TLDR:
- Icelandic VC Frumtak Ventures closes $87M fund to back AI and deeptech startups
- The fund is oversubscribed and focuses on industries like ocean tech, healthcare, energy, and gender equality
Icelandic early-stage investor Frumtak Ventures has successfully closed an $87 million fourth fund, known as Frumtak IV, in a single close. The fund, which was oversubscribed, follows the previous $57 million Frumtak III fund from 2021. This development comes at a time when Icelandic startups are gaining international attention for their innovative solutions, resulting in the country’s startup ecosystem boasting the highest invested capital per capita in the Nordic region.
The fund’s focus has been on backing B2B SaaS startups at the seed or Series A stage. With the latest Fund IV, Frumtak Ventures aims to capitalize on opportunities at the intersection of software, AI, and deeptech, particularly in industries that leverage Iceland’s historical strengths such as ocean tech, logistics, healthcare, travel, energy, climate, and gender equality.
Headquartered in Reykjavík, Frumtak Ventures is led by serial entrepreneur and managing partner Svana Gunnarsdottir, along with general partners Ásthildur Otharsdóttir and Andri Heiðar Kristinsson. The VC firm’s portfolio includes successful investments in companies like Sidekick Health and Controlant, among others.
Frumtak Ventures’ co-founder Svana Gunnarsdóttir expressed pride in the portfolio companies’ success and highlighted the unique support the firm offers to ambitious founders. The successful fundraising for Frumtak IV positions the firm to continue supporting Icelandic startups and contribute to the Nordic ecosystem’s success.
With its strategic focus on AI and deeptech, Frumtak Ventures’ latest fundraise is expected to further elevate Iceland’s startup ecosystem and foster innovation in key industries. The firm’s track record and emphasis on leveraging Iceland’s strengths bode well for continued success and growth in the region.
