Within the realm of European startup ecosystems, Sweden — largely Stockholm — ranks very near the behemoths of London, Paris and Berlin. And with 10 million folks, the nation definitely punches above its weight, having produced unicorns resembling Spotify and Klarna, to call solely two.
Consequently, the eight buyers we surveyed are characteristically bullish concerning the future, regardless of a pandemic technique that turned extra restrictive within the second half of final yr.
Sweden’s initially laissez-faire strategy to controlling COVID-19 may need helped its tech ecosystem trip out the uncertainty. “Sweden is extra open and is forward of the pandemic curve, so extra individuals are coming right here than the opposite method round,” mentioned Jacob Key, founding associate with Luminar Ventures.
A number of folks we spoke to mentioned they noticed inexperienced shoots concerning income progress and retention of their portfolio firms as founders tailored to the pandemic. Areas which can be benefitting embrace digital well being and distant work for apparent causes, however given Sweden’s power in fintech and gaming, these sectors are each effectively positioned to thrive.
As shoppers turn out to be extra desirous of sustainability, accountable procuring, inexperienced journey and plant-based meals options “will probably contribute to a surge in firms on this house,” mentioned Sofia Dolfe of Index Ventures.
Oversaturated areas are media/adtech and wellness/health apps.
Among the developments these buyers are enthusiastic about embrace deep tech, AI, machine studying, healthcare/medtech, industrial IoT, vitality storage and energy-efficient energy technology, robotics, clever manufacturing and additive manufacturing.
“I feel there may be numerous fascinating stuff popping out of Stockholm and accelerating with all current success tales,” mentioned VNV World’s Bjorn von Sivers.
Right here’s who we spoke to:
- Jacob Key, founding associate, Luminar Ventures
- Bjorn von Sivers, associate, VNV Global
- Ashley Lundström, associate, EQT Ventures
- Ted Persson, associate, EQT Ventures
- Sofia Dolfe, principal, Index Ventures
- Staffan Helgesson, associate, Creandum
- Tanya Horowitz, associate, Butterfly Ventures
- Sanna Westman, principal, Creandum
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Jacob Key, founding associate, Luminar Ventures
What developments are you most enthusiastic about investing in, typically?
AI automation, democratization, SMB SaaS.
What’s your newest, most fun funding?
Hiberworld.
Are there startups that you simply want you’ll see within the business however don’t? What are some neglected alternatives proper now?
Actual-time sustainability well being trackers for each shoppers and companies.
What are you on the lookout for in your subsequent funding, usually?
Tremendous devoted and proficient workforce going after main issues.
Which areas are both oversaturated or can be too exhausting to compete in at this level for a brand new startup? What different sorts of merchandise/providers are you cautious or involved about?
Adtech firms, shopper lending firms, e-commerce retail, area of interest issues.
How a lot are you targeted on investing in your native ecosystem versus different startup hubs (or in every single place) usually? Greater than 50%? Much less?
100% within the broader Swedish ecosystem.
Which industries in your metropolis and area appear effectively positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
Gaming, fintech, utilized AI, safety, e-health. Mindler, Insurello, Hiberworld, Greenely, Normative, Marcus Janback, Tanmoy Bari.
How ought to buyers in different cities take into consideration the general funding local weather and alternatives in your metropolis?
Sturdy momentum, increasingly more serial founders and skilled founders, sturdy broader ecosystem, product and tech-led founders with a worldwide view.
Do you anticipate to see a surge in additional founders coming from geographies exterior main cities within the years to return, with startup hubs shedding folks as a result of pandemic and lingering issues, plus the attraction of distant work?
Sweden is extra open and is forward of the pandemic curve so extra folks coming right here than the opposite method round.
Which business segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise conduct due to COVID-19? What are the alternatives startups could possibly faucet into throughout these unprecedented occasions?
Journey, mobility, nice-to-have SaaS, recruiting. They need to concentrate on work, occasion, journey 2.0 safety, sustainability, e-health and leisure.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
Probably not. Deal with resourceful execution, digital-first gross sales, prolong runway. Largest fear is a a lot cooler funding local weather.
Are you seeing “inexperienced shoots” concerning income progress, retention or different momentum in your portfolio as they adapt to the pandemic?
E-health, gaming, distant work, fintech.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
Founders appear much more devoted, digital transformation occurs a lot quicker.
Bjorn von Sivers, associate, VNV World
What developments are you most enthusiastic about investing in, typically?
Enterprise fashions with sturdy community results. Mobility and micromobility providers, Digital well being, on-line marketplaces.
What’s your newest, most fun funding?
SWVL, Babylon Well being, Voi Expertise.
Are there startups that you simply want you’ll see within the business however don’t? What are some neglected alternatives proper now?
Startups addressing local weather change, both oblique or direct. I feel it is going to develop immensely over the approaching years.
What are you on the lookout for in your subsequent funding, usually?
Enterprise fashions with sturdy community results.
How a lot are you targeted on investing in your native ecosystem versus different startup hubs (or in every single place) usually? Greater than 50%? Much less?
VNV World has a worldwide mandate. Roughly 10% of the portfolio is Sweden/Stockholm based mostly.
Which industries in your metropolis and area appear effectively positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
Any shopper service popping out of Stockholm eco system. Within the portfolio I might spotlight Voi Expertise and Fredrik Hjelm (micromobility) and Grace Well being based by Estelle Westling and Thérèse Mannheimer that’s constructing a digital well being clinic for girls in rising markets.
How ought to buyers in different cities take into consideration the general funding local weather and alternatives in your metropolis?
I feel there may be numerous fascinating stuff popping out of Stockholm and accelerating with all current success tales. Spotify, iZettle, and so on.
Do you anticipate to see a surge in additional founders coming from geographies exterior main cities within the years to return, with startup hubs shedding folks as a result of pandemic and lingering issues, plus the attraction of distant work?
It should in all probability enhance a bit, however not considerably.
Which business segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise conduct due to COVID-19? What are the alternatives startups could possibly faucet into throughout these unprecedented occasions?
Worldwide journey nonetheless has numerous uncertainty and low visibility. Digital well being and micromobility is defiantly seeing unprecedented demand.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
Probably not impacted our technique. I might say founders suppose loads concerning the funding local weather and the best way to finest plan on this decrease visibility setting.
Are you seeing “inexperienced shoots” concerning income progress, retention or different momentum in your portfolio as they adapt to the pandemic?
Sure, all throughout the portfolio.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
The quick restoration in our mobility companies, which basically noticed exercise drop considerably in late March/early April and has rebounded strongly since Might
Ashley Lundström, associate, EQT Ventures
What developments are you most enthusiastic about investing in, typically?
I’m personally enthusiastic about investing in groups fixing essential issues — those that have an effect on deprived populations, society at massive, the setting, and so on. And the thrilling half is that we’re seeing increasingly more of this — particularly from serial entrepreneurs who’ve constructed firms, possibly even had good exits and now need to dedicate their abilities to significant journeys.
What’s your newest, most fun funding?
It truly hasn’t been introduced but as we actually closed a couple of days in the past and it’s one which our AI platform Motherbrain pointed us to. It’s a kind of firms that while you hear about what they’re constructing you simply say, “Oh in fact, that’s a no brainer.” It’s a terrific instance of a product-led firm seeing sturdy natural progress from a worldwide person base and we’re chomping on the bit to begin working collectively. Previous to this, my newest most fun funding is Anyfin. Anyfin is a chief instance of the potential of Stockholm’s second technology groups, popping out of the Swedish unicorns iZettle, Klarna and Spotify. They’re a fintech constructing monetary wellness merchandise for customers who want it essentially the most. They’ve began with concentrating on rates of interest head-on through a refinancing product and are launching extra merchandise and markets with the Collection B funding elevating they secured this spring.
Are there startups that you simply want you’ll see within the business however don’t? What are some neglected alternatives proper now? What are you on the lookout for in your subsequent funding, usually?
I’m eager to see groups who mix market expertise with startup expertise. All too typically groups are both one or the opposite and I’d like to see a workforce come collectively the place one co-founder says, “I do know this downside inside-out as a result of I’ve lived it” and one other co-founder who says, “I understand how to construct and convey concepts to life.” This combo can be actually highly effective. Over and above that, I’m typically targeted on investing in groups fixing issues which can be shared by big bases — both shoppers or the lengthy tail of B2B. One should in my guide is that the product needs to be shopper grade. That is apparent for shopper (though not all the time a given), but it surely’s one thing that we’ve turn out to be non secular about in B2B too.
Which areas are both oversaturated or can be too exhausting to compete in at this level for a brand new startup? What different sorts of merchandise/providers are you cautious or involved about?
We’re within the enterprise of exceptions so I discover it exhausting to rule out a class altogether on account of competitors. That being mentioned, there are all the time sectors the place it’s tough to ascertain a winner-takes-all or winner-takes-most, for structural causes, resembling some sorts of recruiting or staffing, D2Cs or digital well being providers.
How a lot are you targeted on investing in your native ecosystem versus different startup hubs (or in every single place) usually? Greater than 50%? Much less?
Our technique is to be native with locals and we make investments broadly throughout Europe and, in particular circumstances, within the U.S. So, whereas personally my time’s spent considerably weighted towards the Nordics, greater than 50% of the businesses I work with are exterior the Nordic international locations. Motherbrain has helped us flatten geographies additional, discovering nice startups no matter the place they’re situated, and we usually spend money on nice groups exterior our native ecosystems.
Which industries in your metropolis and area appear effectively positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
There’s numerous expertise for shopper merchandise popping out of the Nordics — notably fintech in Stockholm (Tink, Anyfin, Brite), gaming in Finland (Small Big Video games, Reworks, Traplight), and a variety of merchandise out of Copenhagen together with edtech and well being tech (Eduflow, Corti). The nice engineering expertise we’ve on this area can be producing extremely sturdy tech groups — notably in Finland, resembling Varjo, Speechly and Robocorp. We’re even beginning to see some fascinating exercise in quantum computing (e.g., IQM) within the area. There are additionally some moonshot firms popping out of the Nordics that we’re enthusiastic about long run, resembling Solein, Einride, Coronary heart Aerospace and Northvolt.
How ought to buyers in different cities take into consideration the general funding local weather and alternatives in your metropolis?
The Nordic international locations proceed to punch above their weight and I’m assured that this pattern will proceed — that means the funding alternatives will likely be many. Because the ecosystems mature, the standard will proceed to enhance, which additionally speaks to this pattern over time. Traditionally, downturns have produced sturdy tech firms, so I wouldn’t be shocked if buyers are conserving a detailed eye on the area to ensure they get the possibility to again a few of the most seasoned entrepreneurs who will most definitely be on the lookout for methods to benefit from the present local weather.
Do you anticipate to see a surge in additional founders coming from geographies exterior main cities within the years to return, with startup hubs shedding folks as a result of pandemic and lingering issues, plus the attraction of distant work?
I consider we’ll see extra distant groups, completely. Nonetheless, I nonetheless suppose the hubs will likely be sturdy and essential items of the ecosystem and I don’t suppose we’ll see these cities shrinking by materials numbers. Although if folks go away the most costly cities, who may blame them? I do, nevertheless, suppose we’ll see a extra sharp pattern of groups that had been pretty native up to now, increasing to new geographies. And what could occur is that in itself will reveal new expertise swimming pools, which over the long run may create extra hubs.
Which business segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise conduct due to COVID-19? What are the alternatives startups could possibly faucet into throughout these unprecedented occasions?
Tech is in a terrific place general as a result of companies are typically both engaged on digitization, which is seeing acceleration out of COVID-19 … so tech falls clearly on the correct facet of that line, or inexperienced discipline trendy and even futuristic concepts. Of the latter, in fact, a few of these concepts are nice-to-haves, which wrestle when shoppers are dealing with robust monetary conditions, however loads are providers that we consider we’ll see understanding long run. In fact something bodily, the place the workforce isn’t capable of adapt the product rapidly, like occasions or train providers, will face non permanent dips, but when these firms had been initially betting on long-term developments, we consider that they’ll nonetheless be in good positions going ahead.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
COVID-19 hasn’t affected our technique, but it surely has helped us hold our eye on the ball by way of ensuring we stick with our technique and keep conscious of our personal runway — funds have that too! The recommendation to our founders has been the next: (1) Prolong the runway so you retain your choices open, after which (2) be as aggressive as you probably can. We’re encouraging groups to behave rapidly — each by way of making inside choices and in getting merchandise to market to check them out. Our founders’ greatest worries are uncertainties round how lengthy “this” will all final — and our recommendation right here is that they need to function as they all the time do and never look ahead to issues to alter, reasonably be ultrarelevant available in the market you’re in.
Are you seeing “inexperienced shoots” concerning income progress, retention or different momentum in your portfolio as they adapt to the pandemic?
Sure! We’ve bought a pair firms who’re rather well positioned — notably Wolt (meals supply) and the cell video games firms we’ve backed (Popcore, Reworks, Traplight, and so on.). The present local weather is very favorable for these kind of firms, and we’ve bought nice founders on the wheels who’ve been capable of benefit from the alternatives offered and who’ve seen super progress because of this.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
The efforts by the general public sector, together with healthcare suppliers, to speed up digitization has been refreshing. Sectors who’ve all too typically had loads of excuses for being sluggish and conservative have abruptly made large leaps — they usually’re happy with themselves for having completed so! This provides me hope that there will likely be new or renewed appetites whilst issues return to regular.
Every other ideas you need to share with TechCrunch readers?
The Nordic international locations have many nice examples of digital instruments utilized by most of the people to conduct their on a regular basis lives digitally. I might encourage founders and enterprise leaders to look to those examples and see if there are alternatives to construct for different geographies. Scandinavian trendsetting isn’t only for style and inside design!
Ted Persson, associate, EQT Ventures
What developments are you most enthusiastic about investing in, typically?
My primary ardour lies in backing bold groups fixing actual issues with actual know-how. So, fairly deep tech typically — the anti-thesis of “yet one more B2B SaaS firm fixing nearly the identical downside in nearly the identical method.” I’m additionally concerned with product and design-centric groups utilizing superior UX to democratize one thing that beforehand was restricted to a privileged few. Presently, I’ve been spending numerous time fascinated by and doing analysis into the way forward for the inventive industries, advertising, product design, and so on.
What’s your newest, most fun funding?
This spring, I’ve led or been concerned in 4 investments throughout quantum computing, group collaboration and two within the design and growth tooling house. None of those have been introduced but although. The final introduced investments had been Sonantic and Frontify — each very cool firms.
Are there startups that you simply want you’ll see within the business however don’t? What are some neglected alternatives proper now?
Edtech is definitely one.
What are you on the lookout for in your subsequent funding, usually?
As we’re on the lookout for outliers, it’s exhausting to generalize. However I get extra enthusiastic about firms tying to unravel exhausting issues reasonably than simply piecing collectively a couple of APIs (which anybody can do).
How a lot are you targeted on investing in your native ecosystem versus different startup hubs (or in every single place) usually? Greater than 50%? Much less?
I personally don’t have a geographical focus and revel in working with our groups throughout Europe and the world, however since I reside in Sweden, my community is barely stronger right here. Our proprietary AI platform Motherbrain additionally ensures we discover quickly rising or under-the-radar startups exterior of our native ecosystems and networks.
Which industries in your metropolis and area appear effectively positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
We’re fairly good at gaming, leisure, music and fintech within the Nordics. It’s additionally simpler to seek out actually nice designers right here than in different elements of Europe.
Do you anticipate to see a surge in additional founders coming from geographies exterior main cities within the years to return, with startup hubs shedding folks as a result of pandemic and lingering issues, plus the attraction of distant work?
Sure, for certain. It’s too early to inform, however a few portfolio firms have given up on their bodily places of work and numerous startup folks I do know are working from throughout the nation. I for certain suppose this may result in a extra worldwide local weather.
Which business segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise conduct due to COVID-19? What are the alternatives startups could possibly faucet into throughout these unprecedented occasions?
Loads has been written about this already and, identical to each different investor, we’ve spent a fair proportion of the spring mapping this out. All in all, tech is in place.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
There’s been no change in our technique. There was some preliminary confusion for apparent causes and we took a brief break to ensure our portfolio was in place to endure. Now, we’re again to regular and have made our first investments the place we haven’t met the groups bodily.
Are you seeing “inexperienced shoots” concerning income progress, retention or different momentum in your portfolio as they adapt to the pandemic?
Sure, definitely in a few areas, resembling meals supply, gaming, distant working and collaboration.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
When folks round myself, dad and mom, older family members, hastily embrace digital instruments and methods of working totally.
Sofia Dolfe, principal, Index Ventures
What developments are you most enthusiastic about investing in, typically?
I like merchandise that give folks a powerful feeling of neighborhood, of belonging to a bunch of like-minded folks, and a way of being invested in its success. Customers are so passionate concerning the product that they will’t cease themselves from recommending it to their mates, and their affinity with the model grows over time. Seek for these kind of companies typically leads me to shopper companies and marketplaces which can be customer-centric and convey communities collectively.
Are there startups that you simply want you’ll see within the business however don’t? What are some neglected alternatives proper now?
I’m to listen to about new takes on schooling in a post-COVID world by which folks could also be extra open to problem the normal methods of studying.
What are you on the lookout for in your subsequent funding, usually?
I’m on the lookout for founders who’re inspiring storytellers. A lot of constructing a enterprise is about getting everybody to return alongside for the trip, from the senior execs becoming a member of you, to the purchasers taking an opportunity on a younger but unproven enterprise, to buyers taking a leap of religion and sharing in your ambition. Founders who’re nice storytellers, are hungry and dream large from the get-go, and have the humility to know what they don’t know, will likely be in my opinion those that have the perfect probability at making it large.
Which industries in your metropolis and area appear effectively positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
Stockholm has traditionally been on the forefront of each fintech and gaming, and I do suppose these sectors are effectively positioned to thrive. Monetary providers will proceed to be reworked, and the trendy banking infrastructure within the Nordics makes this a gorgeous place to begin a fintech enterprise. As for gaming, the area has a powerful monitor file and a excessive focus of each studios and developer expertise, making it a very fertile floor for breakout successes. A more recent, fast-growing theme within the area is aware consumption. Stockholm has a protracted historical past of eco-friendliness, and the maturity of CSR, accountable procuring, inexperienced journey and plant-based meals options will probably contribute to a surge in firms on this house. I’m excited to satisfy with founders who care deeply about this endeavor.
How ought to buyers in different cities take into consideration the general funding local weather and alternatives in your metropolis?
Stockholm has confirmed itself to be a powerful tech hub, and it has most of the mandatory components for continued successes. For one, founders suppose large and world from the beginning. Sweden has a inhabitants of 10 million, and founders creating category-defining firms know that they have to enter different markets to dominate. The size of firms resembling King, Spotify and iZettle has additionally proven that success is inside attain and cultivated a way of braveness amongst aspiring entrepreneurs. Typically the world dangers underestimating the Swedes as a result of they are usually understated however because the monitor file of Sweden reveals, they overdeliver.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
A number of weeks in the past I noticed a handwritten notice within the entrance of an house constructing in Stockholm. One of many residents was providing to buy groceries, remedy and different important gadgets to these unwell or in danger within the constructing. I’m hopeful that in occasions of issue, we’re reminded of the significance of our native communities, of taking duty for others, and of how useful a easy act of kindness will be to constructing relationships.
Staffan Helgesson, associate, Creandum
What developments are you most enthusiastic about investing in, typically?
Transformation of outdated and enormous industries resembling transportation, building, actual property, and so on. Digital well being — we might want to rework present well being business.
What’s your newest, most fun funding?
Mavenoid. Automating tech assist globally. Ex-Palantir founders.
Are there startups that you simply want you’ll see within the business however don’t? What are some neglected alternatives proper now?
Insurance coverage markets haven’t but seen the wave of startups that the overall fintech business has seen.
What are you on the lookout for in your subsequent funding, usually?
Loopy bold entrepreneurs with their eyes set on disrupting a worldwide market.
Which areas are both oversaturated or can be too exhausting to compete in at this level for a brand new startup? What different sorts of merchandise/providers are you cautious or involved about?
Many shopper verticals are robust to penetrate given large tech and associated oligopoly. However each time I say that new phenomenal firms emerge. Reminiscent of Creandum’s portfolio firm Kahoot that simply listed in Oslo for $1.5 billion.
How a lot are you targeted on investing in your native ecosystem versus different startup hubs (or in every single place) usually? Greater than 50%? Much less?
Creandum invests all throughout EU. No set targets — we simply need to discover the perfect entrepreneurs.
Which industries in your metropolis and area appear effectively positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
If choosing one business we’re very enthusiastic about digital well being with Stockholm-based Firstvet and Kry/Livi. (telemedicine for people and pet house owners).
How ought to buyers in different cities take into consideration the general funding local weather and alternatives in your metropolis?
Stockholm/Nordics is a really refined ecosystem that constantly hold producing world winners regularly.
Do you anticipate to see a surge in additional founders coming from geographies exterior main cities within the years to return, with startup hubs shedding folks as a result of pandemic and lingering issues, plus the attraction of distant work?
Nice firms will more and more be constructed wherever and we as an business have to adapt. These enterprise companies adapting finest and quickest would be the winners going ahead. I foresee a second inexperienced wave, like within the 70s, the place folks will transfer out from cities and/or have a dual-home setup.
Which business segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise conduct due to COVID-19? What are the alternatives startups could possibly faucet into throughout these unprecedented occasions?
Journey and leisure clearly. However even in these industries there will likely be winners going ahead if they will trip the wave of digitizing (for instance, tickets and occasions).
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
It’s all about entry to long-term capital and monitor file. Creandum’s technique has not modified in any respect.
Are you seeing “inexperienced shoots” concerning income progress, retention or different momentum in your portfolio as they adapt to the pandemic?
Sure, particularly in digital well being.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
Closing a completely distant funding. Firm known as Meditopia — in Turkey of all locations :-).
Tanya Horowitz, associate, Butterfly Ventures
What developments are you most enthusiastic about investing in, typically?
Deep tech, AI, machine studying, healthcare/medtech, industrial IoT and associated cloud providers and communication options, Vitality storage and energy-efficient energy technology, robotics, clever manufacturing, and additive manufacturing.
What’s your newest, most fun funding?
Uute Scientific has created a pure product containing a selected combination of microbes, which will be utilized to numerous shopper merchandise. These merchandise lower the likelihood of getting immune-mediated illnesses, like bronchial asthma or Sort 1 diabetes and consequently enhance high quality of life.
Are there startups that you simply want you’ll see within the business however don’t? What are some neglected alternatives proper now?
Within the area (Nordics), wish to see extra in vitality storage, energy technology and vitality/carbon discount applied sciences. Meals tech and agtech are an space to look towards given the world’s growing inhabitants. Edtech as a result of COVID disaster.
What are you on the lookout for in your subsequent funding, usually?
We’re on the lookout for a powerful workforce with distinctive tech aimed towards a worldwide market.
Which areas are both oversaturated or can be too exhausting to compete in at this level for a brand new startup? What different sorts of merchandise/providers are you cautious or involved about?
Media/adtech except really distinctive appear to be oversaturated; additionally wellness/health apps, and so on.
How a lot are you targeted on investing in your native ecosystem versus different startup hubs (or in every single place) usually? Greater than 50%? Much less?
Finland 40%-50%, Sweden 30%+, Norway, Denmark, Iceland and Baltics remaining 20%.
Which industries in your metropolis and area appear effectively positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
Industries: Well being/medical.
How ought to buyers in different cities take into consideration the general funding local weather and alternatives in your metropolis?
I feel in Finland and the complete Nordics there may be ample alternatives to spend money on stellar groups and applied sciences which have a worldwide market. The expertise pool and assist of the startup ecosystems are high notch.
Do you anticipate to see a surge in additional founders coming from geographies exterior main cities within the years to return, with startup hubs shedding folks as a result of pandemic and lingering issues, plus the attraction of distant work?
I don’t see startup hubs shedding folks within the Nordics. I do nevertheless see founders coming from geographies exterior main cities.
Which business segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise conduct due to COVID-19? What are the alternatives startups could possibly faucet into throughout these unprecedented occasions?
Apparent is retail, eating places, service business. Additionally schooling (edtech) must be an space to essentially look into. On-line leisure (OTT), logistics (meals, items supply), and so on.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
It has solely affected it barely, we had been fortunate that we had been nearly on the finish of our funding interval and our portfolio of firms are set for this present fund classic. We’re the main seed-stage deep tech investor within the Nordics and due to this fact most of our firms have fared OK.
Are you seeing “inexperienced shoots” concerning income progress, retention or different momentum in your portfolio as they adapt to the pandemic?
Sure, a few of our portfolio has benefited from the pandemic, whereas others suffered with prospects initially however appear to be recovered now.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
We’re elevating Butterfly Ventures Fund IV and began earlier than the pandemic hit. Whereas this has slowed us down barely, our anchor and different LPs are rock strong and we as a workforce are dedicated to getting the primary shut completed ASAP to capitalize with that dry powder in early 2021. Whereas my coronary heart goes out to those that haven’t been so fortunate, personally we’ve been blessed to not have had direct tragedies associated to the pandemic … and my son is blissful and wholesome and that alone provides me hope on a regular basis.
Every other ideas you need to share with TechCrunch readers?
World LPs ought to actually discover Europe extra, particularly the Nordics!
Sanna Westman, principal, Creandum
What developments are you most enthusiastic about investing in, typically?
Properly, we sometimes say that in case you spend money on developments you’re late to the social gathering … however in fact there are some macro actions which can be thrilling and we monitor intently. For me personally digital well being is a kind of areas, it’s not new however continually creating and has in fact been additional accelerated the previous yr. One other space that’s actually fascinating are merchandise that make it easier to be a greater chief/supervisor/firm. I’m undecided the best way to productize this however there’s an enormous alternative in amplifying management. We’ve seen success with firms giving the person person superpowers (no-code instruments, productiveness instruments, and so on.) however how about serving to folks scaling themselves and their groups? Distant work has numerous advantages, however places new challenges on managers. I additionally consider we’ll see extra high quality firms battling local weather change in several methods.
What’s your newest, most fun funding?
SafetyWing — on the intersection of social safety and distant work.
Are there startups that you simply want you’ll see within the business however don’t? What are some neglected alternatives proper now?
There’s loads extra to do inside B2B commerce: marketplaces, e-commerce enablers, new methods of financing, and so on. Positive there are firms, however no method close to as many (good) ones accurately.
What are you on the lookout for in your subsequent funding, usually?
A short while to “Wow.” Options that can provide the person an instantaneous worth after which proceed so as to add to that worth they extra they use the product
Which areas are both oversaturated or can be too exhausting to compete in at this level for a brand new startup? What different sorts of merchandise/providers are you cautious or involved about?
Mobility and supply usually is kind of crowded. Additionally open-banking cost options has seen an enormous surge.
How a lot are you targeted on investing in your native ecosystem versus different startup hubs (or in every single place) usually? Greater than 50%? Much less?
The Nordics is together with DACH one of many key focus markets for Creandum, although there’s no set allocation for any sure geography. We try to again the perfect firms no matter the place they’re situated.
Which industries in your metropolis and area appear effectively positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
In comparison with different hubs there’s a very excessive product focus usually, and provided that Sweden is a small market the mindset can be worldwide from day one. I feel that makes extra of a distinction than a sure vertical. By way of thrilling firms Kive and Depict are price conserving eyes on for the very early phases. For the extra mature startups Kry and Firstvet are doing nice as early enablers of digital well being.
How ought to buyers in different cities take into consideration the general funding local weather and alternatives in your metropolis?
More and more aggressive but in addition numerous sturdy expertise.
Do you anticipate to see a surge in additional founders coming from geographies exterior main cities within the years to return, with startup hubs shedding folks as a result of pandemic and lingering issues, plus the attraction of distant work?
Even earlier than the pandemic only a few startups in Stockholm had 100% of their workforce in a single location anyway, a hybrid setup was and proceed to be quite common.
Which business segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise conduct due to COVID-19? What are the alternatives startups could possibly faucet into throughout these unprecedented occasions?
Because the fund invests with a really very long time horizon, +10 years, the short-term affect just isn’t a key concern however in fact we take into consideration the long-term results on e.g., enterprise journey. We are inclined to search for the alternatives greater than the drawbacks although, and there will likely be alternatives for brand new firms in industries which were closely impacted. It would truly show to be good timing to disrupt.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
Initially we had been cautious round runway and labored intently with the portfolio to ensure they may survive for an extended time ought to revenues decline and funding not be accessible. Summing up 2020 although, we had been lucky to look again on a yr the place many firms had overperformed and had been capable of elevate vital up rounds. Nice firms are created in all occasions and had been dedicated to seek out the perfect seed and Collection A firms.
Are you seeing “inexperienced shoots” concerning income progress, retention or different momentum in your portfolio as they adapt to the pandemic?
Positively. We’ve seen a number of examples of V-shaped restoration, with revenues bumping again above pre-COVID ranges and persevering with on that trajectory.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
The hustle and optimism amongst entrepreneurs we meet. The “unimaginable is nothing” angle is de facto inspiring.
Who’re key startup folks you see creating success regionally?
I’d say a few of the lively “keep within the background” angels/mentors which can be supporting a brand new technology resembling Joachim Hedenius (Kry, CTO) or Johan Crona. And Susanna Campbell/Cristina Stenbeck who’ve been very lively of their joint investments, typically discovering alternatives the VCs miss.
