, which received €5.2M from First Fellow Partners, Crowberry Capital, and Maki.vc, added: “Finland, in particular, fosters a culture where companies actively seek sustainable innovations. This environment has pushed us to develop cutting-edge technology and ensure it serves a broader purpose—helping industries worldwide transition to more energy-efficient and environmentally friendly processes.”
Digitalisation also takes the lead across the region
In digitalisation, the Nordics are leading the way. Speaking specifically, Nordic companies have 10-15% higher adoption rates of digital technologies than their European counterparts. This high level of digital maturity creates a culture where the population expects high-quality digital user experiences, driving innovation across sectors.
Francisco Roque, CEO and founder of Nortech AI, which landed €2.5M from Earlybird Venture Capital and Indico Capital Partners in 2023, shared: “The region has a well-established digital infrastructure supported by high internet availability, and industries are willing to modernise and digitalise. Regulatory pressure to run operations more efficiently in Europe and the Nordics is not just tied to profits or the bottom line.”
In a conversation with TFN, Fredrik Rönnlund, CEO of Leadoo, which SALESmanago acquired in November 2024, communicated: “Finland, for instance, boasts a broadband internet penetration rate of 97%, with high-speed access even in rural areas, thanks to its legal framework treating broadband as a basic right. Sweden mirrors this, with fibre optic networks available to 96% of households and one of Europe’s highest fixed high-speed broadband subscription rates.”
Karolina Ling-Vannerus from Circulated added: “Generally, the Swedish funding ecosystem tends to be more conservative and metrics-focused than other markets. There’s less emphasis on moonshot ideas and more attention to immediate business fundamentals. We see smaller funding rounds, lower valuations, and a more cautious approach overall.”
Interestingly enough, the Nordics ecosystem, mainly its approach to sustainability, is a determinant for Irish startups to expand internationally. Viktor Heide, Senior Market Advisor for Enterprise Ireland, told TFN: “Irish startups have successfully aligned their offerings with the Nordics’ strong emphasis on sustainability. For example, data-driven companies have provided climate-smart solutions like safer seabed inspections for the Offshore Wind sector and environmental studies in the Baltic Sea.
Heide continued, ” Irish fintech firms have helped Nordic banks streamline onboarding processes and align with ESG goals. This alignment with sustainability objectives has enabled Irish companies to form strategic partnerships and gain a competitive edge in the Nordic market.”
Plot twist: Deep tech takes centre stage
While sustainability remains a pillar of Nordic innovation, more startups are now focusing on deep tech. Nordic Science Investments recently launched a €60 million fund aimed explicitly at propelling research-based deep tech across the Nordics. At the same time, the EIF committed DKK 185 million to PSV Hafnium, Denmark’s first venture fund dedicated solely to deep tech.
Norway now invests 38% of its total VC funding in deep tech startups, followed closely by Finland at 37%. This aligns with recent new funds raised in Finland. Maki.vc has launched its third fund of €100M to drive deep tech and brand-driven startups in the Nordics, while Voima Ventures closed €100M+ Fund III, focused on supporting early-stage science and deep tech startups across the Nordic and Baltic regions.
The shift toward deep tech is also evident in funding trends. In 2024, Nordic startups secured a record $2.4 billion for deep tech innovation, with Stegra grabbing 550M, Veevt snapping $150M, and Heart Aerospace landing $107M. While it’s too early to judge for 2025, Hycamite TCD Technologies already announced the round of $45.4M, while TactoTek secured $5.2M.
Riippi underlined: “The growing global interest in quantum computing and recent developments in the computer-aided engineering market have also brought increased attention to our field [deep tech]. For example, significant acquisitions and innovations in simulation technologies have highlighted this industry’s transformative potential.”
Looking to the future, the Nordic region appears poised for even greater achievements in deep tech. While sustainability remains a core value, focusing on frontier technologies suggests a new chapter in the Nordic success story — one where environmental consciousness meets technological innovation.
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