Insights

What you need to know about the Nordic investment market in July 2020.

This is a dealflow summary for the Nordic private companies we tracked for the month of July. During July we added a total of 215 deals and 8 reports in our databases.

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Essential data-based reports

👏 Promising venture investments made in Nordic companies this summer - a top 30 list. We screened through more than 150 deals to get you up to speed with the summer's dealflow. link

👏 Interesting Nordic M&A deals from this summer. As there's economic uncertainty everywhere, the market will be more interesting for the buyers looking for good assets. We have made a M&A list from the private market with deals announced in the past couple of months. link

👏 Manufacturing startups - top of the Nordic class. The manufacturing sector is one of the most under-rated and under-invested when it comes to the potential of the tech innovation. We looked at almost 300 Nordic startups using manufacturing in their value creation process and selected 19 of the most intriguing ones. link

👏 What kind of startups from Sweden attracted early stage funding in the first half of 2020? Software developers, marketplace operators and mobile apps are the early stage startups coming stronger from Sweden in the class of H1 2020. Traditional Nordic verticals such as health and financial services remain in the investors' top preferences. link

👏 50 early stage startups from the Nordics that raised money in 2020 and you should look at. We analysed 468 investments made in Denmark, Finland, Iceland, Norway and Sweden in the first part of 2020 and compiled a list of 50 that we think are well positioned to grow. link

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Now, let's dive into the July data.

Total investment transactions in July

42 deals | $393.13M value | 7 with undisclosed data

vs.

96 deals | $326.51M value | 20 with undisclosed data [June 2020]
77 deals | $392.59M value | 16 with undisclosed data [May 2020]
98 deals | $284.23M value | 17 with undisclosed data [April 2020]
63 deals | $304.77M value | 9 with undisclosed data [March 2020]
78 deals | $292.56M value | 13 with undisclosed data [February 2020]
89 deals | $626.53M value | 21 with undisclosed data [January 2020]

vs.

78 deals | $388.88M value | 18 with undisclosed data [July 2019]

> See all the investment deals for July

 

The 5 largest investment transactions

  • Oatly (Food Industry) - $200M
  • Yubico (Hardware, Manufacturing, Security, Software Services) - $32.48M
  • VOI Technology (Mobile, Transportation) - $30M
  • MariaDB (Software Services) - $25M
  • Reapplix (Biotech) - $22.6M

> See the entire list

Investment distribution per country

  • Sweden - 16 deals
  • Denmark - 10 deals
  • Norway - 9 deals
  • Finland - 4 deals
  • Iceland - 3 deals

> See the entire macro summary

Investment distribution number

  • < $0.5M - 7 transactions (17%)
  • $0.5M - 1M - 11 transactions (26%)
  • $1M - 5M - 6 transactions (14%)
  • $5M - 10M - 3 transactions (7%)
  • $10M - 20M - 2 transaction (5%)
  • $20M - 50M - 5 transactions (12%)
  • n/a - 7 transactions (17%)
  • TOTAL - 42 transactions

> See more details

Investment distribution value

  • < $0.5M - 1.97M investment value (1%)
  • $0.5M - 1M - 7.31M investment value (2%)
  • $1M - 5M - 7.84M investment value (2%)
  • $5M - 10M - 21.94M investment value (6%)
  • $10M - 20M - 23.43M investment value (6%)
  • $20M - 50M - 130.63M investment value (33%)
  • $50M+ - 200.00M investment value (51%)
  • n/a - N/A
  • TOTAL - $393.13M investment value

> See more details

Top 5 Nordic cities by the number of investment transactions

  • Stockholm : 10 deals - Software Services (4), Health services (3), Manufacturing (2)
  • Oslo : 5 deals - Software Services (3), Manufacturing (2), Hardware (2)
  • Copenhagen : 4 deals - Software Services (2)
  • Reykjavik : 3 deals - Software Services (3), VR (2)
  • Malmö : 2 deals - Interior design (1), Software Services (1), Food Industry (1)

> See the entire list

Top 5 active verticals by the number of transactions

  • Software Services : 20 deals - $79.00M value
  • Manufacturing : 8 deals - $36.85M value
  • Mobile : 5 deals - $44.89M value
  • Health services : 5 deals - $28.73M value
  • Robotics : 4 deals - $3.11M value

> See the entire list and the industry breakdown

Active investors (min 2 transactions)

  • Vækstfonden - 5 deals
  • Almi Invest - 4 deals
  • Heartcore - 2 deals
  • Luminar Ventures - 2 deals
  • Iceland Venture Studio - 2 deals
  • Trond Riiber Knudsen - 2 deals

Number of active investors during the month: 69

> See all the active investors for the month July

Angel investors (min 2 transactions)

  • Trond Riiber Knudsen - 2 deals

Number of active investors during the month: 34

> See all the active angel investors for the month July

VC investors (min 2 transactions)

  • Vækstfonden - 5 deals
  • Heartcore - 2 deals
  • Luminar Ventures - 2 deals
  • Iceland Venture Studio - 2 deals

Number of active investors during the month: 17

> See all the active VC investors for the month July

Non-Nordic investors

  • Blackstone - 1 deal
  • Rabo Corporate Investments - 1 deal
  • Orkila Capital - 1 deal
  • GP Bullhound - 1 deal
  • SmartFin Capital - 1 deal

Number of active investors during the month: 17

> See all the non-Nordic investors for the month July

Interesting deals from July


 on demand scooter company | $30 million
 manufacturer of wave energy technology | €9 million
 mobile game developer | €8 million
 developer of a Anti-Money-Laundering (AML) software solution | $6.1 million
 SAAS of a documentation platform | NOK 60M
  operator a digital healthcare platform for preventative support | SEK 60M
 softwaretool that analyses your writing and shows you the most relevant research from millions of online publications, in seconds. | NOK 17M
 robotics manufacturer | DKK 13M
 software developer for boat monitoring | NOK 12.5M
 developer of a headless CMS SAAS for multilingual game projects | SEK 10M

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Modcam was acquired by Cisco.
Instantor was acquired by Tink.
Caia Cosmetics to get Verdane as investors in the company.

 

Investor profile: Northzone

  • Partners founder/operator/investor ratio of 0.75
  • 2 out of the 9 new companies they invested in the past 18 months are software companies active in the construction industry
  • 4 of those 9 are from the UK and 5 of them were added as part of $15M+ deals
  • the US portfolio includes a startup doing an open-source framework for blockchain-based projects founded by two Argentinians in 2015

> Read the entire profile of Northzone.

> Read other profiles of Nordic investors.

Other observations

A detailed breakdown of the types of startups from Sweden which raised rounds less than $1 million in the first part of 2020.

Name a software company from Europe which runs a fintech operation bringing in about $100M in revenue every quarter. Hint: it's from Norway!

Amazon launches in Sweden and later on in the entire region.

The European Commission confirmed that is looking to treat CBD as a narcotic drug as moves are underway to change the status of cannabidiol (CBD) from a food to a drug. I know a few Swedish investors not happy about that.

Adevinta acquired eBay’s Classifieds business unit in a $9.2B deal. Aggressive M&A was Adevinta’s growth strategy from the beginning, ever since it was demerged from Schibsted and listed in 2019. Here's a nice geo distribution of the new asset portfolio.

The Soundcloud founders made public their new startup: an e-bike subscription service named Dance. 59 euro per month all inclusive. Here's the breakdown of it.

Speaking of microbility, here's an analysis detailing the car-as-a-service vs. e-bike-as-a-service model breakdown, based on Volvo’s M service.

You know you look at an interesting deal when the bosses of EQT and Summa Equity are part of a $13 million series A round from Norway.

Speaking of which, the Zendesk founders and the H&M owner/CEO have invested in a little known producer of affordable sustainable furniture founded in Denmark in 2018.

Good podcast with David Helgason, co-founder of Unity Technologies and one of the most prolific investors from the Nordics.

Spotify launched video podcasts, enabling podcasts to include a video. Really good.

Where great marketing can take you - Oatly’s story in a thread.

EQT is pedal to the metal in Europe - just hired Carolina Brochado from Softbank to launch a growth fund positioned between Ventures and Private Equity. At the same time, EQT Venture's founder Hjalmar Winbladh announced moving away from EQT.

Zoom started selling a bundled video solution (hardware and software) as a service together with a Norwegian company it invested in.

In Iceland you can now identify yourself with the driving license straight from your phone. Really cool.

IKEA is launching vegan Swedish meatballs. The ad looks very sci-fi

Sweden to have direct daily night trains to Germany and Belgium within two years. link

Skype cofounder Toivo Annus dies at the age of 48. Life is fucking fragile, man!

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