Sweden’s start-up ecosystem doubled in value in 2021, with impact investments taking center stage according to recent Sweden Tech Ecosystem: Report 2021 by business Sweden with partners.
Swedish start-ups continued to break records in 2021, with 7.8 billion euros in VC investments – more than double the year before. VC investments were dominated by impact start-ups, raising more than half of the year’s funding, as shown in a new report.
The value of Swedish start-ups doubled in 2021, to 239 billion Euro, Europe’s highest valuation per capita. Thereby, Sweden joins the ranks as the fourth most valued start-up hub in Europe, following the UK, Germany, and the Netherlands. The growth among impact companies, a 20-times increase in enterprise value since 2017, is also Europe’s highest.
The report in short:
- 7.8 billion euro in VC investments were made in Swedish start-ups in 2021, a 2.4x increase since 2020.
- More than half (4.3 billion euro) was raised by impact start-ups, companies that target at least one of the UN Sustainability Goals (SDGs).
- Sweden is the number one European ecosystem based on VC investments in impact companies.
- The growth in investments was dominated by later rounds, with mega-rounds (over 100 million euro) counting for more than 70%.
- Early rounds were dominated by local investors (55%) while later rounds were dominated by international capital (67%), mainly from other European investors.
- Up until 2021, 35 unicorns have been founded in Sweden. More than 20 future unicorns are currently active in the ecosystem.
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