Less venture capital gets invested in companies in the Nordics, shows the latest edition of KPMG's Venture Pulse report.

Volume of venture capital invested in the Nordics has declined from a total of $916 million invested with a deal count of 121 in Q1 2020 to 643 million dollars invested in Q2 distributed on 93 deals. This also illustrates a significant drop compared to last year, where over $1913 million was invested during the same quarter spread out on 235 deals.

The sharp decline in venture capital stands in contrast to the development of the venture capital market globally, which has shown a lot more resilience despite the COVID-19 pandemic and maintained almost the same level.

“The Nordic ecosystem is entering a stage where there are a lot more growth stage companies that need international money and the connections that international investors can provide to help them scale. Given the pandemic, this is the biggest problem the Nordic market has right now — and it’s one the governments here are working to tackle through specific funding programs,” says Jussi Paski, Head of Startup Services, KPMG in Finland. 

Globally, investments reached $62.9 billion across 4,502 deals almost equalling total investment from the first quarter of the year and only slightly off the pace seen in 2019’s second quarter, which registered $69.8 billion invested.  

Download the full Venture Pulse Q2 report here. 

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Jan Hove Sørensen

Partner, Head of Corporate Finance and M&A

KPMG in Denmark