HELSINKI STARTUP ECOSYSTEM REPORT 2021 - NEWCO HELSINKI
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Helsinki Startup Ecosystem Report 2021
Benchmarking
the ecosystem
Source: Dealroom.co
An ecosystem collective
Slush
Home to Maria 01
With startup-centric policy initiatives, a Tech event attracting more
Startup campus in Europe with
than +20K attendees annually
vibrant founder scene and one of the (pre-Covid)
over 175 startup members in
house
most important tech conferences in the
world, in the last ten years Helsinki has Funding Support
National AI Strategy
emerged as an internationally important The first country in the EU to €153M capital applied to
publish a AI policy startups in 2018 through
tech hub, through the combined efforts Business Finland*
of a diverse set of ecosystem
Strong government support
stakeholders to boost economic growth. Initiatives to attract international talent
Page / 3 June 2021 | helsinki.dealroom.co
“Collaboration is key”
”Helsinki aims to be the most functional city in the “A strong sense of community is one of the
world. Startups and scaleups play an important role in cornerstones in the Helsinki startup ecosystem
achieving this goal. We want to promote success. Even if we have been successful in
entrepreneurship and growth in every way possible. attracting VC investment, there is an increasing need
We are delighted how well the companies have dealt and demand for more. It is critical for Helsinki to
with Covid-19 pandemic. The Helsinki startup attract foreign talent and startups in order to be
ecosystem has an unbelievable can-do attitude and successful. Collaboration is the key. We have a
nothing holds us back.” versatile and functional network of various actors that
are crucial in creating a blossoming ecosystem for
Ms. Marja-Leena Rinkineva, Director of Economic Development at City
startups. It all depends on trust and commitment and
of Helsinki.
the success stories highlight the togetherness.”
Mr. Tommo Koivusalo, Head of Unit at NewCo Helsinki
Page / 4 June 2021 | helsinki.dealroom.co
The Helsinki startup ecosystem has tripled in value since 2015. Helsinki-based
startups are now worth a combined €25.2B
Combined value(1) of the ecosystem
€25.2 billion
€7.6 billion
Rest of ecosystem Rest of ecosystem
2015 2021 YTD
1. Sum of the valuations of all startups in the ecosystem founded after 2000. Using estimated valuations based on most recent VC rounds, public markets and publicly disclosed valuations as of May 31st,
2021.
Source: Dealroom.co
Page / 5 June 2021 | helsinki.dealroom.co
Helsinki is the 8th most valuable startup hub in Europe, based on startups
founded since 2000
London €324B
Berlin €122B
Amsterdam €101B
Stockholm €94B
Paris €86B
Bucharest €32B
Mainz €32B
Greater Helsinki Area €25B
Munich €22B
Barcelona €20B
Basel €18B
Gent €16B
Manchester €16B
Dublin €14B
Madrid €13B
Oxford €13B
Cambridge €11B
Oslo €11B
Milan €10B
Hamburg €9B
Source: Dealroom.co
Page / 6 June 2021 | helsinki.dealroom.co
Helsinki also ranks 8th in Europe for number of unicorns created, with four
billion dollar tech companies born in the city
London 64
Berlin 17
Paris 14
Stockholm 14
Amsterdam 13
Munich 10
Dublin 5
Greater Helsinki Area 4
Hamburg 4
Madrid 3
Milan 3
Basel 3
Lausanne 3
Oslo 3
Vienna 2
Barcelona 2
Zurich 2
Copenhagen 2
Gent 2
Bristol 2
Source: Dealroom.co
Page / 7 June 2021 | helsinki.dealroom.co
There are eight high-growth startups on the unicorn track in the Greater
Helsinki Area, currently valued $250M-$1B
Future Unicorns (companies valued over €200 million but less than €800 million).
London 87
Berlin 41
Paris 37
Munich 14
Amsterdam 13
Dublin 11
Stockholm 11
Greater Helsinki Area 8
Barcelona 8
Madrid 7
Copenhagen 7
Zurich 4
Milan 4
Basel 3
Gent 3
Hamburg 2
Lausanne 2
Bristol 2
Oslo 1
Vienna 1
Source: Dealroom.co
Page / 8 June 2021 | helsinki.dealroom.co
Venture capital
landscape
9
VC investment in Helsinki is on track for
another record in 2021
Largest rounds in 2021
Combined venture capital investment into Helsinki
€482M €91M €30M
Late VC Series C Early VC
€917M
€796M
€707M
€25M €19M €15M
€585M Series B Early VC Series A
€555M
€12M €12M €11M
€236M Late VC Series A Series A
€221M
€287M
€10M €10M €9M
2016 2017 2018 2019 2020 2021 Early VC Early VC Angel
Jan-May
Source: Dealroom.co
Page / 10 June 2021 | helsinki.dealroom.coVC investment in Helsinki is growing faster than in London and Paris. It is the 4th
fastest-growing European ecosystem for VC investment
VC funding 2015-2020 CAGR
Bucharest 168%
Zurich 60%
Bristol 59%
Greater Helsinki 42%
Munich 36%
Oxford 31%
Basel 29%
Dublin 26%
Stockholm 26%
London 26%
Amsterdam 24%
Paris 18%
Madrid 9%
Barcelona 8%
Berlin 8%
Cambridge 6%
Milan 2%
Hamburg -1%
Copenhagen -8%
Analyze the data
Source: Dealroom.co
Page / 11 June 2021 | helsinki.dealroom.co
11Helsinki competes with the top global
tech hubs on VC investment per
capita Global comparison of VC
Venture capital investment per capita in 2020 investment per capita in 2020
Stockholm €875 Bay Area €5,299
Tallinn €720
Boston €2,313
London €655
New York €695
Helsinki €611
Helsinki €611
Amsterdam €395
Berlin €377 Beijing €510
Paris €230
Tel Aviv €474
Munich €159
Shanghai €308
Barcelona €63
Seoul €130
Vienna €37
Source: Dealroom.co
Page / 12 June 2021 | helsinki.dealroom.coFood and Enterprise Software startups Most funded startups by industry
receive the most investment in Helsinki
Venture capital investment by industry
▉ Low ▉ High
Food Gaming
2015 2016 2017 2018 2019 2020 2021*
Food
Enterprise Software
Energy
Transportation
Legal
Health
Enterprise Real Estate
Marketing Software
Travel
Gaming
Real Estate
Source: Dealroom.co
Page / 13 June 2021 | helsinki.dealroom.coSpot emerging categories and investment trends INDUSTRIES SUB-INDUSTRIES Food Banking Enterprise Software Business travel Gaming Cloud & infra Health Data protection Fintech Fitness +25 more… +150 more... INCOME STREAMS BUSINESS MODELS Subscription Manufacturing Commission SaaS Advertising Marketplace & Selling own inventory eCommerce TECHNOLOGIES SDGs Deep tech Quality education AI & ML Reduced inequalities 3D printing No poverty Blockchain +14 more... Hardware IOT +13 more... Source: Dealroom.co Page / 14 June 2021 | helsinki.dealroom.co
Finnish startups are attracting more and more foreign capital, a sign of a
maturing ecosystem gaining international attention
Investment in Helsinki startups by source of capital (2016-2020)
1% 0.1% 0.2% 2% 3%
12% 11% 5%
5% 27%
17% 38% 37%
20% 39%
2% RoW
Asia
6%
32% 13% USA & Canada
39%
Europe
28%
33% Domestic
63%
40%
39%
28% 30%
23%
7%
2016 2017 2018 2019 2020 2021
Source: Dealroom.co
Page / 15 June 2021 | helsinki.dealroom.coOverseas investors are particularly important at late stage, while domestic VCs
underpin the early-stage investment landscape
% of investment in Helsinki (2016-2020) by source and round size
17%
39%
52%
67%
84%
Foreign capital
87%
Domestic capital
83%
61%
48%
33%
16% 13%
€0-1M €1-4M €4-15M €15-40M €40-100M €100M+
Pre-seed Seed Series A Series B Series C Megarounds
Source: Dealroom.co
Page / 16 June 2021 | helsinki.dealroom.coThe Helsinki investor landscape is made up
of local and international VCs, as well as VCs: submit your investment data
corporate venture arms, Angels and
government-backed initiatives
Local VCs ordered from seed to series B+ stage
Active foreign VCs ordered from seed to series B+ stage
Other Investor Types
Page / 17 June 2021 | helsinki.dealroom.coTrends & Growth
signals
18Helsinki-based impact startups are gaining Largest impact rounds in 2020
investment momentum. Impact investment
has more than tripled in five years
VC investment into Helsinki impact startups
€74M €36M €15M
Series C Series B Series A
€151M
€5M €4M €4M
€85M Late VC Early VC Seed
€64M €77M
€4M €3M €2M
€51M Seed Late VC Seed
€45M
€2M €1M €1M
Seed Seed Seed
2016 2017 2018 2019 2020
Source: Dealroom.co
Page / 19 June 2021 | helsinki.dealroom.coFinland is a very deep tech focused ecosystem,
powered by top tier universities. 33% of Finnish Deep Tech Spinouts
startup investment goes to deep tech startups
Deep Tech VC investment Deep tech as % of VC Important Deep Tech clusters
2015–2020 invested (2015–2020)
Oxford-Culham-Harwell-Abingdon, Cambridge, Bristol,
UK €18.4B 26% Dundee, Warwick, Southampton, Edinburgh, London*
Berlin, TU Munich, Fraunhofer, KIT, RWTH Aachen Aalto University
Germany €7.6B 24% University, Uni Mainz, Darmstadt University of Technology,
Ulm, German Aerospace Center
Paris, CEA (Atomic Energy Commission), Vision Institute,
France €5.7B 23% LNE-SYRTE, LP2N, Grenoble Institute of Technology,
Inria, Sorbonne (incl. ISIR)
38% Lund, KTH Royal Institute of Technology, Luleå University
Sweden €4.0B of Technology, Uppsala, Karolinska Institute, Chalmers,
ETH Zurich, Swiss Federal Institute of Technology
Switzerland €3.1B 23% Lausanne, EPFL, IDSIA, UZH
Eindhoven/Brainport-ASML-NXP-Philips,
Netherlands €1.6B 20% Delft, Wageningen, TNO, University of Amsterdam, Twente
Finland €1.6B 33% Aalto, University of Helsinki, Oulu, VTT
Ghent, Leuven-Imec, Hasselt, Antwerp, UCLouvain, Vrije
Belgium €1.0B 14% Universiteit Brussel
Ireland €0.9B 26% Limerick, Dublin
University of Helsinki
Spain 32% Starlab, Polytechnic University of Catalonia (incl. ICFO)
€0.8B
Denmark 15% Odense, University of Copenhagen, SDU
€0.7B
Norway 20% NTNU
€0.7B
Italy 17% University of Milan, Politecnico Milano
€0.5B
Austria 24% Tu Wien, University of Applied Sciences Technikum Wien
€0.3B
Warsaw University of Technology, Wroclaw University of
Poland 24% Science and Technology, Polish Center for Technology
€0.2B Development
Estonia €0.2B 21% University of Tartu
Page / 20 June 2021 | helsinki.dealroom.co Source: Dealroom.coMore than 10% of all Finland’s
Startup jobs in Helsinki
tech jobs have been created by
Helsinki-based startups
Startups are an important job growth engine, that
across Europe have been shown to both be
creating jobs at a faster rate than almost any
other industry, and proved resilient during the
pandemic, where other sectors stuttered.
Of Helsinki’s estimated 780K strong workforce(1),
5% are currently employed within the city’s
startup community, a high-growth and
internationally attractive ecosystem. 300k
All tech jobs
in Finland
36K local jobs have been created by Helsinki’s
startups, which continue to attract investment to
fund scaling teams.
36k 780k
Total startup jobs Total workforce in
1. 1.5m people in the metro area, 30% outside working age (64), 74% employment rate. Approx
780k total jobs in the Helsinki metro area (source). Finland counts approx 300k tech jobs (source). In Greater Helsinki Greater Helsinki
Source: Dealroom.co
Page / 21 June 2021 | helsinki.dealroom.coHelsinki founding teams are slightly more Helsinki female-
gender diverse than the Nordic benchmark founded startups
landscape
Helsinki Nordics benchmark Discover the startups
(excl Helsinki)
20% 15%
Min 1 Min 1
female female
founder
founder
80%
All male founders
85%
All male founders
1. Startups founded since 2010 with €0.2M of funding or more, not acquired for both groups
Source: Dealroom.co
Page / 22 helsinki.dealroom.coTaken from
Employee ownership is key for www.notoptional.eu
reinforcing the entrepreneurial flywheel
Latvia 30 5 5 5 5 5 5
Estonia 30 5 5 5 5 5 5
Startups are in a global arms race for tech talent. Ensuring the Lithuania 30 5 5 5 5 5 5
right employee ownership structures is not only crucial for near- Israel 27 5 4 5 5 4 4
term competition in talent acquisition, but also the long-term health Canada 27 5 4 5 5 4 4
of a tech ecosystem. Startups are founded and funded through the France 26 5 4 5 5 3 4
recycled talent and capital of rewarded employees, building critical UK 25 3 5 3 4 5 5
momentum. Portugal 24 3 3 5 5 4 4
US 24 4 4 5 4 3 4
Index Ventures’ Not Optional ranking compares stock option Poland 23 4 3 3 5 4 4
schemes across 20 European and four international countries. Italy 22 3 3 3 5 4 4
Sweden 21 2 3 3 5 4 4
Stock option “friendliness” is assessed on six criteria, including tax Ireland 20 2 3 4 4 3 4
timing, rates and strike price treatment. Australia 16 1 4 1 4 3 3
Denmark 15 1 2 3 3 2 4
Netherlands 15 1 3 3 3 2 3
Switzerland 14 1 3 3 3 1 3
Norway 14 2 3 3 3 2 1
Czechia 14 1 4 2 5 1 1
Finland 13 1 2 3 3 2 2
In much of Europe there remains
Austria 13 1 2 3 4 2 1
significant potential for improvement.
Spain 11 1 2 2 4 1 1
Germany 10 1 1 2 3 1 2
Belgium 10 1 2 1 1 1 4
Source: Index Ventures’ Not optional ranking. More info on https://www.notoptional.eu/
Page / 23 June 2021 | helsinki.dealroom.coPut your startup on the map
Let the best VCs find you
Attract top talent
Contribute to an open
dataset
Claim your profile!
Page / 24 June 2021 | helsinki.dealroom.coMethodology & definitions
Startups, scaleups, Venture capital Valuation Data source
grownups and tech investment
The combined valuation of the tech Dealroom’s proprietary database and
A startup is a company designed to Investment numbers refer to rounds ecosystem is based on their market software aggregate data from
grow fast. Generally, such companies such as seed, series A, B, C, …. late cap or latest transaction value. multiple sources: harvesting public
are VC-investable businesses. stage, and growth equity rounds Market share price taken on June information, user-generated data
Sometimes they can become very big 1st, 2021. verified by Dealroom, data
(e.g. $1B+ valuation). Venture capital investment figures engineering. All data is verified and
exclude debt or other non-equity Transaction value is realised from curated manually.
When startups are successful, they funding, lending capital, grants and exit or implied unrealised valuation
develop into scaleups (>50 people), ICOs from the latest VC round, which is Most underlying data from the report
grownups (>500 people) and result in either announced or estimated by is available online via
big companies, like Wolt or Supercell. Buyouts, M&A, secondary rounds, Dealroom based on benchmarks. https://helsinki.dealroom.co/
and IPOs are treated as exits:
In this report, the term “tech excluded from funding data For Dealroom’s Unicorn Club we Greater Helsinki Area includes
ecosystem” refers to startups, include tech companies founded Helsinki, Espoo, Kauniainen and
scaleups grownups from different Investment rounds are sourced from since 1990, that are current valued at Vantaa.
vintages/cohorts. Only companies public disclosures including press over $1B. We exclude companies
founded after 2000 are included in releases, news, filings and verified that passed $1B as a subsidiary, but For more info please visit
this report. user-submitted information we include companies that may now dealroom.co or contact
be worth less than $1B, but exited at support@dealroom.co
$1B+. More information on the
methodology can be found here.
Future unicorns are companies
valued over €200 million but less
than €800 million.
Source: Dealroom.co
Page / 25 June 2021 | helsinki.dealroom.coYou can also read
