TLDR:
- Finnish VCs raised €507M in 2023 despite struggles in the startup market.
- Foreign investments in Finnish startups decreased by 58% while domestic investments only decreased by 17%.
Finnish venture capital firms had a successful fundraising year in 2023, raising a total of €507 million in new capital for funds. This was in contrast to the struggles faced by startups in the country, with funding dropping by half compared to the previous year. The decline in startup funding was not only attributed to VC hesitancy, but also to decreases in angel and corporate investments. Foreign entities showed less interest in funding Finnish startups, with a 58% decrease in investments, while domestic investors experienced a smaller 17% decrease.
Despite the challenges faced by startups, Finnish venture capital funds like Lifeline Ventures, Voima Ventures, IPR.VC, Gorilla Capital, and 3TS managed to maintain fundraising levels close to records. New players also entered the market with the introduction of funds from Greencode Ventures, Kvanted, and Failup Ventures. Family offices of wealthy Finnish families also played a significant role in funding, contributing €167 million to the funds raised in 2023.
Jussi Sainiemi, Chair of FVCA’s Venture Capital Committee, emphasized the importance of Finland’s solid foundation for financing domestic startups and the proactive measures taken by startups to enhance capital efficiency amidst the challenging market conditions.
