Venture capital funding to startups in the Nordic region slumped by more than a third last year as investors became more selective.
(Bloomberg) — Venture capital funding to startups in the Nordic region slumped by more than a third last year as investors became more selective.
Companies in the region raised $11.7 billion in 2022, down 36% from an all-time high in 2021, according to a report from Finnish VC firm NGP Capital, Silicon Valley Bank and Dealroom.
Despite the slump, the Nordic startup ecosystem was still worth more than $500 billion.
As with the rest of Europe, the region experienced a “noticeable pullback” when it came to late-stage “megarounds,” according to the report.
Companies in the early-stage phase held up better, raising $3.4 billion, down just 6% from 2021.
That’s as investors began to focus on cash flow and profitability amid an increase in borrowing costs globally and a historic slowdown in initial public offerings.
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