SWEDEN Law and Practice Contributed by: Corinne Ekman, Mikael Nagy and Joacim Kanstedt, Gernandt & Danielsson Advokatbyrå KB
moting diversity within the start-up ecosystem, where 15% of all venture capital funding was received by female-led companies – one of the highest in Europe (according to an article pub - lished by Tech.eu in January 2025). 1.3 Key Industries Sweden, with its mature venture capital ecosys - tem and reputation as “unicorn factory” , con - tinues to foster and host a significant number of high-value start-ups, particularly in the tech - nology sector. In 2024, Swedish tech compa - nies raised close to 8.4% of all of the European tech funding, placing Sweden second in total funds raised across Europe (up from fifth place in 2023). This underscores the enduring strength and global competitiveness of Sweden’s tech- driven innovation landscape and the continued importance of this industry in Sweden. Traditional verticals such as fintech, healthtech and SaaS remained leading drivers of the Swed - ish VC activity in 2024. They were joined by a cohort of companies in climate tech, clean tech, transport and energy, which continued to attract investment despite broader macroeconomic headwinds. Emerging industries such as artificial intelligence (AI), deep tech, and sustainability are also gaining momentum, in line with the global venture trends, as well as Sweden’s strong R&D- driven innovative culture. Sweden’s innovation credentials remain robust; it ranked second in the World Intellectual Proper - ty Organisation’s (WIPO) Global Innovation Index and was among the top ten countries globally in patent filing. Deep tech – encompassing fields such as advanced computing, AI, infrastructure, energy systems and synthetic biology – continues to play an increasingly important role in the Swed -
ish venture ecosystem. These companies, often rooted in fundamental scientific or engineering breakthroughs, typically require significant capi - tal and longer development cycles before reach - ing commercialisation. Despite this, Sweden has seen sustained investor interest in deep tech, aided by the country’s world-class research infrastructure, top-tier universities, and a legacy of technological advancement. A number of Swedish venture firms have dedi - cated arms or funds focused on impact and deep tech investing, and there is a growing number of investors demonstrating higher risk tolerance in return for the potential of transformative returns. That said, a funding gap persists at the scale- up and growth stages for deep tech ventures, reflecting broader trends across Europe. Sweden’s 2023 accession to NATO and height - ened commitment to defence spending has generated increased attention to dual-use tech - nologies – those with both civilian and defence applications. While this segment is still nascent and not expected to become a primary driver of Swedish VC activity in the near term, investor appetite is clearly shifting. A growing number of Swedish dual-use start-ups have begun attract - ing early-stage capital as the national focus on defence innovation, security and strategic autonomy gains momentum. A distinction can be drawn between industries that continue to attract successive rounds of financing (such as deep tech, AI and climate tech), and those that see more frequent exits, particularly via trade sales or public listings. For example: • fintech and SaaS companies remain promi - nent among VC-backed exit activity, given
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