Impact-startups raise almost 75% of all venture capital in Sweden
Image Unsplash: Charlesdeluviocharlesdeluvio
A recent report from the Sweden Tech Ecosystem database, a joint initiative by Business Sweden, Vinnova, The Swedish Agency for Economic and Regional Growth, The Swedish Institute, and Swedish Incubators and Science Parks (SISP), highlights the ongoing commitment to making ecosystem data universally accessible.
The report introduces the digital platform - ‘Swedish Tech Ecosystem’- an online hub for showcasing activities within the nation’s innovative Ecosystem. The platform is expected to foster connections between investors and startups, facilitate business dialogues among companies, and offer media outlets a wealth of compelling stories. Additionally, it provides a space for talents to explore prospects and companies to express their needs.
Despite economic uncertainty in 2023 worldwide, the report indicates that Swedish startups remained resilient by securing investments totaling €4.7B. Interestingly, impact startups accounted for 75 percent or three-quarters of all venture capital investment – positioning Sweden as Europe’s second-largest contributor in this sector.With an aggregate valuation of €239B, the Swedish startup scene has seen its value double over half a decade and given birth to 41 unicorn firms - reinforcing Sweden’s standing as a significant player on the international tech stage.
The report also points out an emerging trend within the Swedish Ecosystem: successful unicorn alums are branching out as founders of new startups – creating what can be described as a snowball effect.
The economic contribution from these startups is significant; they’ve created about 138 000 jobs globally, with 79 000 based in Sweden itself, excluding top-tier firms and unicorns – these startup entities are responsible for creating new local jobs at an impressive rate of 96%.
In light of these findings, despite global uncertainties, it is evident that Sweden continues to attract investors’ talent along with new deals due to its high rankings on global innovation indices. The report underscores the commitment to providing world-class conditions for startups to thrive in Sweden.
Read the full report on this link.