SWEDEN Trends and Developments Contributed by: Corinne Ekman, Mikael Nagy and Joacim Kanstedt, Gernandt & Danielsson Advokatbyrå KB
and access to networks (including angel inves - tors and venture capital funds). Sweden has a world-class innovation support system and several prominent incubators, such as Stock - holm Innovation & Growth (STING) and Uppsala Innovation Centre, which have successfully sup - ported numerous start-ups in their early stages. This ecosystem plays a pivotal role in foster - ing technological advancements, collaboration between academia and industry, and contributes significantly to the growth of the Swedish ven - ture capital market. Angel investors Angel investors are vital in the Swedish venture capital landscape, providing early-stage fund - ing and support to start-ups. Networks like the Swedish Business Angels Network (SBAN) con - nect start-ups with high net worth individuals who offer both capital and valuable expertise. The community of angel investors plays a crucial role in bridging the funding gap for start-ups that may not yet be ready for venture capital invest - ments. Venture capital funds Venture capital funds are the backbone of the Swedish venture capital market, providing sig - nificant capital to start-ups. The Swedish funds vary in size and focus, with some specialising in specific sectors and others being generalist impact funds. Notable VC funds in Sweden, such as EQT Ventures, Northzone and Creandum, have been early investors and made substantial investments in successful start-ups, contributing to the vibrant Swedish start-up ecosystem. Sweden is also the home of several impact funds, which are targeted towards generating a positive environmental and/or social impact, while at the same time generating a financial return on its investments. This aligns well with
Sweden’s broader ESG focus and aims towards a sustainable and viable future. Such funds include Norrsken VC, the largest early-stage generalist impact fund in Europe, Industrifonden, which focuses on early-stage technology and life science companies with international potential, and Summa Equity, investing in start-ups aligned with the UN Sustainable Development Goals. Venture Capital Market Trends Sweden, long recognised as the Nordic region’s most active venture capital ecosystem, expe - rienced a cautious start in 2024 and a decline in funding by 41.7 % compared to 2023. Deal activity remained significantly below record lev - els seen in 2021–2022 (according to PitchBook data). However, signs of stabilisation and resur - gence began to emerge in the second half of 2024 and have been continuing into 2025. Key sectors such as technology (in particular clean tech), renewable energy and financial services have led this revival, fuelled by resilient funda- mentals and a renewed sense of confidence among investors. There has been a clear trend among investors favouring early-stage compa - nies that are less capital-intensive and require fewer capital injections, particularly in sectors like fintech and software as a service (Saas). However, despite the significant capital needs typically associated with deep tech companies before they reach the commercial phase and generate meaningful revenue, there was an increase in both the number and size of invest - ments in this segment during 2024. As we transition into 2025, a vibrant start-up ecosystem, sustained interest from internation - al investors, and an uptick in defence spending are creating opportunities for the venture capital landscape in Sweden. Despite challenges from ongoing global trade tensions and currency fluc - tuations, Sweden’s open and export-oriented
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