Venture Capital in the Nordic Region

Despite representing only 4% of Europe's overall population, the Nordic countries are responsible for a considerable portion of venture capital investments.

However, Norway’s venture capital landscape has experienced a period of relative inactivity. The nation’s substantial revenue derived from oil resources has contributed to the establishment of one of the world’s largest sovereign wealth funds and a comprehensive social welfare system.

While this provides stability, it has also resulted in a smaller number of tech entrepreneurs driven by necessity. This situation is evolving, however.

Emerging Trends and Notable Investments

Successful firms such as Northzone and Creandum have achieved significant returns through early investments in companies like Spotify and Klarna. Consequently, Norway is now aligning itself with other prominent European tech centers.

Recent surveys indicate growing interest in several key areas, including e-commerce, blockchain and crypto technologies, healthtech, the energy sector, mobility solutions, and climate-focused innovations.

Notable investment examples include Fairown, Kahoot, Spacemaker, Cognite, Pexip, PortalOne, Dignio, Speiz, Plaace, Glint Solar, variable.co, and Nomono.

Local investment firms typically allocate between 50% and 90% of their funds to domestic startups. However, as one investor noted, they actively monitor deal flow across all Nordic nations.

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Positive Outlook and Future Growth

There is increasing optimism regarding a greater emphasis on mental health and wellness from organizations, media outlets, and governmental bodies.

The successful distribution of the COVID-19 vaccine, the increasing value of Bitcoin, and the change in leadership in the United States were also widely welcomed.

Positive indicators, such as revenue growth within existing portfolios, successful exits, and initial public offerings (IPOs), suggest a strengthening recovery.

One investor described Norway as “becoming a major hub,” noting the accelerating influx of both scale-ups and international capital.

Survey Respondents

The following individuals contributed to our survey:

• Sean Percival, managing partner, Spring Capital
• Espen Malmo, founding partner, Skyfall Ventures
• Kjetil Holmefjord, partner, StartupLab
• Anne Solhaug Tutar, partner, Antler
• Daniel Holth Larsen, principal, Investinor
• Magne Uppman, managing partner, SNÖ Ventures

Sean Percival, Spring Capital – Managing Partner Insights

Generally, e-commerce represents a particularly exciting area for investment currently.

Fairown constitutes the most recent and compelling addition to our investment portfolio.

Within the industry, we are keen to observe further development in martech, identifying it as a currently somewhat overlooked opportunity.

We prioritize investments in businesses that demonstrate resilience, not merely surviving the COVID-19 pandemic, but actively benefiting from the conditions it has created.

Challenges and Opportunities in Norway

While Norway showcases numerous sustainability-focused companies, proven revenue growth remains a challenge for many.

Our investment strategy allocates approximately 50% to opportunities within Norway and 50% to the broader Nordic and Baltic regions.

Norway possesses a strong track record in the development of video technology.

Investors should recognize Norway’s strength in the B2B sector, coupled with a notable focus on Sustainable Development Goals (SDG).

Remote Work and Regional Shifts

Norway has proven relatively resilient to the impacts of the pandemic, suggesting Oslo will likely maintain its position as the premier location for company formation.

Despite this, I have personally relocated to a smaller village and do not anticipate returning to Oslo.

COVID-19's Impact on Investment

Post-COVID, e-commerce in Norway has experienced significant growth, contrasting with its previously weaker performance.

Our portfolio’s emphasis on SaaS has provided a degree of stability throughout the pandemic.

Consequently, our primary guidance to founders centers on minimizing churn rates to ensure survival.

Positive Momentum and Emerging Trends

We are witnessing encouraging signs of revenue growth and improved retention within portions of our portfolio, particularly among our e-commerce SaaS companies.

Furthermore, our recent investment in the Bitcoin exchange, MiraiEx, has yielded positive results.

Sources of Optimism

The recent surge in Bitcoin’s value, alongside the emergence of new open banking solutions, demonstrates continued innovation within the financial sector.

A reduction in friction is becoming a defining characteristic of modern financial systems.

We aim to spotlight innovative companies, such as Iterate, a company builder that remains relatively unknown but recently achieved a successful exit with Porterbuddy.

Concluding Thoughts

Norway is experiencing accelerated growth, rapidly establishing itself as a significant hub for scale-ups and attracting increasing international capital, as evidenced by recent investments from firms like SoftBank and Founders Fund.

Espen Malmo, Founding Partner, Skyfall Ventures

Regarding general investment trends, what areas currently capture your attention?
Skyfall Ventures concentrates on software businesses, marketplace models, and hardware ventures that incorporate a consistent software revenue stream. We are particularly enthusiastic about the blockchain and cryptocurrency landscape. Having been involved with and invested in crypto since 2012, our team possesses a long-standing interest in this evolving industry.

We’ve made investments in two promising companies within this sector: Nansen.ai, a blockchain analytics platform, and MiraiEx, a cryptocurrency exchange. Furthermore, we are keen on the potential of embedded and social commerce to invigorate the more independent segment of the e-commerce market in the coming years. Outshifter, a company within our portfolio, is strategically positioned to capitalize on this emerging trend.

Recent Exciting Investment

Could you highlight your most recent and compelling investment?
Selecting a single favorite is challenging, given our enthusiasm for all our portfolio companies, but Nomono stands out as particularly exciting. Nomono delivers a combined hardware and software solution designed for capturing and intelligently processing voice recordings and spatial audio.

This innovative solution empowers podcasters to edit their recordings effortlessly, effectively providing a digital audio technician at their fingertips.

Overlooked Opportunities & Desired Startups

Are there specific startups you’d like to see emerge in the industry, or are there currently undervalued opportunities?
Pinpointing truly overlooked areas is difficult, but bioinformatics may be somewhat undervalued within Norway, though its global recognition is growing. We also observe that the strong B2B SaaS focus of many venture capital firms can create unnecessary hurdles for hardware companies and those employing a bundled business model.

Despite this, combining hardware revenues with recurring software income can yield exceptional results, driven by high order values and robust customer retention.

Investment Criteria

What key characteristics do you seek in your next investment, generally speaking?
We prioritize investing in technically proficient founders who are tackling significant challenges within markets poised for disruption. Typically, we prefer companies that have developed a prototype or beta version of their solution and demonstrated some initial market acceptance.

Saturated & Risky Areas

Which sectors appear oversaturated or too competitive for new startups? What types of products or services cause concern?
Micromobility and telemedicine currently seem highly crowded, and we anticipate that the existing market leaders in these areas will ultimately prevail. Entering these spaces as a new startup at this time would likely prove exceedingly difficult.

Local vs. Global Investment Focus

To what extent do you concentrate on investments within your local ecosystem versus broader startup hubs? Is it more than 50%? Less?
We operate with a Nordic investment mandate, but our primary focus remains on Norway. As a Norwegian pre-seed/seed fund, we leverage our unique competitive insights, established network, and brand recognition within the country.

Therefore, over 50% of our investments are made in Norway, although we actively evaluate opportunities across all Nordic nations.

Regional Industry Outlook

Which industries in your city and region appear best positioned for long-term success, and which face challenges? Which companies and founders are you particularly impressed by?
Norway boasts a strong history in the video conferencing and audio technology sectors. Following Cisco’s acquisition of Tandberg, a leading video conferencing company, for $3.3 billion in 2010, the Video Valley area near Oslo has consistently produced successful companies.

Examples include Acano (acquired by Cisco for $700 million), Pexip (publicly traded, currently valued at $1.4 billion), and Huddly (publicly traded, valued at $0.5 billion). Within our portfolio, both Nomono and Oivi were founded by serial entrepreneurs with proven track records from these successful Video Valley companies.

Additionally, Norway leads the world in electric vehicle adoption per capita, with over 50% of new car purchases being electric. This creates a favorable environment for startups capitalizing on the EV revolution and the broader green technology movement. Easee, an EV home charger company, is one to watch.

Advice for External Investors

How should investors from other cities assess the investment climate and opportunities in your city?
Norway offers access to a highly skilled and educated workforce proficient in English, and company valuations are generally lower than those seen in the U.S. or even Sweden. We believe Norway presents a compelling investment opportunity, and we anticipate that all Nordic countries will continue to outperform expectations in the years ahead.

The Rise of Remote Work & Distributed Teams

Do you foresee an increase in founders originating from outside major cities, driven by the pandemic, remote work trends, and a desire for alternative lifestyles?
Yes, the growing acceptance of remote work will democratize the startup ecosystem globally. We anticipate a relative slowdown in growth within traditional hubs like Silicon Valley, Beijing, London, and Berlin, compared to a relative increase in companies formed and managed “in the cloud.”

Nansen.ai, a company in our portfolio, exemplifies this trend, operating as a fully distributed team from day one.

Impact of COVID-19 on Investment Strategy

Which industry segments have been negatively impacted by COVID-19, and what opportunities have emerged for startups during these unprecedented times?
We intentionally avoid investing in sectors directly harmed by the pandemic, which has proven beneficial.

How has COVID-19 altered your investment approach? What are the primary concerns of the founders in your portfolio? What guidance are you providing to your portfolio companies?
In many ways, COVID-19 has positively impacted our investment activity, as we have significant investments in companies focused on remote work, home delivery, e-commerce, and cryptocurrencies. Technology appears to be the winning sector during this pandemic, and we expect this trend to continue.

Are you observing positive indicators, such as revenue growth or improved retention rates, within your portfolio as companies adapt to the pandemic?
As previously mentioned, many of our portfolio companies are actually exceeding expectations during the COVID-19 pandemic.

Sources of Optimism

What recent event has inspired hope, whether professionally, personally, or both?
The decline in local infection rates and the rollout of COVID-19 vaccines are encouraging. Additionally, the departure of Trump from the Oval Office is a positive development. I believe maintaining four more years with his divisive rhetoric on Twitter would have been unsustainable.

Local Movers & Shakers

Who are the key individuals driving success in your local startup ecosystem – investors, founders, lawyers, designers, or growth experts – that outsiders may not be aware of?
Johan Brand, co-founder of Kahoot and now an angel investor, is a prominent figure.

Kjetil Holmefjord, Partner at StartupLab

Regarding general investment trends, what areas currently generate the most enthusiasm for you? The investment scope is not limited to specific sectors. However, a personal interest lies within the realm of climate-related ventures.

Could you share details about your most recent and compelling investment? The most recently publicized investment is in Variable.

Are there particular types of startups you'd like to see emerge within the industry that are currently lacking? What opportunities are presently underestimated? What key attributes do you seek in prospective investments? We prioritize ventures demonstrating a positive impact, possessing a nimble and efficient team, and offering the potential for substantial returns.

To what extent does your investment focus remain within your local ecosystem compared to other startup centers, or a broader geographical range? Is it more or less than 50%? Our investment strategy is entirely focused on Norway, representing 100% of our activity.

Within your city and region, which industries appear best positioned for long-term success, and which face challenges? Which companies, whether within your portfolio or not, and which founders inspire you? The video, health, and climate sectors demonstrate significant potential.

What guidance would you offer to investors in other cities considering the investment landscape and opportunities within your city? The investment climate is consistently improving.

Do you anticipate a notable increase in founders originating from areas outside major metropolitan centers in the coming years? Will established startup hubs experience a decline in talent due to the pandemic and the growing appeal of remote work? An increase is expected, though perhaps not a dramatic surge.

Within the industry segments you invest in, which appear most vulnerable or susceptible to changes in consumer and business behavior resulting from COVID-19? What potential avenues can startups explore during these unprecedented circumstances? The situation remains uncertain at this time.

How has the COVID-19 pandemic influenced your investment approach? What are the primary concerns expressed by the founders within your portfolio? What advice are you currently providing to these startups? Increased international competition for investment opportunities has been observed.

Are you witnessing positive indicators, such as revenue growth or improved retention rates, within your portfolio companies as they adapt to the challenges posed by the pandemic? Affirmative, positive trends are becoming apparent.

Can you share a recent event or development that has instilled a sense of optimism, whether professionally, personally, or a combination of both? The advancements in vaccine development have been a source of encouragement.

Anne Solhaug Tutar, Partner at Antler

Regarding investment trends, what currently excites you?
Our firm concentrates on technology-driven businesses and maintains an industry-agnostic approach. However, within Oslo, we prioritize startups operating in the energy, real estate, and transportation sectors.

Could you highlight a recent, particularly promising investment?
Speiz, Plaace, and Glint Solar represent a few noteworthy examples from our portfolio.

What types of startups are you hoping to encounter, but are currently scarce? What opportunities are being overlooked?
We are consistently drawn to ventures that streamline processes and address genuine needs. Frequently, the most successful companies originate from founders who have personally experienced an inefficiency and are driven to resolve it. These individuals demonstrate unwavering dedication to understanding their customer base. We anticipate significant advancements stemming from decentralized finance and the emergence of a truly globalized economy, facilitated by innovative technologies that transcend borders.

What key attributes do you seek in potential investments?
The paramount consideration for any investment is a robust and cohesive co-founder team. Beyond this, we look for a thoroughly validated business concept and model, scalability potential, demonstrable traction – evidenced by rapid week-over-week growth – and a focus on solving authentic, rather than contrived, problems.

Are there areas that appear oversaturated, or too competitive for new entrants? What products or services cause concern?
The past decade has been characterized by incremental improvements. However, the next 20 years promise substantial breakthroughs and transformative technologies. Many existing, minor-enhancement solutions will be superseded by innovations that fundamentally alter how we live, work, and interact.

To what extent is your investment focus directed towards your local ecosystem versus broader startup hubs? Is it more than 50%? Less?
While we possess the capacity to invest globally, the Oslo office predominantly focuses on companies established within the local area. Approximately 90% of our investments are in locally-based startups.

Which industries in your city and region appear poised for long-term success, or conversely, face challenges? Which companies and founders are particularly inspiring?
Our investment priorities in Norway reflect our belief in the disruptive potential of the energy, property, and mobility sectors, areas where Norway possesses a distinct competitive advantage.

What advice would you offer to investors considering the investment climate and opportunities in your city?
Startups based in Oslo generally present a more cost-effective investment opportunity compared to those in other global locations. Investors capable of identifying exceptional founders can secure valuable investments in Norway. Simultaneously, Norwegian founders could benefit from increased engagement with investors possessing an international perspective. Oslo’s investor and accelerator ecosystem is expanding rapidly, fostering an environment conducive to the development of innovative companies.

Do you foresee an increase in founders originating from outside major cities in the coming years, potentially driven by pandemic-related shifts and the appeal of remote work?
We are observing two concurrent trends: an increase in available talent and heightened uncertainty among potential founders regarding taking the entrepreneurial leap. However, we haven’t yet identified a correlation between these trends and specific geographic locations.

Which industry segments within your investment portfolio appear vulnerable to shifts in consumer and business behavior resulting from COVID-19? What opportunities might startups capitalize on during this period?
It’s generally inadvisable to base entirely new business ventures solely on opportunities arising from COVID-19. Rather, the pandemic can accelerate the launch or growth of some businesses while simultaneously hindering the progress of others.

How has COVID-19 influenced your investment strategy? What are the primary concerns of the founders within your portfolio? What guidance are you providing to your portfolio companies?
Our investment approach remains consistent, and substantial capital remains available for deployment in Norway. Our portfolio companies have benefited from significant government funding initiatives, which is greatly appreciated. We consistently advise our startups to maintain manageable burn rates during this period of uncertainty and to strategically plan their fundraising efforts. Furthermore, agility and a lean operational approach are more critical than ever. Founders who can effectively navigate uncertainty are well-positioned to thrive in the current environment!

Daniel Holth Larsen, Principal at Investinor

Regarding general investment trends, what areas currently generate the most enthusiasm?
We are particularly interested in opportunities surrounding resource efficiency, advancements in healthier lifestyles, the evolving internet of behaviors, and innovations in how individuals work and learn.

Could you share details about your most recent and compelling investment?
Our latest exciting investment is in Dignio, a company operating within the SaaS and medtech sectors.

Are there any specific types of startups you are hoping to encounter within the industry that are currently lacking? What overlooked opportunities exist today?
We believe there's significant potential in forestry technology. While agriculture receives considerable attention, forestry is often overlooked. This represents a substantial market opportunity, aligns with Sustainable Development Goals, and is propelled by prevailing trends like increased use of wood in construction.

What key characteristics define your ideal next investment, generally speaking?
We typically seek ventures demonstrating proven scalability within a large, global market, coupled with a founding team that is both capable and insightful.

Which sectors appear either overly competitive or too challenging for new startups to enter at this time? What types of products or services cause you concern?

1. We anticipate increased difficulty for startups in the consumer fintech space in the coming years. Established banks and financial institutions possess competitive advantages through their extensive customer bases and resource access, and are actively investing in this area through acquisitions and internal development.
2. Beyond specific products, we are cautious about enterprise solutions that lack broad integration across an organization. Services limited to a single department, such as marketing tools used solely by the marketing team, may face challenges, particularly in the current economic climate. Securing visibility with C-suite executives and broader departmental adoption is crucial for long-term survival.

To what extent is your investment focus directed towards your local ecosystem versus other startup hubs? Is it more than 50%? Less?
Over 50% of our investments are concentrated within Norway, where we are the largest and most active venture capital firm. In 2020 alone, we completed 16 new direct investments, over 60 follow-on investments, facilitated four IPOs, made six investments in other venture funds, and achieved two complete exits.

Looking ahead, which industries in your city and region appear best positioned for long-term success, and which may struggle? Can you highlight any companies, within or outside your portfolio, and their founders that you find particularly promising?
The Norwegian ecosystem is poised for continued growth and increasing international relevance, particularly in the realm of software, specifically B2B software. This is fueled by:

1. Strong adoption and utilization of technology by the government, institutions, and businesses.
2. A low-risk environment for career transitions, facilitating talent flow between established companies and startups.
3. Robust support and financing initiatives from organizations like Innovation Norway and various venture funds.
4. Excellent access to global markets through EU networks and foreign investment.

We believe Norway has a distinct advantage in subsectors such as proptech, energy, healthcare, and education. We are particularly impressed by Kahoot, Cognite, Dignio (a portfolio company), Xeneta (portfolio), Gelato, Play Magnus (portfolio), and reMarkable.

What advice would you offer to investors in other cities considering the investment climate and opportunities in your city?

1. A transparent and ethical business environment, characterized by honesty and minimal corruption.
2. A high level of innovation and numerous investment opportunities.
3. A contented population, fostering productive and motivated founders and employees.
4. Supportive policies and regulations governing business operations, IPOs, and other key processes.
5. The absence of language barriers.
6. Significant support from the government, institutions, and the local business community.

Do you foresee an increase in founders originating from areas outside major cities in the coming years? Could pandemic-related concerns and the rise of remote work lead to a decline in startup activity in traditional hubs?
It’s possible, but not certain. Cities will likely remain the primary locations for startups because (1) major corporations are not typically located in rural areas, and startup founders and employees often come from and recruit from these larger organizations; and (2) cities offer greater access to networks and information. While remote work is currently prevalent, geographical proximity remains a significant factor. This shift may occur in the long term as corporations embrace remote recruitment, but it’s unlikely to happen immediately.

Which industry segments within your investment portfolio appear most vulnerable or exposed to potential changes in consumer and business behavior due to COVID-19? What opportunities might startups be able to capitalize on during these unprecedented times?
The oil and gas sector has seen declining attractiveness even before COVID-19, and the crisis has only accelerated the transition towards sustainability. We have limited new investments in this area over the past three years, though we still hold some portfolio companies focused on specific technologies for the oil and gas industries. Startups can find opportunities through cross-industry partnerships, and we are witnessing numerous examples of this. Software companies that are thriving in the current market are also well-positioned to build strong, sustainable cultures and attract talent from affected industries like travel, aviation, oil and gas, retail, and hospitality.

How has COVID-19 influenced your investment strategy? What are the primary concerns expressed by the founders in your portfolio? What guidance are you currently providing to startups within your portfolio?
Our investment strategy has not been significantly altered, as most of our portfolio companies are performing well. Founders are primarily focused on the mental wellbeing of their employees. We advise CEOs to prioritize vision and goals, company culture, teamwork, and collective effort.

Are you observing positive indicators, such as revenue growth, customer retention, or other momentum, within your portfolio as companies adapt to the pandemic?
Yes, last year was a record year for us in terms of exits, IPOs, and gross IRR within the portfolio. Over 80% of our invested capital is allocated to software, hardware, and healthcare, and the majority of our companies are thriving. We see very few experiencing significant negative impacts.

Can you share a recent experience or observation that has instilled optimism in you? This could be professional, personal, or a combination of both.
I am personally doing well, but I have been encouraged by:

1. The recognition our exceptional team members and founders are receiving.
2. The stabilization of unemployment rates and the return of people to work.
3. The increased emphasis on mental health and wellbeing from organizations, the media, and the government.

Who are the key individuals driving success in your local startup ecosystem – investors, founders, lawyers, designers, growth experts, and others – who deserve greater recognition?
Several individuals stand out:
Kremena Tosheva (SNÖ Ventures, investor), Karen Dolva (No Isolation, founder CEO), Frida Rustøen (Idékapital, investor), Ann-Tove Kongsnes (Investinor, investor), Trond Riiber Knudsen (TRK, investor), Patrick Sandahl (Investinor, investor), Bente Sollid Storehaug (chairperson), Birger Magnus (chairperson), Erik Langaker (chairperson, investor), Anders Kvåle (Arkwright, entrepreneur, investor), Mathilde Tuv Kverneland (Arkwright X, investor), Dilan Mizrakli Landgraff (Antler, investor), Jacob Tveraabak (entrepreneur, investor), Remi Dramstad (Selmer, lawyer), Martin Schütt (Askeladden, founder/investor), Christian Sagstad (Thommessen, lawyer), Jan Grønbech (growth expert), Nils Thommessen (ex-lawyer, investor and board person), Eilert Hanoa (CEO of Kahoot, investor), Tom Even Mortensen (investor, growth expert), Birgitte Villmo (Investinor, investor), Bente Loe (Alliance Ventures, investor).

Magne Uppman, Managing Partner, SNÖ Ventures

Regarding investment trends, what areas currently generate the most enthusiasm?
Our investment scope encompasses all digital technologies, though we’ve recently increased our focus on sectors like health technology, the future of work, and technologies related to events and creative industries.

Could you detail your most recent and compelling investment?
We recently participated in a follow-on funding round for PortalOne, a pioneering company establishing the world’s first hybrid gaming platform. PortalOne uniquely blends gaming experiences with live shows and broader entertainment offerings, creating a highly immersive and novel experience. Originating in Oslo, they are preparing for a U.S. launch.

Are there any specific startups you’d like to see emerge within the industry, or are there currently overlooked opportunities?
The continued evolution of social integration across diverse sectors – such as social fitness and social commerce – remains a compelling area. Specifically, replicating the quality of connections formed in physical settings within the digital realm, leveraging the accessibility and reach of digital platforms, is a key focus.
Furthermore, we believe substantial progress is needed in the privacy sector, particularly given the increasing vulnerability of data and third-party access to personal information.

What characteristics define your ideal investment prospect?
We prioritize founder teams that demonstrate both brilliance and ambition. Based in Norway, we seek companies with the potential to rapidly expand into larger, ideally global, markets. Norway and the Nordic region provide excellent testing grounds, boasting a digitally advanced and highly trusting population, but are often too small to support the growth ambitions of most tech companies.

Which sectors are becoming overly competitive, or present insurmountable barriers to entry for new startups? What products or services cause you concern?
We observe that most sectors quickly become saturated and generally avoid companies offering only incremental improvements in crowded spaces. However, we don’t automatically dismiss competition if a business possesses transformative technology or unique, previously unseen solutions.

To what extent is your investment strategy focused on your local ecosystem versus broader startup hubs? Is it more than 50% local?
Our investments have, thus far, been exclusively within Norwegian companies. However, our forthcoming fund will expand our reach to encompass the entire Nordic region. We anticipate approximately 50% of our investments will remain in Norway, with the remaining 50% distributed across Sweden, Denmark, Finland, and Iceland.

What industries within your city and region appear best positioned for long-term success, and which face challenges? Which companies, within or outside your portfolio, and founders do you admire?
Oslo and Norway are home to a diverse range of promising companies. Kahoot, Spacemaker, Cognite, and Pexip have led the way, with emerging companies like Memory, Tibber, PortalOne, reMarkable, and others quickly gaining traction. We also note a trend of established industrial companies in Norway transitioning into technology, exemplified by a skilled workforce shifting from the oil and gas sector, and companies like Cognite emerging from this transformation. Norway also possesses unique strengths in ocean technology, renewable energy, agriculture, and shipping, all areas poised for exciting tech-driven startups.

What advice would you offer to investors considering the investment climate and opportunities in your city?
Oslo presents a robust foundation and growing momentum in the tech sector. However, a shortage of local venture capital firms creates a funding gap, particularly at the Series A stage, which simultaneously presents opportunities for investors willing to engage with the ecosystem. Investors should recognize the fragmentation of the Nordic region and extend their efforts beyond Stockholm to include other Nordic hubs for successful investment strategies.

Do you foresee an increase in founders relocating from major cities to smaller geographies in the coming years, driven by the pandemic, remote work trends, and concerns about urban hubs?
The prevalence of remote work is undoubtedly increasing. Several of our portfolio companies, such as Confrere – a video meeting and conferencing platform focused on healthcare – operate entirely with remote employees. However, we also recognize the benefits of companies being closely connected to a startup hub, fostering learning, inspiration, and networking opportunities. We hope to see the development of more mini-hubs across the country, interconnected and collaborating effectively, both locally, nationally, and internationally.

Which industry segments within your investment portfolio appear most vulnerable to shifts in consumer and business behavior due to COVID-19? What opportunities are emerging for startups during these unprecedented times?
Sectors like business travel, retail, and hospitality currently appear weaker. Conversely, exciting opportunities are arising in event technology, gaming, work tools, efficiency solutions, health tech, and sustainability. A key challenge lies in discerning which trends accelerated by the pandemic will prove temporary versus permanent.

How has COVID-19 altered your investment strategy? What are the primary concerns expressed by founders within your portfolio? What guidance are you providing to your portfolio companies?
Certain areas have experienced accelerated development, influencing our investment focus. The primary concerns voiced by our portfolio companies center around potential impacts on B2B sales and a more challenging investment climate. We’ve advised some companies to secure extended runways, while others, benefiting from pandemic-driven shifts, have been encouraged to accelerate their growth.

Are you observing positive indicators – revenue growth, customer retention, or other momentum – within your portfolio as companies adapt to the pandemic?
The initial two months presented challenges for some portfolio companies, but conditions subsequently improved, and most have largely returned to their pre-pandemic revenue growth trajectories.

Can you share a recent experience that has instilled optimism in you?
At SNÖ, we frequently draw parallels between the challenges faced by founders and the proud Norwegian heritage of polar exploration. The resilience and adaptability demonstrated by our founders throughout the past year reinforce the validity of this comparison, highlighting their spirit of exploration and perseverance.

Who are the key individuals driving success within the local startup ecosystem – investors, founders, legal professionals, designers, growth experts, and others – who deserve greater recognition?
The Oslo startup scene has benefited greatly from the contributions of numerous individuals, including Rolf Assev, Alexander Woxen, Per Einar Dybvik, Tor Bækkelund, Kjetil Holmefjord at StartupLab, Ingar Bentsen and Hans Christian Bjørne at TheFactory, Anniken Fjelberg at 657, Anders Mjåset at Mesh, Heidi Aven at SHE, Knut Wien and Maja Adriaensen at Startup Norway, Lucas H. Weldeghebriel and Per-Ivar Nikolaisen at Shifter, and many others. These individuals are all deserving of recognition for their dedication and impact.

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