5. VC & Growth fundraising: Record-high amount raised
Never before have Nordic venture and growth funds raised more capital. In total, venture and growth funds raised €7.1 bn, which is more than twice the previous record from 2019. Despite activity slowing down in the second half of 2022, most of the fundraising was closed in the second half of 2022. Going into 2023, our overview indicates that Nordic venture funds will raise around €2.6 bn this year.
Nordic venture and growth funds raised a record-breaking amount of funds in 2022. In total, fundraising in the segment amounted to €7.1 billion, which is an increase of almost 250 % compared to 2021, and an increase of 138 % compared to the previous record year 2019, when a total of €3 billion was raised.
Fundraising activity was high throughout the year, as 24 funds had closings during 2022, which was just as many as in 2021. This is close to the record number of closings from 2020, when 27 Nordic venture funds had closings. However, the average amount of funds raised per closing was a lot lower in 2020.
The two largest funds with closings in 2022 accounted for almost 50 % of the fundraising. However, even when we exclude the two largest funds, the amount raised was still at a record-high level. In addition, there were seven funds that were €100 million or larger in size. This illustrates that, even though investment activity slowed down during 2022, due to several factors, access to risk capital for Nordic fund managers remained good. See the list: Top 10 Nordic venture funds that closed in 2022.
Top 10 Nordic venture funds that closed in 2022
| Fund manager | Fund | Country | Raised in closing (€m) |
|---|---|---|---|
| EQT | EQT Growth | Sweden | 2,400 |
| EQT | EQT Ventures III | Sweden | 1,100 |
| Northzone | Northzone X | Norway | 1,000 |
| GRO | Gro III | Denmark | 600 |
| Creandum | Creandum VI | Sweden | 448 |
| Inventure | Inventure IV | Finland | 150 |
| Vendep Capital | Vendep Capital Fund III | Finland | 70 |
| Sandwater | Sandwater Fund I | Norway | 65 |
| Luminar Ventures | Luminar Ventures Fund II | Sweden | 60 |
| Innovestor | Innovestor Health and Life Science Fund | Finland | 60 |
Fundraising expectations for 2023: Cautious optimism
A total of 26 funds in Nordic venture have closing in their pipeline, according to our overview. A lot of funds are in the market for funding, and activity is expected to remain high in 2023. As the graph below shows, funds with an aggregated target amount of €2.6 billion are in fundraising. However, it is still too early to tell how many will succeed in their fundraising efforts in 2023, as the current market conditions have increased the uncertainty.
Cyclical fundraising: As the graph shows, the fundraising level varies over time. 2022 was an astonishing year for fundraising in the venture and growth segment.