chapter  18
26 Pages

The role of venture capital in the success of the Swedish FinTech industry

WithElizabeth Press

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This chapter provides an introduction to venture capital (VC) and discusses factors that in general make a successful venture capitalist, as well as a more specific discussion on VC in the Nordics and Sweden. VC is a type of financing provided to startups and small businesses with perceived long-term-growth potential. Venture capitalists also possess know-how to identify good entrepreneurs, and networks with customers, service providers, and potential partners, as well as extensive go-to-market knowledge, that help entrepreneurs succeed. The chapter also provides some detail on which segments are being financed, average deal sizes, and notable FinTech deals, as well as some important sector trends. The overall sentiment on the part of the VCs was positive toward the Swedish FinTech ecosystem, pointing to strong fundamentals in the Swedish economy and good-quality entrepreneurs and professionals residing in Sweden. Many VC firms are active in multiple markets, and their investment portfolio companies may be global as well, especially those in Europe.