Throughout 2024, byFounders kept a close eye on early-stage funding in the Nordics and Baltics, tracking pre-seed to Series A rounds. This year, we partnered with Crunchbase to streamline data collection and expand our analysis. The results are in, and they reveal some interesting trends across the region.
Nordic startups secure more funding but fewer deals
Startups across the New Nordics (Nordic countries Denmark, Sweden, Norway, Finland, and Iceland, as well as Baltic countries Estonia, Lithuania, and Latvia) raised a total of €1.18 billion this year, marking a 6% increase from 2023’s €1.12 billion. However, deal activity dipped slightly, with 217 rounds compared to 227 last year. Sweden continued to lead in total funding with €455 million raised, but Denmark is catching up, posting a 15% increase to €309 million. Finland followed with €225 million, while Estonia saw a steep decline in deal count, dropping to 17 rounds from 30 in 2023.
Funding ranges: stable medians, widening spread
Round sizes are becoming more varied, but median amounts have remained steady: €1 million at pre-seed, €3 million at seed, and €10 million at Series A. Despite this stability, the range of funding amounts has widened, with pre-seed rounds going from €0.3 million to over €10 million, and Series A rounds fluctuating between €3 million and €93 million.
Energy and climate take center stage
Energy and climate startups led the way, raising €347 million, thanks to major rounds from companies like Syre (€93 million) and Flower (€44 million). The techbio and bio sectors came in next with €125 million, followed by health at €82 million. In terms of deal volume, energy and climate and fintech led with over 20 rounds each, while B2B businesses accounted for 83% of all deals.
Impact startups on the rise
One of the most notable trends this year was the surge in impact-driven startups, which raised €650 million, making up 55% of total funding — up from €520 million in 2023. This growth was driven by significant deals in the energy and climate, techbio and bio, and health sectors. The proportion of impact-focused investments increased to 38% of all rounds, compared to 35% in 2023.
Global investors stay, but with caution
External investors have maintained a strong presence, participating in 52% of rounds, slightly down from 55% last year. Meanwhile, non-European investors were involved in 13% of rounds, down from 15%, indicating sustained but selective global interest.
Experience matters: VCs favor repeat founders
VCs are showing a clear preference for experienced founders, with 43% of rounds in 2024 going to teams with at least one repeat founder — up from 37% last year. This reinforces the appeal of entrepreneurial track records in the current market.
Faster growth, earlier funding
Startups are securing funding earlier in their lifecycle. The median age at seed stage has dropped to 3 years from 3.2 years in 2023, while Series A startups are now raising at 4.2 years, down from 5.6 years. This trend suggests that companies are gaining traction faster, or that investors are becoming more comfortable backing early-stage startups.
Beyond SaaS: capital shifts to real defensibility
Overall, the New Nordics early-stage VC market has found a rhythm, with steady investment volumes and round sizes. However, there is a noticeable shift in focus away from traditional SaaS towards sectors like energy, techbio, and deeptech, where defensible moats such as IP and market complexity play a critical role.
AI is reshaping investment dynamics by lowering entry barriers in software and unlocking new opportunities in complex industries. As a result, investors are becoming more selective, focusing on companies with strong defensibility.
Tougher road from seed to Series A
Despite a stable funding environment, the road from seed to Series A is getting tougher, with fewer startups making the leap compared to the 2020/2021 cohort. While non-European investors have slightly pulled back, top-tier startups continue to attract significant international backing.
Rising competition amongst VCs: big rounds for top players
Competition for the best startups remains fierce. The most promising companies are still able to secure substantial rounds, with seed rounds often exceeding €8 million and Series A rounds surpassing €30 million.
Conclusion
The early-stage funding landscape in the New Nordics has evolved significantly, with a shift towards more defensible, AI-driven sectors and a heightened focus on quality over quantity. Despite a slight pullback from global investors, the region’s top startups continue to secure impressive funding, underscoring the growing maturity and resilience of the ecosystem.
Download the full Shape of New Nordics 2024 report.
Methodology
To be included in the dataset, rounds must meet the following criteria:
- Backed by VCs or independent corporate VC funds
- Fall under pre-seed, seed, or Series A stages
- The company must be headquartered in a Nordic or Baltic country
- A minimum funding amount of €300,000 (excluding undisclosed rounds)
- The round must have been announced within the analyzed year
Rounds were excluded if they were labeled as “Venture – Series Unknown,” lacked a verified lead investor, or were identified as bridge/extension rounds. Any missing information on founders was manually researched to ensure data accuracy.
