Despite the global pandemic, records are being broken in the Finnish startup community
Last year, Finnish startups attracted a record-breaking amount of funding. The growth funding raised by domestic startup companies almost doubled compared to the previous years. The total amount invested in Finnish startups in 2020 was EUR 951 million. Foreign investments accounted for 57% of the total amount.
According to the statistics of the Finnish Venture Capital Association and Finnish Business Angels Network, the largest group of investors were venture capitalists, who invested a whopping €495 million. The amount increased by more than EUR 200 million from the previous year.
The activity of Finnish investors also increased the amount of foreign financing. Pia Santavirta, the Managing Director of the Finnish Venture Capital Association, says that “83% of foreign venture capital investments made in Finland are made in cooperation with Finnish investors.”
Finland is quickly becoming the major location in Europe for startups to begin their journey in, especially when looking at the level of interest companies in Finland have when it comes to Venture Capital and Angel funding. A total of 174 startup companies in Finland received funding from venture capitalists last year and EUR 36 million of the overall funding amount came from business angels. In addition to this, larger companies and pension funds are also investing heavily in new ventures, with their investments in startups totalling EUR 370 million.
Last year’s largest growth financing of EUR 195 million was raised by telephone manufacturer HMD Global. Varjo, a startup offering virtual and mixed reality solutions, also secured a significant funding of EUR 44 million.