Sweden
Stockholm
"Stockholm is the perfect city for starting up a new venture due to its strong entrepreneurial ecosystem, top-tier education system, supportive government grants, and high quality of life."
Highlights
Despite having just 10 million inhabitants, Sweden is a hotbed for tech innovation. Sweden came in seventh in the IMD World Digital Competitiveness Ranking 2023 thanks in part to its high number of startups. In 2023, it also ranked as the second most innovative country in the world in the Global Innovation Index and the #9 most technologically advanced country by Global Finance.
Stockholm attracts more than 50% of the country’s total foreign direct investment. The Norrsken Foundation’s Impact100, referred to as the Nobel Prize for Impact, lists the world’s most promising impact startups. Stockholm is the third largest Climatetech market with regard to funding and ranks #5 in The Green Future Index 2023, a measure of global sustainability innovation.
Founder network exchange Startup People offers community and funding resources for early- to growth-stage startups. Stockholm University provides students with innovation support through a collaboration with development platform Drivhuset. Support organization Sting has been scaling startups for over two decades and offers an 18-month incubation program with a focus on Climatetech, Healthtech, and Deep Tech.
Ecommerce company MatHem has raised $457.1 million in funding over 13 rounds. Machine-learning education platform Sana has raised $82 million in funding over six rounds. Contraceptive app developer Natural Cycles has raised $44.5 million in funding over five rounds.
The Tech Arena took place in Stockholm in February 2024. Founders Live was held the month before. The annual Stockholm Impact Week brings together startups, talent, investors, business leaders, and policymakers, and Women In Tech Sweden aims to inspire and support women in tech.
Ecosystem by the Numbers
Sub-Sector Strengths
Cleantech
Stockholm aims to be fossil free and climate positive by 2040. Currently, around 60% of Sweden’s national energy supply comes from renewables. Sweden was ranked #10 in the Climate Change Performance Index 2024. Unicorn eco battery manufacturer Northvolt has raised $8.8 billion over 13 rounds. Green energy steel producer H2 Green Steel has raised $5.4 billion over six rounds. ClimateView, a climate action tech company, has raised $31 million over four rounds.
Fintech
Stockholm-based companies account for over 90% of all Fintech investment deals in Sweden and about 65% of the investment value in the Nordics. Stockholm is one of the most dense markets in Europe for digital transactions, with 99% of all commercial transactions processed electronically. Stockholm Fintech Week, held in February 2024, brought together attendees from over 200 startups. Fintech company Brite Payments has raised $60 million over two rounds, most recently from an October 2023 Series A round.
Life Sciences
More than 50% of Sweden’s Life Sciences companies are in Stockholm, including AstraZeneca, 10X Genomics, Immedica Pharma, GHP, Sirona, Polarium, and Pfizer. In July 2023, Sweden announced it would launch a national innovation platform for Life Sciences to facilitate greater use of advanced research infrastructures by companies, and a broader awareness of what these resources can offer. In Singulo Solutions has raised $4 million over six rounds, including a September 2023 seed round.
Reasons to Move Your Startup to Stockholm
Established Startup Community
The birthplace of Skype, Klarna, and Spotify, Stockholm has produced more unicorns per capita than any other European city. The ecosystem has a reputation for strong collaboration, as well as a keen focus on sustainability and mission. Stockholm offers a high survival rate for startups, a high density of angel investors and VCs, and support from state-run agencies.
Opportunities for International Talent
The Swedish government offers visa sponsorship jobs that allow international workers to relocate to the nation. Most jobs in the scheme are in IT, engineering, healthcare, and other skilled industries. The 2023 IMD World Talent Ranking ranked Sweden #10 among 64 economies. English is the office language at many Swedish tech companies.
Quality of Life
Several rankings rate Sweden highly for its quality of life, citing the country’s level of freedom, environmental performance, happiness levels, and its welcoming attitude towards migrants. The nation is home to excellent universities, and tuition is subsidized for students from Sweden, the EU/EEA area, and Switzerland. There are scholarship programs that cover tuition and living costs for highly qualified students from developing nations.
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