SWEDEN Trends and Developments Contributed by: Corinne Ekman, Mikael Nagy and Joacim Kanstedt, Gernandt & Danielsson Advokatbyrå KB
Introduction Sweden, long recognised as the Nordic region’s most active and mature venture capital ecosys - tem, is home to more than 4,700 venture capi - tal funded start-ups which raised over EUR2.4 billion in VC investments in 2024 (according to dealroom.co). Sweden is also the birthplace of more than 40 unicorns, including Skype, Klarna, Spotify and iZettle. The Swedish ecosystem also benefits from a snowball effect as former found - ers and employees of successful unicorns have founded multiple new start-ups such as Neko Health, a preventative healthcare technology company, co-founded by Daniel Ek (Spotify). Klarna co-founder Niklas Adalberth, is the co- founder of Norrsken VC, which is currently the largest early-stage generalist impact fund in Europe. As a cornerstone of the Nordic economy and a nation celebrated for its entrepreneurial spirit, Sweden’s business environment is distinguished by its political stability, vigorous legal framework, and unwavering commitment to sustainabil - ity and innovation. These elements, along with Sweden’s thriving tech sector, a rapidly grow - ing health tech industry, and an upcoming clean tech and deep tech industry, position the country as a prominent hub for venture capital activity. In recent years, there has been a significant surge in investment directed towards start-ups that prioritise sustainability and digital transfor - mation in Sweden, mirroring global trends that emphasise environmental responsibility and technological advancement. Looking forward, investors can expect a promising pipeline of opportunities in the Swedish market, notably in impact sectors such as technology (in particular clean tech), renewable energy and health inno - vation, while at the same time being tasked with navigating an evolving Swedish (and European)
regulatory landscape. This landscape includes the new Swedish foreign direct investment (FDI) screening process that was implemented in December 2023 and compliance with various EU regulations, such as CSDR and DORA. The Swedish Venture Capital Market The Swedish venture capital market is a vibrant ecosystem. The market comprises several key players that drive innovation and support start- ups, including public investors, incubators, angel investors and, of course, the venture capi - tal funds. Public investors Public investors, including government agen - cies like Almi Invest, which is Sweden’s most active start-up investor, and Vinnova, which is an innovation agency with a mission to strengthen Sweden’s innovative capacity and contribute to sustainable growth, play a vital role in the Swedish VC landscape. They provide funding and foster a supportive environment, enhanc - ing the attractiveness of the market for start- ups. The Swedish government (eg, through the Swedish Agency for Economic and Regional Growth ( Tillväxtverket ) and the Swedish Energy Agency ( Energimyndigheten )) has regularly pro - vided companies with large amounts of state aid (the most recent examples being Northvolt and Stegra (formerly H2 Green Steel)). The Swedish state also maintains its role as an active inves - tor in the Swedish venture capital landscape by providing both equity and debt financing to vari - ous investees, through government-controlled funds, such as Industrifonden, which backs early-stage technology and life science compa - nies with international potential. Incubators Incubators are essential in nurturing early-stage start-ups by offering mentorship, resources
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