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Fearless Founders New Hubs for Nordic Founders

Insights from the 2024 Annual European Venture Report

  • Writer: Fearless Founders
    Fearless Founders
  • Jan 26
  • 3 min read

Updated: Feb 6


Nordics Lead the Charge: Sweden's Pivotal Role in Europe's VC Ecosystem


Key Numbers at a Glance

  • Total European Deal Value: €56.7 billion (-7.9% YoY).

  • Deal Count: 9,600 (-23.3% YoY), reflecting tighter capital flows and a focus on quality investments.

  • AI Investments: €14.6 billion (+24.1% YoY), commanding 25% of total deal value.

  • Life Sciences Investments: €8 billion (+22.6% YoY), driven by oncology and healthtech.

  • Exit Value: €20.9 billion (+23.7% YoY, excluding Puig’s IPO).

  • Venture Debt: A record €17.2 billion (+27.3% YoY), highlighting the growing reliance on alternative financing.

  • Fundraising Leader: The UK raised €7.5 billion, with Sweden and the Nordics emerging as innovation hubs.



Montage by Fearless Founders.
Montage by Fearless Founders.

Europe’s VC Landscape: A Year of Selective Investment

The 2024 European Venture Report paints a picture of a maturing ecosystem. While deal volume plummeted, valuations rebounded as investors prioritized startups with clear profitability pathways and strong fundamentals. Sectors like artificial intelligence (AI) and life sciences emerged as the brightest stars in a challenging funding climate.


The Nordics: Driving Innovation Amid Economic Shifts

The Nordics solidified their position as Europe’s innovation frontier, with Sweden standing out as a top performer. Known for its advanced technology infrastructure and sustainability-driven ecosystem, the region consistently punched above its weight in 2024.


Key Nordic Contributions:

  • AI Dominance: Nordic startups played a major role in the €14.6 billion AI investment surge across Europe. Sweden, in particular, demonstrated leadership in applied AI technologies, contributing to the sector’s 24.1% YoY growth (Page 12).

  • Sustainability Leadership: Despite a 26.5% YoY drop in climate tech funding across Europe, the Nordics continued to prioritize green innovation. Their strong emphasis on clean energy and sustainability-driven startups helped maintain regional resilience (Page 7).

  • Fundraising Excellence: Sweden’s Creandum VII, a €500 million early-stage fund, ranked among Europe’s largest, underlining the region’s ability to attract global capital (Page 19).


Sweden’s Competitive Edge:

  1. A talent pool steeped in advanced tech and sustainability expertise.

  2. Proactive government policies fostering innovation and entrepreneurship.

  3. A culture of collaboration and scalability, making Swedish startups attractive to international investors.


Most Invested Industries: Powering the Future of Innovation

Europe’s venture capital activity in 2024 centered around transformative sectors:


1. Artificial Intelligence (AI):

  • Investment: €14.6 billion, the fastest-growing sector (+24.1% YoY).

  • Notable Deals: GreenScale (€1.2 billion, UK) and Wayve (€958.4 million, UK).

  • Key Insight: AI captured 25% of all European VC deal value, with use cases spanning mobility, software, and automation (Page 12).

2. Life Sciences:

  • Investment: €8 billion (+22.6% YoY).

  • Focus Areas: Oncology and healthtech dominated funding.

  • Exit Success: €6.7 billion in exit value, nearly doubling YoY, with high-profile acquisitions such as EyeBio (€2.8 billion) (Page 15).

3. Climate Tech:

  • Investment Decline: A 26.5% YoY drop mirrored Europe’s broader economic challenges. However, the Nordics, led by Sweden, stayed committed to green innovation, maintaining leadership in cleantech (Page 7).


Fundraising Trends: Resilience in a Shifting Landscape


Despite challenging macroeconomic conditions, European fundraising remained robust at €20.5 billion:

  • Regional Standouts: The UK led with €7.5 billion, but Southern Europe and the Nordics emerged as key players, with notable activity in Spain and Sweden.

  • Larger Funds Dominate: The median fund size reached €71.3 million, a record for Europe (Page 20).


Exits Rebound with Strong Momentum

The European exit landscape saw significant recovery, bolstered by mega-deals and improved IPO conditions:

  • Total Exit Value: €20.9 billion, up 23.7% YoY (excluding Puig’s €12.7 billion IPO).

  • Mega Exits: 80% of exit value stemmed from deals exceeding €500 million, including EyeBio (€2.8 billion acquisition) and Rezolve AI (€1.7 billion IPO).

  • Sector Leaders: AI (€5 billion in exits) and life sciences (€6.7 billion) dominated the landscape (Page 14–15).



Conclusion: Nordic Innovation on the Global Stage

The 2024 Annual European Venture Report underscores Europe’s adaptability in an era of economic uncertainty. While overall deal activity slowed, sectors like AI and life sciences flourished, showcasing Europe’s focus on cutting-edge innovation. The Nordics, led by Sweden, proved their mettle as drivers of sustainability and advanced technologies, with their startups standing out for scalability and global impact.


Looking to 2025, key trends such as AI innovation, secondary markets, and sustainability will shape the VC landscape. Sweden and the Nordics remain poised to lead, offering fertile ground for investors seeking high-impact opportunities.

Discover the full report here: 2024 Annual European Venture Report


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