5. VC & Growth fundraising: Amount raised declined in 2023
In total, venture and growth funds secured €1.7 billion in funding. The fundraising level varies a lot over time. 2022 was an astonishing year for fundraising in the venture and growth segment, while fundraising in 2023 was significantly lower. Going into 2024, our overview indicates that Nordic venture funds will raise around €1.6 bn this year.
The drop in funds raised could be attributed to the decrease in venture exits. With fewer exits, investors have less capital available for reinvestment into new funds. The distribution of fundraising activity was relatively uniform throughout the year, with a 40/60 split between the first and second halves.
Despite the decline in the amount raised in 2023 compared to 2022, the number of funds that closed was only reduced by 30 percent. Therefore, the decrease in the total amount raised was mainly due to a lower average amount of funds raised per closing.
The decline in fundraising was observed across all Nordic countries, with Sweden experiencing the most significant reduction, after raising record-breaking amount of capital in 2022. Norwegian funds raised the most capital in 2023.
Top 10 Nordic venture funds that closed in 2023
| Fund manager | Fund | Country | Raised in closing (€m) |
|---|---|---|---|
| Verdane | Verdane XI | Norway | 605 |
| Monterro | Monterro G1 | Sweden | 150 |
| Nordic Alpha Partners | Nordic Alpha Partners Fund II | Denmark | 150 |
| Lifeline Ventures | Lifeline Ventures V | Finland | 150 |
| Sound Bioventures | Sound Bioventures Fund I | Sweden | 116 |
| Pale Blue Dot | Pale Blue Dot II | Sweden | 93 |
| eEquity | eEquity V | Sweden | 90 |
| Kvanted Ventures | Kvanted Industrial Tech Fund | Finland | 70 |
| Climentum | Climentum Capital Fund I | Denmark | 60 |
| Hadean | Hadean II | Norway | 54 |
Fundraising expected to remain at 2023-levels in 2024
A total of 21 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 at the same levels in 2024. As the graph below shows, funds with an aggregated target amount of €1.6 billion are in fundraising. However, it is still too early to tell how many will succeed in their fundraising efforts in 2024.
Cyclical fundraising: As the graph shows, the fundraising level varies a lot over time. 2022 was an astonishing year for fundraising in the venture and growth segment, while fundraising in 2023 was significantly lower.