Stockholm Startup Ecosystem: Insights from 8 Investors

Sweden's Startup Ecosystem: A European Powerhouse

Within the European landscape of startup ecosystems, Sweden – primarily centered around Stockholm – consistently performs near the leading hubs of London, Paris, and Berlin. Despite a population of only 10 million, the nation demonstrates significant impact.

Investor Sentiment and Pandemic Resilience

The eight investors surveyed express a generally optimistic outlook for the future, even considering the increasingly stringent pandemic control measures implemented in the latter portion of the previous year.

Sweden’s initial, relatively unrestricted approach to managing COVID-19 may have aided its tech ecosystem in navigating the period of uncertainty. Jacob Key, founding partner at Luminar Ventures, noted, “Sweden maintains a more open environment and is progressing beyond the peak of the pandemic, resulting in increased inbound movement.”

Growth Areas and Emerging Trends

Several sources indicated positive signals regarding revenue expansion and customer retention within their respective portfolios, as company founders successfully adapted to the challenges presented by the pandemic. Sectors experiencing notable benefits include digital health and remote work solutions.

Furthermore, Sweden’s established strengths in fintech and gaming position these industries for continued success. As consumer preferences shift towards sustainability, responsible consumption, eco-friendly travel, and plant-based dietary options, a corresponding increase in related companies is anticipated.

Saturated Markets

The areas of media/adtech and wellness/fitness applications are currently considered oversaturated.

Exciting Investment Areas

Investors are particularly enthusiastic about emerging trends such as deep tech, artificial intelligence (AI), machine learning, healthcare/medtech, industrial IoT, energy storage, efficient power generation, robotics, intelligent production, and additive manufacturing.

Bjorn von Sivers of VNV Global commented, “A considerable amount of innovative activity is emerging from Stockholm, and this momentum is being accelerated by recent success stories.”

Investor Perspectives

The following individuals contributed to this analysis:

• Jacob Key, founding partner, Luminar Ventures
• Bjorn von Sivers, partner, VNV Global
• Ashley Lundström, partner, EQT Ventures
• Ted Persson, partner, EQT Ventures
• Sofia Dolfe, principal, Index Ventures
• Staffan Helgesson, partner, Creandum
• Tanya Horowitz, partner, Butterfly Ventures
• Sanna Westman, principal, Creandum

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Jacob Key, Founding Partner, Luminar Ventures

Generally, I am particularly enthusiastic about investment opportunities in AI automation, the democratization of technology, and SMB SaaS solutions.

Currently, our most compelling investment is in Hiberworld.

Overlooked Opportunities and Desired Startups

We are seeking startups focused on providing real-time sustainability health tracking, catering to both individual consumers and businesses. This area appears to be significantly underrepresented at present.

When evaluating potential investments, a super dedicated and highly talented team tackling substantial challenges is paramount.

Competitive Landscape and Areas of Caution

Certain sectors are becoming increasingly saturated or pose significant competitive hurdles for new entrants. We are cautious regarding adtech companies, consumer lending ventures, e-commerce retail businesses, and solutions addressing overly niche problems.

Investment Focus: Local vs. Global

Our investment strategy is entirely concentrated within the broader Swedish ecosystem – representing 100% of our focus.

Regional Industry Outlook

Within our city and region, the gaming, fintech, applied AI, security, and e-health industries appear exceptionally well-positioned for long-term success. Companies like Mindler, Insurello, Hiberworld, Greenely, and Normative are particularly exciting, as are the founders Marcus Janback and Tanmoy Bari.

Investment Climate in Our City

Investors should recognize the strong momentum building here, alongside a growing number of serial and experienced founders. The ecosystem is robust, and we are seeing product and tech-led founders with a distinctly global perspective.

Geographical Shifts in Founder Location

Sweden is demonstrating a greater openness and has progressed beyond the peak of the pandemic's impact. Consequently, we are experiencing an influx of individuals relocating here, rather than an outflow.

Impact of COVID-19 on Industry Segments

Industries such as travel, mobility, non-essential SaaS offerings, and recruitment appear weaker and more vulnerable to shifts in consumer and business behavior resulting from COVID-19. Startups should explore opportunities in areas like work, event, and travel 2.0 security, sustainability, e-health, and entertainment.

COVID-19 and Investment Strategy

Our investment strategy has remained largely unchanged. We advise portfolio companies to prioritize resourceful execution, adopt a digital-first sales approach, and extend their financial runway. The primary concern among founders is a potential cooling of the investment climate.

Positive Momentum in the Portfolio

We are observing encouraging signs of revenue growth, improved retention rates, and overall momentum within our portfolio, particularly in the e-health, gaming, remote work, and fintech sectors.

A Source of Recent Hope

The unwavering dedication demonstrated by founders, coupled with the accelerated pace of digital transformation, has been a significant source of optimism recently.

Bjorn von Sivers, Partner at VNV Global

Generally, my investment focus centers on business models exhibiting robust network effects. I am particularly enthusiastic about opportunities within mobility and micromobility services, the expanding field of digital health, and innovative online marketplaces.

Regarding recent investments, I find SWVL, Babylon Health, and Voi Technology to be particularly compelling.

Currently, there's a noticeable gap in the market for startups directly or indirectly tackling climate change. This area presents a significant, and I believe, rapidly growing opportunity for investment.

When evaluating potential investments, a key criterion remains the presence of strong network effects within the business model.

VNV Global operates with a worldwide investment scope. Currently, around 10% of our portfolio is comprised of companies based in Sweden, specifically Stockholm.

Stockholm's Emerging Industries

The Stockholm ecosystem is producing promising consumer service ventures. Within our portfolio, Voi Technology, led by Fredrik Hjelm, in the micromobility sector, and Grace Health, founded by Estelle Westling and Thérèse Mannheimer, which is developing a digital health clinic for women in emerging markets, are particularly noteworthy.

Investors considering opportunities in Stockholm should recognize the increasing momentum fueled by recent success stories like Spotify and iZettle.

While a slight increase in founders originating from outside major cities is probable, I don’t anticipate a substantial shift away from established startup hubs.

Impact of COVID-19

The international travel industry continues to face considerable uncertainty. Conversely, both digital health and micromobility are experiencing unprecedented levels of demand.

COVID-19 has not fundamentally altered our investment strategy. However, founders within our portfolio are understandably focused on navigating the current funding landscape and planning for a period of reduced visibility.

We are observing positive indicators – “green shoots” – across the portfolio, demonstrating revenue growth, improved retention rates, and overall momentum as companies adapt to the pandemic.

The swift rebound in our mobility businesses, which experienced a significant downturn in late March and early April, and have since shown strong recovery from May onwards, has been a particularly encouraging development.

• Key Investment Areas: Network effects, mobility, digital health, online marketplaces.
• Portfolio Highlights: SWVL, Babylon Health, Voi Technology, Grace Health.
• Overlooked Opportunity: Climate change solutions.

Ashley Lundström, Partner, EQT Ventures

Regarding investment trends, what currently excites you the most?
I find myself particularly drawn to supporting teams dedicated to resolving significant challenges – those impacting underserved communities, society as a whole, and the environment. Encouragingly, we are witnessing an increase in such ventures, notably from experienced entrepreneurs who, having achieved success with previous companies, now aim to channel their expertise into impactful endeavors.

Could you share details about your most recent and compelling investment?
The investment is quite recent, having closed just days ago, and was identified through our AI platform, Motherbrain. It represents a clear opportunity – a company building a solution that immediately feels intuitive and necessary. This is a prime example of a product-led business experiencing robust organic expansion from a global customer base, and we are eager to collaborate with them. Previously, Anyfin stood out as a particularly exciting investment. Anyfin exemplifies the potential of Stockholm’s emerging generation of companies, originating from Swedish unicorns like iZettle, Klarna, and Spotify.

What types of startups are you hoping to encounter, but are currently lacking in the industry? What overlooked opportunities exist, and what qualities do you seek in your next investment?
I am actively seeking teams that possess a blend of both practical market knowledge and startup experience. Frequently, teams lean heavily towards one or the other, and a combination of a co-founder with deep problem understanding and another skilled in building and launching ideas would be exceptionally powerful. Beyond this, my focus remains on investing in teams tackling problems affecting large user bases – be it consumers or a broad spectrum of B2B clients. A crucial element, in my view, is a product experience that rivals consumer-grade applications.

Are there any areas that appear oversaturated or too competitive for new startups? What products or services cause you concern?
Given our focus on identifying exceptions, I hesitate to dismiss any category outright due to competition. However, certain sectors present structural challenges to achieving dominant market share, such as specific types of recruitment, staffing agencies, direct-to-consumer brands, or digital health services.

To what extent do you prioritize investments within your local ecosystem versus other startup hubs, or a broader geographic scope? Is it more than 50%? Less?
We operate under a “local with locals” strategy, investing across Europe and selectively in the U.S. While my time is somewhat concentrated on the Nordics, over half of the companies I work with are located outside the Nordic region. Motherbrain has broadened our reach, enabling us to discover promising startups regardless of location, and we frequently invest in exceptional teams beyond our immediate ecosystems.

Which industries in your city and region appear best positioned for long-term success, and which may struggle? Which companies and founders are you particularly enthusiastic about?
The Nordics are a strong source of talent for consumer products, particularly fintech in Stockholm (Tink, Anyfin, Brite), gaming in Finland (Small Giant Games, Reworks, Traplight), and diverse offerings from Copenhagen, including edtech and health tech (Eduflow, Corti). The region’s exceptional engineering talent is also fostering strong tech teams, notably in Finland, such as Varjo, Speechly, and Robocorp. We are also witnessing emerging activity in quantum computing (e.g., IQM). Several ambitious companies originating from the Nordics, like Solein, Einride, Heart Aerospace, and Northvolt, hold significant long-term potential.

What advice would you offer to investors in other cities regarding the investment climate and opportunities in your city?
The Nordic countries consistently outperform expectations, and I am confident this trend will persist, resulting in numerous investment opportunities. As these ecosystems mature, the quality of ventures will continue to improve. Historically, economic downturns have spurred the creation of successful tech companies, so investors should closely monitor the region for opportunities to support seasoned entrepreneurs navigating the current climate.

Do you anticipate a rise in founders originating from areas outside major cities in the coming years, potentially driven by pandemic-related shifts and the appeal of remote work?
I foresee an increase in remote teams, certainly. However, I believe the established hubs will remain vital components of the ecosystem and do not expect significant population declines in these cities. Should individuals choose to leave expensive urban centers, that is understandable. I do anticipate a growing trend of previously localized teams expanding their geographic reach, potentially uncovering new talent pools and fostering the emergence of new hubs.

Which industry segments within your investment portfolio appear most vulnerable or susceptible to changes in consumer and business behavior due to COVID-19? What opportunities might startups capitalize on during these unprecedented times?
Technology is generally well-positioned, as businesses are accelerating digitization efforts in response to COVID-19. This clearly favors the tech sector, or the development of entirely new and forward-thinking concepts. While some of these innovative ideas may be considered non-essential and struggle during times of financial hardship, many offer services we believe will prove valuable in the long run. Businesses reliant on physical interaction, and unable to quickly adapt their products, such as events or fitness services, may experience temporary setbacks, but those built on enduring trends should remain resilient.

How has COVID-19 influenced your investment strategy? What are the primary concerns of the founders within your portfolio, and what guidance are you providing to startups?
COVID-19 has not altered our core strategy, but it has reinforced the importance of adhering to it and maintaining a clear understanding of our own financial resources. Our advice to founders has been twofold: (1) extend your runway to preserve flexibility, and (2) be as proactive as possible. We encourage teams to make swift decisions and rapidly test products in the market. The primary concern of our founders is the uncertainty surrounding the duration of the current situation, and our advice is to maintain their usual course of action rather than waiting for conditions to change.

Are you observing positive indicators – such as revenue growth, customer retention, or other momentum – within your portfolio as companies adapt to the pandemic?
Absolutely! Several companies are exceptionally well-positioned, including Wolt (food delivery) and the mobile game developers we’ve invested in (Popcore, Reworks, Traplight, etc.). The current environment is particularly favorable for these types of businesses, and we have outstanding founders at the helm who have effectively capitalized on the opportunities and achieved substantial growth.

Can you share a recent experience that has instilled hope in you? This could be professional, personal, or a combination of both.
The rapid acceleration of digitization within the public sector, including healthcare, has been encouraging. Sectors that historically offered excuses for slow adoption have suddenly made significant strides and are proud of their progress. This gives me hope for renewed interest in digital solutions even as conditions normalize.

Do you have any final thoughts to share with TechCrunch readers?
The Nordic countries offer numerous examples of digital tools seamlessly integrated into everyday life. I encourage founders and business leaders to examine these examples and explore opportunities to replicate them in other regions. Scandinavian innovation extends beyond fashion and interior design!

Ted Persson, Partner, EQT Ventures

Regarding investment trends, what currently captures your attention?
My primary focus is on supporting highly motivated teams dedicated to resolving genuine issues through the application of advanced technology. This often involves ventures into genuinely deep tech – a departure from the proliferation of “yet another B2B SaaS” solutions addressing similar problems in comparable ways. I am also drawn to teams prioritizing product excellence and design, leveraging exceptional user experiences to broaden access to previously exclusive opportunities. Presently, a significant portion of my time is devoted to exploring the evolving landscape of the creative industries, including marketing and product design.

Could you share details about your most recent and exciting investment?
In recent months, I have either led or participated in four investments spanning quantum computing, group collaboration platforms, and two within the realm of design and development tools. However, announcements regarding these investments are still pending. Our previously publicized investments include Sonantic and Frontify – both demonstrably innovative companies.

Are there specific types of startups you are hoping to encounter within the industry that are currently lacking? What opportunities are currently being underestimated?
The field of educational technology, or Edtech, is one area where I believe there is significant potential.

What key characteristics define your ideal investment opportunity?
Given our pursuit of exceptional companies, it’s challenging to offer broad generalizations. However, I am particularly enthusiastic about ventures tackling complex challenges, rather than simply integrating existing APIs – a task readily achievable by many.

To what extent does your investment focus prioritize your local ecosystem versus broader startup hubs, or a global approach? Does your local ecosystem account for more or less than 50% of your investments?
I maintain a geographically agnostic approach and value collaboration with our teams throughout Europe and globally. However, residing in Sweden naturally strengthens my network within this region. Furthermore, our proprietary AI platform, Motherbrain, actively identifies high-growth and emerging startups beyond our immediate networks and ecosystems.

Within your city and region, which industries appear best positioned for long-term success, and which face challenges? Are there any companies, within or outside your portfolio, and founders that particularly excite you?
The Nordic region demonstrates strength in gaming, entertainment, music, and financial technology. Additionally, the availability of exceptional design talent is notably higher here compared to other European locations.

Do you anticipate a rise in founders originating from areas outside major cities in the coming years? Could the pandemic and the increasing appeal of remote work lead to a decline in the concentration of startups within traditional hubs?
Undoubtedly, yes. While it is still premature to draw definitive conclusions, several portfolio companies have relinquished their physical office spaces, and a considerable number of individuals within the startup community are now working remotely from various locations. I believe this trend will foster a more globally distributed environment.

Which of the industry segments you invest in appear most vulnerable or susceptible to changes in consumer and business behavior due to COVID-19? What opportunities might startups be able to capitalize on during this unprecedented period?
Extensive analysis has already been conducted on this topic, and, like other investors, we dedicated considerable time this spring to mapping these potential impacts. Overall, the technology sector is favorably positioned.

How has the COVID-19 pandemic influenced your investment strategy? What are the primary concerns expressed by the founders within your portfolio? What guidance are you currently providing to startups in your portfolio?
Our core strategy remains unchanged. Initially, we paused briefly to assess the resilience of our portfolio companies. We have now resumed normal investment activity, including making investments without prior in-person meetings.

Are you observing positive indicators – such as revenue growth, improved retention rates, or other positive momentum – within your portfolio as companies adapt to the pandemic?
Yes, we are seeing encouraging trends in several areas, including food delivery services, gaming, remote work solutions, and collaborative platforms.

Can you share a recent experience that has instilled optimism in you? This could be professional, personal, or a combination of both.
Witnessing the rapid adoption of digital tools and working methods by individuals around me, including parents and older relatives, has been particularly encouraging.

Sofia Dolfe, Principal at Index Ventures

Regarding general investment trends, what particularly excites you? I am drawn to products that foster a powerful sense of community and belonging among users. These are platforms where individuals feel genuinely invested in the collective success. A strong affinity for the brand develops over time, naturally leading users to enthusiastically recommend it to their network.

My search for these types of businesses frequently directs me towards consumer businesses and marketplaces that prioritize the customer experience and effectively unite communities.

Are there any startup concepts you'd like to see emerge, or opportunities currently being overlooked? I’m keen to explore innovative approaches to education, particularly in light of the shifts brought about by the COVID-19 pandemic. There appears to be a growing openness to questioning traditional learning methodologies.

What key attributes do you seek in your next investment? I prioritize founders who possess exceptional storytelling abilities. Successfully building a business hinges on inspiring others to join the journey – from attracting talented executives to gaining customer trust and securing investor confidence.

Founders who are compelling communicators, demonstrate ambition from the outset, and exhibit the humility to acknowledge their knowledge gaps, are, in my estimation, best positioned for significant achievement.

Within your city and region, which industries appear poised for long-term success, and which may face challenges? Are there any companies or founders, within or outside your portfolio, that you find particularly promising? Stockholm has a long-established reputation as a leader in both fintech and gaming, and I anticipate these sectors will continue to flourish.

The ongoing transformation of financial services, coupled with the advanced banking infrastructure in the Nordic countries, makes this region particularly attractive for fintech ventures. The gaming industry benefits from a strong history, a high concentration of studios, and a wealth of skilled developers, creating a favorable environment for groundbreaking successes.

A newer, rapidly expanding trend in the region is conscious consumption. Stockholm’s commitment to environmental sustainability, and the maturity of CSR initiatives, responsible shopping practices, eco-tourism, and plant-based food options, are likely to drive growth in this area. I am eager to connect with founders who are deeply committed to this cause.

What advice would you offer to investors in other cities considering the investment landscape and opportunities in your city? Stockholm has consistently demonstrated its strength as a tech hub, possessing many of the essential elements for continued growth. Founders here are inherently ambitious and focus on global expansion from the very beginning.

With a population of only 10 million, Swedish founders recognize the necessity of entering international markets to achieve market dominance. The success of companies like King, Spotify, and iZettle has instilled a sense of confidence and courage in aspiring entrepreneurs. The world sometimes underestimates Sweden due to its understated nature, but the country’s track record proves its ability to consistently overdeliver.

Can you share a recent experience that has instilled hope in you? A few weeks ago, I noticed a handwritten note in the lobby of a Stockholm apartment building. A resident offered to purchase groceries, medications, and other necessities for those who were ill or vulnerable within the building.

This gesture reinforced my belief in the importance of local communities, the responsibility we have to care for one another, and the profound impact a simple act of kindness can have in fostering meaningful connections.

Staffan Helgesson, Partner, Creandum

What general investment trends currently excite you? I am particularly enthusiastic about the transformation occurring within established, large-scale industries like transportation, construction, and real estate. Furthermore, the potential for disruption and advancement within the digital health sector is significant.

What is your most recent and compelling investment? Our latest exciting investment is Mavenoid, a company focused on automating tech support on a global scale. It was founded by former Palantir team members.

What startup opportunities remain untapped in the industry? The insurance market has yet to experience the same level of startup activity seen across the broader fintech landscape.

What qualities do you seek in potential investments? We look for exceptionally ambitious entrepreneurs who are determined to disrupt global markets.

Challenges for New Startups

Which areas are becoming overly competitive? Penetrating many consumer-facing sectors is challenging due to the dominance of large technology companies and the resulting oligopolies.

However, innovative and successful companies consistently emerge despite these obstacles. A prime example is Kahoot, a Creandum portfolio company that recently listed on the Oslo stock exchange with a valuation of $1.5 billion.

How does Creandum balance local versus international investments? Creandum invests throughout the European Union. We do not adhere to specific target percentages; our primary goal is to identify and support the most promising entrepreneurs.

What industries are poised for growth in your region? We are particularly excited about the potential of the digital health industry, specifically companies like Stockholm-based Firstvet and Kry/Livi, which provide telemedicine services for both humans and pet owners.

How should investors view the investment climate in Stockholm? Stockholm and the Nordic region represent a highly sophisticated ecosystem that consistently generates successful global companies.

The Future of Startup Hubs

Will we see a rise in founders from outside major cities? I anticipate that exceptional companies will increasingly be established in diverse locations. The venture capital industry must adapt to this shift.

Venture firms that demonstrate agility and adaptability will be best positioned for success. I also foresee a resurgence of people moving away from major cities, similar to the trend observed in the 1970s, potentially adopting a dual-home arrangement.

Which industries have been most affected by COVID-19? The travel and entertainment sectors have been significantly impacted. However, even within these industries, opportunities exist for companies that can successfully leverage digitization, such as those involved in ticketing and event management.

How has COVID-19 influenced your investment approach? Our investment strategy at Creandum remains unchanged, focusing on access to long-term capital and a proven track record.

What are the primary concerns of your portfolio companies? The biggest worries for founders in our portfolio center around securing long-term capital and demonstrating a strong track record.

What advice are you giving to your portfolio companies? We continue to emphasize the importance of long-term capital access and building a demonstrable track record.

Are you observing positive momentum in your portfolio? We are seeing encouraging signs of revenue growth and improved retention, particularly within the digital health sector.

What recent event has inspired you? The recent completion of a fully remote investment – a company called Meditopia, based in Turkey – was a particularly hopeful moment.

Tanya Horowitz, Partner at Butterfly Ventures

Regarding general investment inclinations, which trends currently generate the most enthusiasm?
Areas of significant interest include deep technology, artificial intelligence, machine learning, and advancements in healthcare and medical technology. We also focus on industrial IoT, associated cloud services, and communication technologies, alongside energy storage, efficient power generation, robotics, intelligent manufacturing processes, and additive manufacturing techniques.

Could you detail your most recent and compelling investment?
Uute Scientific has pioneered a novel natural product formulated with a unique microbial blend. This product is designed for integration into a variety of consumer goods, with the aim of reducing the incidence of immune-mediated conditions, such as asthma and Type 1 diabetes, ultimately enhancing overall well-being.

Within the industry, are there specific startups you’d like to see emerge, or are there currently undervalued opportunities?
In the Nordic region, increased activity in energy storage, power generation, and technologies focused on energy and carbon reduction would be welcomed. Furthermore, food technology and agricultural technology represent promising areas, particularly considering global population growth. The edtech sector also warrants attention, spurred by the changes brought about by the COVID-19 pandemic.

Investment Criteria

What key attributes define your ideal investment prospect?
We prioritize ventures led by a robust and capable team, possessing groundbreaking technology with the potential to address a global market.

Are there sectors that appear overly competitive or challenging for new entrants? What product or service categories raise concerns?
The media and advertising technology landscapes appear saturated, unless a truly differentiated approach is presented. Similarly, the wellness and fitness application market is becoming increasingly crowded.

How is your investment focus distributed between your local ecosystem and broader startup hubs? What percentage is allocated to each?
Approximately 40-50% of our investments are directed towards Finland, with over 30% allocated to Sweden. Norway, Denmark, Iceland, and the Baltic states collectively account for the remaining 20%.

What is your assessment of the long-term prospects for industries within your city and region? Which companies and founders are particularly noteworthy?
The health and medical industries are demonstrably well-positioned for sustained growth.

What advice would you offer to investors considering opportunities in your city and region?
Finland and the broader Nordic region present substantial investment opportunities in exceptional teams and technologies poised for global impact. The region boasts a highly skilled workforce and a supportive startup ecosystem.

Do you anticipate a rise in founders originating from areas outside major cities? Could established startup hubs experience a decline due to the pandemic and the increasing appeal of remote work?
We do not foresee a reduction in activity within established Nordic startup hubs. However, we do expect to see an increase in founders emerging from locations outside of major urban centers.

Which of your investment areas appear most vulnerable to shifts in consumer and business behavior resulting from COVID-19? What opportunities might startups capitalize on during this period?
The retail, restaurant, and service industries have been significantly impacted. Education technology (edtech) is an area deserving of increased attention. Furthermore, online entertainment (OTT), logistics for food and goods delivery, and related sectors present potential avenues for growth.

Impact of COVID-19

How has the COVID-19 pandemic influenced your investment strategy? What are the primary concerns expressed by founders within your portfolio? What guidance are you providing to these startups?
The pandemic has had a limited effect, as we were nearing the conclusion of our investment period and our portfolio companies were well-suited for the current fund vintage. As a leading seed-stage deep tech investor in the Nordics, the majority of our companies have demonstrated resilience.

Are you observing positive indicators – such as revenue growth, customer retention, or increased momentum – within your portfolio as companies adapt to the pandemic?
Indeed, some portfolio companies have benefited from the pandemic, while others experienced initial setbacks but have since demonstrated recovery.

Can you share a recent experience that has instilled optimism?
We are currently in the process of raising Butterfly Ventures Fund IV, a process initiated prior to the pandemic. While the pandemic has caused some delays, our anchor investors and other limited partners remain steadfast in their commitment. Our team is dedicated to securing the first close promptly, enabling us to deploy capital in early 2021. On a personal note, my family and I have been fortunate and remain healthy, which provides daily hope.

Do you have any final insights to share with TechCrunch readers?
International limited partners should actively explore investment opportunities in Europe, with a particular focus on the Nordic region!

Sanna Westman, Principal at Creandum

Regarding investment trends, what currently excites you?
While chasing trends often indicates a late entry, certain macro shifts demand attention. Personally, I find digital health particularly compelling; it’s a continuously evolving field that has experienced significant acceleration recently. Another area of interest lies in solutions designed to enhance leadership, management, and organizational effectiveness. The potential to empower individuals with tools – like no-code platforms and productivity applications – is clear, but extending that empowerment to scaling teams and leaders presents a substantial opportunity. The rise of remote work introduces new managerial challenges, and addressing these is crucial. Furthermore, I anticipate an increase in high-quality companies dedicated to tackling climate change through diverse approaches.

What is your firm’s most recent and promising investment?
Our latest investment is SafetyWing, a company operating at the intersection of social security and the evolving landscape of remote work.

What types of startups are currently missing from the industry, and what opportunities are being overlooked?
The B2B commerce space still holds considerable untapped potential, encompassing areas like marketplaces, e-commerce enablement, and innovative financing solutions. While some companies exist, the number of truly exceptional ones remains insufficient.

What qualities define your ideal investment target?
We seek solutions that deliver immediate value to the user – a rapid “Wow” factor – and continue to build upon that value with continued product usage.

Which sectors are becoming overly competitive or pose significant barriers to entry for new startups? What products or services cause you concern?
The mobility and delivery sectors are notably crowded. Additionally, the open-banking payment solutions space has seen a substantial influx of new entrants.

How does Creandum balance investment focus between its local ecosystem and broader startup hubs? Is the allocation weighted towards the Nordics?
The Nordics, alongside the DACH region, represent a key focus for Creandum, although we don’t adhere to strict geographical allocation targets. Our priority is to support the most promising companies, regardless of their location.

What industries within your region appear best positioned for long-term success, and which companies or founders are particularly noteworthy?
A strong emphasis on product development is a defining characteristic of the local startup scene. Sweden’s relatively small market size also fosters an international mindset from the outset, which is a significant advantage. Kive and Depict are promising early-stage companies to watch. Among more established startups, Kry and Firstvet are leading the way in digital health innovation.

What advice would you offer to investors considering the investment climate and opportunities in your city?
The environment is becoming increasingly competitive, but it also boasts a wealth of talented individuals.

Do you foresee a shift in founder demographics, with more entrepreneurs emerging from outside major cities due to the pandemic and the appeal of remote work?
Even prior to the pandemic, a fully centralized workforce was uncommon in Stockholm’s startup ecosystem; hybrid models were, and continue to be, prevalent.

Which investment areas appear most vulnerable to changes in consumer and business behavior resulting from COVID-19, and what opportunities might startups capitalize on during these times?
Given our fund’s long-term investment horizon – exceeding ten years – short-term impacts are not our primary concern. However, we do consider the long-term effects on areas like business travel. We prioritize identifying opportunities over dwelling on drawbacks, and disruptions often create fertile ground for new ventures.

How has COVID-19 influenced your investment approach? What are the primary concerns voiced by founders in your portfolio, and what guidance are you providing?
Initially, we focused on ensuring portfolio companies had sufficient runway and worked closely with them to navigate potential revenue declines and funding challenges. Fortunately, 2020 proved to be a strong year for many companies, enabling them to secure significant up-rounds. We remained committed to identifying and investing in the best seed and Series A companies, regardless of the circumstances.

Are you observing positive indicators – such as revenue growth or improved retention – within your portfolio as companies adapt to the pandemic?
Absolutely. We’ve witnessed numerous instances of V-shaped recoveries, with revenues surpassing pre-COVID levels and continuing on an upward trajectory.

What recent event has instilled optimism in you, professionally or personally?
The unwavering drive and optimism displayed by the entrepreneurs we encounter are truly inspiring. Their “impossible is nothing” attitude is remarkable.

Who are the key individuals driving success within the local startup community?
Individuals like Joachim Hedenius (Kry, CTO) and Johan Crona, who operate as active, yet often behind-the-scenes, angels and mentors, are instrumental in supporting the next generation of founders. Susanna Campbell and Cristina Stenbeck, through their joint investments, consistently identify opportunities that often elude traditional VCs.