Finnish Venture Capital and Private Equity Market Overview 2022 (Finnish Venture Capital Association (Paaomasijoittajat))

Summary

• Finnish startups raised nearly €1.2 billion in investments in 2021, breaking the previous year's record of €0.95 billion.p.3
• Domestic and foreign venture capital investors deployed a combined €743 million into Finnish startups in 2021, with foreign VC funding surging 123% to €553 million.p.3
• Foreign investors provided 74% of the total financing raised by Finnish startup companies in 2021.p.3
• Capital under management by Finnish buyout and growth funds reached €6.5 billion in 2021, including €3 billion in dry powder.p.4
• Finnish venture capital fund managers held €1.95 billion in assets under management in 2021, of which €935 million (48%) was available for future investments.p.12
• Domestic and foreign private equity investors invested a total of €4.9 billion in Finnish growth companies over the five-year period 2017–2021.p.4

Key insights

1. According to Invest Europe statistics, Finnish startups raised the highest volume of venture capital relative to GDP in Europe for the fourth consecutive year.p.3
2. Seed-stage VC funding into Finnish startups increased by 137% in 2021 to reach €45 million across 67 companies.p.8
3. Domestic Finnish VC funds directed 36% of their invested capital (€105 million) to foreign portfolio companies across 73 targets in 2021.p.11
4. The average size of Finnish VC funds stands at €54 million, compared to an average of over €100 million across Europe.p.12
5. Finnish venture capital funds established between 2009 and 2015 generated an average annual return of 25%, with 53% ranking in the top quartile in Europe.p.13
6. Private-equity-backed companies in Finland grew their revenue nine times faster and their headcount five times faster than peer companies during their first three years of ownership.p.6
7. Employment pension companies formed the largest institutional investor group in Finnish buyout funds, providing 36% of funds raised in 2021.p.17