Why the Nordics need a common Venture Ecosystem

In the same way we have developed a Nordic startup ecosystem, we should develop a Nordic Venture Ecosystem that attracts private capital into Nordic opportunities

Last week we hosted in Copenhagen the first edition of Venture Front, an event dedicated to gathering frontier managers in the Nordics and exploring the Nordic Venture Opportunity.

There are three main reasons why we should cooperate in the Nordics to develop a common Nordic Venture Ecosystem.

1) Venture Capital in the Nordics is a young industry, with just over two decades of practice, compared to US Venture Capital which has been operating since 1960. Therefore it needs expertise, best practices, and success stories, to support its development and competitiveness compared to other venture ecosystems in the world.

2) Venture Capital as a finance instrument has a direct correlation to startup success and, if applied correctly, it has the capacity to accelerate the growth and development of key industries in the Nordics and shape the Nordic region for the better.

3) Nordic Venture is shaping the Nordic region. By promoting best practices and supporting Nordic funds to have a positive contribution to Nordic companies, we are shaping the Nordic region. The new Nordic funds are more likely to be:

  • Sector-focused funds. This means that instead of being industry-agnostic they are investing in the Nordic industries with the highest potential and of the highest social interest, such as Climate and Sustainability, Health and Life Science, FinTech, or Deep Tech, among many other verticals.
  • Nordic-focused funds. This means that instead of investing locally or regionally, more and more are choosing to invest in pan-Nordic and therefore increasing Nordic cross-border investments.
  • Sustainable funds. Meaning that they are integrating ESG considerations into their investment process or investing directly in sustainability and the SDG goals, increasing the capital available for sustainable and green companies in the region.
  • Gender-inclusive funds. This means that they are more committed to gender balance in their team structures, and they are more likely to have at least one female as a part of their partnership structure, increasing gender representation in venture and capital allocation into women-led companies.

In the same way we have developed a Nordic startup ecosystem, that ensures there are favorable conditions for any Nordic company to grow and succeed, we should develop a Nordic Venture Ecosystem that ensures we have favorable conditions to attract private capital into Nordic opportunities and that we have a developed and well-functioning Nordic Capital Market.

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