The State of Nordic Impact Start-ups 2020 - Danske Bank
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The State of Nordic Impact Start-ups 2020 Impact start-ups are increasingly being acknowledged as powerful engines for change and sustainable growth. Yet a number of widely held beliefs prevail and threaten to hinder the progress of the Nordic impact start-up ecosystem. This report explores 10 of the most common myths, and assesses the status quo of impact start-ups in Denmark, Sweden, Norway and Finland.
Content
04 Foreword by Danske Bank
06 Summary
08 Introduction
11 10 myths about the Nordic impact space
12 Myth 1: The Nordic countries are global leaders
within the impact space
24 Myth 2: Nordic impact start-ups are solving the
most pressing global challenges
34 Myth 3: Impact start-ups are a special breed of
start-up
38 Myth 4: Impact requires a trade-off between
purpose and profit
40 Myth 5: Impact start-ups have fundamentally
different business models than ‘regular’ start-ups
44 Myth 6: Impact start-up founders lack business
experience
47 Myth 7: There are more women founders in the
impact start-up scene
50 Myth 8: Impact cannot be measured
54 Myth 9: The majority of Nordic impact start-ups
promote their SDGs
57 Myth 10: Investors lack data on impact start-ups
60 Appendix: About this report - definitions,
methodology and data
3
FOREWORD BY DANSKE BANK
State of Nordic Impact
Start-ups 2020
We are now only 10 years from 2030, the year 193 Findings
countries pledged to reach the UN Sustainable Development There are some specific learnings in the report that we find
Goals. There is still a long way to go and many solutions need extremely interesting and promising. For instance the fact that
time to scale, which leaves us with a great deal of urgency. we have identified a record high 1018 impact start-ups this
year, and that a lot of them have similar business models in
In Danske Bank, we are a true believer in the power of comparison to ‘normal’ scalable tech start-ups.
business to find innovative solutions and new ways of doing
things that will create new solutions to the challenges that our We see that the majority of the impact start-ups are based on
planet and societies face. In particular, we have high hopes scalable business models that have the potential to work on
that impact start-ups will be the role models for a new type of normal early stage investor terms. These start-ups integrate
business, where the business idea itself creates sustainable impact in a way that goes hand-in-hand with profit, and almost
values. They have no legacy that blurs their focus and delays half of the founders of the Nordic impact start-ups have prior
their speed, and they are ready to take risks and bring entrepreneurial experience. Women CEOs and founders are
innovation and new technologies to the table. Furthermore, well represented in impact start-ups, but we firmly believe
they have an agile mindset through which they can react to that these numbers could and should improve – especially in
market changes with high speed. deep tech - as diverse companies overall tend to generate
better results for the business, as well as society.
Insights are needed to mature the ecosystem
In Danske Bank, we are dedicated to help these start-ups The Nordic ecosystem has great prerequisites for being a well
scale their business and thus increase their positive impact. performing impact ecosystem, but we, in the ecosystem need to
We have a large suite of activities, which support the impact pick up the pace. If the Nordics are to become an epicentre for
start-up ecosystem. We have trained growth advisors to impact start-ups, we need to move beyond the converted few.
understand startups and established the +impact platform
and our +impact accelerator. When we started this report, COVID-19 was not present,
and we still don’t know the full scale of the consequences.
An important element is documentation - like this report – However, this does not change the conclusions, and in many
through which we provide data-driven insights on the Nordic ways, it has just made it even more pressing that we need
impact start-up scene in order to facilitate a more fact based to mainstream the impact agenda.
dialogue and help put the spotlight on the needs and
development of the start-up community. Klavs Hjort, Head of Growth & Impact at Danske Bank
Since we did the first report three years ago, impact start-ups Maria Simonson, Head of Societal Impact & Sustainability,
have become the talk of the town, both in the Nordic Danske Bank
countries and on a global scale. Today, the question is
therefore not so much to create awareness, but to
understand how we can accelerate the ecosystem and to
create larger transparency especially for investors. This is
also the reason why we this year have focused the report on
breaking or confirming the myths that seem to be a
hindrance for accelerating impact businesses.
4 5
Summary
Since we published our first insights report on Nordic A key overall finding is that the Nordics countries have a MYTH #1 The Nordic countries are global leaders within impact start-ups.
Impact start-ups in 2018, we have experienced an growing number of impact start-ups, maturing to a point PARTLY FALSE The Nordic ecosystem has great prerequisites but the UK is the best
increasing interest in impact start-ups from a range of where they are beginning to resemble regular growth stage
performing impact ecosystem in Europe.
ecosystem players. start-ups. This can be interpreted from a number of sub-
findings: a) many of the impact start-ups seem to have more
This enthusiasm for impact tech supports our belief that the in common with their conventional counterparts in the same MYTH #2 Nordic impact start-ups are solving the most pressing
Nordic region can become an epicenter for impact start-ups. vertical than with other impact start-ups; b) the majority of global challenges.
However, when we talk to investors and start-up founders, the start-ups’ are based on potentially scalable business PARTLY FALSE The majority of the Nordic impact start-ups are focusing on solving local
we still find that there are several narratives that are holding models that have the potential to work on regular early
back the space. stage investment terms, c) 98% of the impact-start-ups
problems in high-income markets, fewer focus on solutions which will move the needle on the
integrate impact in their business model to enhance profit underlying SDG indicators.
In, The State of Nordic Impact Start-ups 2020 we have and d) 45% of the founders have significant entrepreneurial
therefore identified 10 of the most widely beliefs, that are experience. We are seeing positive progress on many fronts MYTH #3 Impact start-ups are a special breed of start-ups.
preventing the Nordic impact ecosystem from being taken to amongst Nordic impact. However, there is still a way to go
PARTLY FALSE The impact start-ups differ in type of impact and scalability - some with the
the next level. This forms the foundation for the exploration if we are to move the needle on the UN’s 2030 agenda for
of 10 myths, where we try to give clear answers to complex sustainable development. same mindset as their conventional counterparts.
solutions through data driven insights.
MYTH #4 Impact requires a trade-off between purpose and profit.
FALSE 98% of Nordic impact start-ups integrate impact to
improve top and bottom-line.
1018 Top 4 SDGs MYTH #5 Impact start-ups have fundamentally different business
models than non-impact start-ups.
FALSE Impact start-ups’ business models are similar to regular start-ups.
IMPACT START-UPS MYTH #6 Impact start-up founders lack business experience.
FALSE Impact start-up founders have significant business experience.
MYTH #7 There are more women founders in the
impact start-up scene.
TRUE 24% of impact start-ups founders are women.
MYTH #8 Impact cannot be measured.
GEOGRAPHICAL DISTRIBUTION PARTLY FALSE Impact measurement is still in its infancy, but 20% of Nordic impact
IMPACT START-UPS start-ups quantify their impact performance indicators.
35% 27%
MYTH #9 The majority of Nordic impact start-ups promote their SDGs.
FALSE Only 10% of Nordic impact start-ups mention the SDGs.
MYTH #10 Investors lack data on impact start-ups.
PARTLY FALSE The data is just as imperfect as for non-impact start-ups.
DENMARK SWEDEN
21% 16%
FINLAND NORWAY
6 7
Introduction
This is the third time we map Nordic start-ups addressing
the United Nations Sustainable Development Goals.
The aim of this report
We believe that the Nordic countries hold the prerequisites topics we explore. As the space develops further, so will our
and potential to become a global epicentre for impact start- leaning. As such, we hope this report will help to move the
ups. Our early adoption of the green agenda, balanced welfare conversation in the right direction and ultimately accelerate
societies and thriving start-up ecosystems stand us in good progress in the Nordic impact start-up space.
stead to take this pole position.
Who would benef it from this report
Though we have the necessary mindset and attributes, This report is primarily intended for the investment
we cannot sit back and expect for this to happen without community and aims to help early investors gain data-driven
concerted strategies and interventions. In order to make this insights into this growing space. The report is also intended
a reality and reach this goal, we must continue to actively to benefit the broader ecosystem as it reveals data-driven
support the scaling of impact start-ups, help build the right insights that can ignite further discussion on how best to
capabilities amongst founding teams, and connect impact accelerate the Nordic impact start-up space.
start-ups with new investment and ecosystem partners.
It is furthermore our hope that this report will contribute to a
Since 2018, there has been increasing support and shared societal understanding of the importance of the Nordic
excitement for this new breed of start-up and the mark they impact ecosystem - and why all relevant stakeholders should
could make on the UN’s 2030 agenda. Yet when we talk to be investing in and contributing to its future.
investors and impact founders, we find that there are several
myths getting in the way of progress. Def inition of an impact start-up:
We define an impact start-up as ‘a start-up company that
For this years’ report, we have decided to deep-dive into the addresses one or more of the UN Sustainable Development
10 most common myths holding back the impact space Goals at the core of its business and have the potential to
in the Nordics - assessing to what extent they are valid scale’.
or invalid - and outline what can be done to change these
perceptions. We acknowledge that it is difficult - if not Our litmus test: If you remove the impact you also remove
imposssible - to give simple answers to the multifacetted the business.
Who is included in the report In 2019 we presented our second report ‘The State of
Figure 1 We are building on the data gathered in both the 2018 Nordic Impact Start-ups’ which identified 647 impact
Sample size of impact start-ups in Danske Bank impact insights reports 2018, 2019 and 2020 and 2019 reports, leveraging our existing learnings and start-ups across Sweden, Norway, Finland and Denmark.
contextualising these within the wider Nordic start-up
ecosystem. In 2020 we are presenting our third report, which has
NUMBER OF START-UPS
identified 1018 impact start-ups across Sweden, Norway,
Number of start-ups at the Hub and impact start-ups Finland and Denmark.
from 2018-2020
We have analysed impact start-ups registered on either New dimension of this year’s report
the Hub (thehub.io), on +impact (plusimpact.io) or at Green The previous reports have catalysed many fruitful dialogues
317 647 1018 Innovation Group (greeninnovationgroup.com). To validate and and learnings. This is why we have decided to expand the
strengthen the data quality further, we have collaborated with State of Nordic impact start-ups report to include a digital
Dealroom (dealroom.co) by cross-comparing funding data. data repository at +impact, plusimpact.io/impactreport-2020.
While the content of this report will be available, you will also
In 2018 Danske Bank conducted the first Nordic analysis be able to download the data applied in the various charts.
of impact start-ups, which identified 317 impact start-ups
across Sweden, Norway, Finland and Denmark.
YEARS 2018 2019 2020
8 9
10 myths about the
Nordic impact space
A lot has happened since 2018 when we embarked upon our journey of
providing data driven insights on Nordic impact start-ups. Impact start-ups
have increasingly become the talk of the town, both in the Nordic countries
and on a global scale.
Back then, we set out to understand at large to accelerate, we have carefully These insights are a snapshot of the
what challenges the Nordic impact identified the 10 most prevalent myths current situation, which during the
start-ups face. Our surveys revealed that are preventing the space from making of this publication developed in
that 87% of these start-ups were developing. an unforeseen direction as the second
challenged by the nature of the hand effects of COVID-19 froze the
ecosystem - finding it fragmented and 1. The Nordic countries are global (capital) markets affecting many start-
lacking in awareness from stakeholders leaders within impact start-ups. ups.
and the general public.
2. Nordic impact start-ups are The exploration of the 10 myths
As a result, we published the first solving the most pressing global should therefore be understood as an
impact insights report which presented challenges. invitation for further dialogue on how
an overview of the ecosystem. we can leverage the Nordic impact
3. Impact start-ups are a special start-up ecosystem’s strengths, and
To further support the impact start-up breed of start-up. how stakeholders can contribute to
ecosystem, established the +impact its improvement through collaboration
platform, and started an impact 4. Impact requires a trade-off whether that being under normal or
accelerator. between purpose and profit. abnormal circumstances.
We then went on to publish The State 5. Impact start-ups have
of Nordic Impact Start-ups 2019, fundamentally different business
which provided further insights into models than ‘regular’ start-ups.
who these start-ups are, what their
focus is and not least, how they 6. Impact start-up founders lack
perform from an economic standpoint. business experience.
Our findings showed that impact start-
ups follow similar financial trends 7. There are more founders that are
as other start-ups: their growth is women in the impact start-up
dependent on available risk capital; scene.
they focus on top-line growth but
struggle to make a profit, with financial 8. The majority of Nordic impact
performance improving as they mature. start-ups promote their SDGs.
This year’s report stands on the
shoulders of these previous learnings 9. Impact cannot be measured.
on the Nordic impact start-up
ecosystem. With an inherent desire 10. Investors lack data on impact
to enable Nordic impact start-ups to start-ups.
further mature and for the ecosystem
10 11
MYTH #1
The Nordic countries are global
leaders within impact start-ups
partly false The Nordic ecosystem has great prerequisites but
the UK is the best performing impact ecosystem in Europe
In the Nordic countries, we are proud of A. The Nordic Start-up Ecosystem 1. A v ibrant start-up community Internationally acknowledged start- 2. Active established players
the unique qualities that characterise Based on international literature on The entire ecosystem in the Nordics ups have paved the way for others, The Nordic region has been recognised
Figure 1.1
our part of the world. We have low start-up ecosystems, we have identified has matured significantly; Stockholm creating more mature ecosystems as the most innovative region in
The intersection of the Nordic start-up
levels of inequality, balanced welfare ecosystem, the Nordic impact agenda and six defining factors of a thriving start-up as well as Copenhagen host which are filled with knowledge Europe with Sweden, Finland and
provision and have been acknowledged the Nordic impact start-up ecosystem ecosystem: strong start-up communities (start- and expertise. (start-upguide.com) Denmark being acknowledged as a
as the most innovative region in upgenome.com, blog.dealroom). These conditions have fostered new regional innovation leader and Norway
Europe (European Commission, 2017). 1. A vibrant start-up community: At Entrepreneurs have become more promising tech start-ups such as KRY, acknowledged as a strong regional
Combined with our relatively early a grassroots level, there is a need experienced, teams are more diverse Simple Feast, Kolonial.no and ICEYE. innovator (EU Regional Innovation
adoption of the sustainable growth A. Nordic start- for a range of activities and events and have stronger international However, when we look at the number Development 2019). Corporate
up ecosystem
agenda, the Nordic countries have which can help the establishment connections from the start, and there of potential future unicorns, we still involvement in the Nordic countries
been recognised as frontrunners in the and growth of start-ups. has been solid growth in the number see that the Nordic countries are far has been lagging behind its European
green economy transformation. 2. Active established players: It is of start-ups and scale-ups (start- behind the UK, Germany and France peers, but it is catching up with the
crucial that established players in upgenome.com) (dealroom.com). rest of Europe (blog.dealroom).
But are we as far ahead as we would C. Nordic impact B. The Nordic the field are investing in innovation
like to think? We have deep-dived into start-up impact agenda and leveraging its potential fully. However, the corporate involvement in
ecosystem the Nordic countries has been lagging
the Nordic impact start-up ecosystem Start-ups alone cannot build a
to assess the status quo. The health thriving ecosystem. behind its European peers, but it is
of the Nordic impact ecosystem is 3. Access to risk capital: Access to catching up with the rest of Europe
inextricably linked to the overall start-up risk capital is critical in order to (blog.dealroom).
Source: State of Nordic Impact Start-ups
ecosystem and the general societal fuel the growth of these innovation
awareness of impact. So how are these frontrunners.
three intersecting domains actually 4. Political support and ‘friendly’
Figure 1.2
performing in the Nordics? regulation: The business
The most valuable tech companies of the Nordic countries and their pipeline of promising start-ups
environment needs to be accessible
and open, with centralised state
bodies making public commitments $25B
to support these start-ups. A
proactive and collaborative mindset $10B
across stakeholders is essential.
5. Access to talent: Knowledge
$5B
intensive sectors are deeply
dependent on access to a highly
$2B
skilled and specialised labour force.
6. Brand as a hub: National and
$1B
regional branding is essential
to attract international talent,
$500M
investors, businesses.
$250M
Taking a closer look at the performance
of the Nordic start-up ecosystem
based on these six parameters, we
see that: SWEDEN DENMARK NORWAY FINLAND
Source: Dealroom
12 13
Figure 1.3 Figure 1.4
Number of potential future unicorns: start-ups valued over €250 million but less than €1 billion, 2020 Cumulative capital investment 2015-2019 in Europe
United Kingdom 12000
UK 98 LONDON 60
Germany
GERMANY 60 PARIS 37 France
Sweden
FRANCE 54 BERLIN 27 Finland 10000
Denmark
SWITZERLAND 16 MUNICH 10
Norway
SPAIN 16 DUBLIN 8
8000
NETHERLANDS 13 BARCELONA 8
SWEDEN 11 STOCKHOLM 6
IRELAND 11 AMSTERDAM 6 6000
DENMARK
10 CAMBRIDGE 6
RUSSIA 10 MADRID 6
10 20 30 40 50 60 70
4000
10 20 30 40 50 60
Source: Dealroom, State of European Tech
2000
In recent years corporates have 3. Access to risk capital 4. Political support and ‘friendly’
increasingly implemented open The capital investments in the Nordic regulation
innovation initiatives and collaboration countries follow a positive trend - The Nordic countries are known for a
with start-ups, SMEs and knowledge however, the Nordic countries are stable macroeconomic environment,
institutions. Many of these players far behind the top three European a widespread and strong digital 2015 2016 2017 2018 2019
have even established their own countries; the UK, Germany and infrastructure, and a high level of Source: Dealroom, State of European Tech
accelerators. France. Only Sweden managed to digitisation and e-readiness (World
decrease the gap in 2019. Economic Forum).
Figure 1.5
Measured by the total number of unique Furthermore, Denmark and Norway Top 15 hubs by number of unique funded companies 2015-2019
companies that have raised funding are ranked among the world’s top 10 3000
since 2015, we once again see the UK, on ease of doing business in - as is the
France and Germany be the European UK (worldbank.org). On top of that, the
top performers. Sweden comes in again region holds state investment funds 2500
# of unique funded companies
as the Nordic top performer at a global providing funding and networks as
4th place, while Finland is ranked 7th, well as cross collaborating with other
2000
Denmark is ranked 13th and Oslo start-up ecosystems.
is ranked 14th (Dealroom, State of
European Tech 2019). 1500
Taking a closer look at the variety of
1000
investors, we see that the UK has
a wider variety of investors, where
Sweden for example relies more on 500
domestic and European funding.
LONDON PARIS BERLIN STOCKHOLM AMSTERDAM BARCELONA DUBLIN HELSINKI MADRID MOSCOW MUNICH MILAN COPENHAGEN OSLO ZURICH
Source: Dealroom, State of European Tech
14 15
Figure 1.6 USA and Canada Rest of World Domestic Figure 1.8 Figure 1.9
Mix of investors 2018-2019 Global Human Capital Index 2017 Global Talent Competitiveness Index 2020 top 10
Asia Europe cross-border
Switzerland Country Score Rank Country Rank
United
Norway 77.12 1 Switzerland 1
Kingdom
Finland 77.07 2 United States 2
Spain Switzerland 76.48 3 Singapore 3
United States 74.84 4 Sweden 4
Germany
Denmark 74.40 5 Denmark 5
Sweden Germany 74.30 6 Netherlands 6
New Zealand 74.14 7 Finland 7
Netherlands
Sweden 73.95 8 Luxembourg 8
France Slovenia 73.33 9 Norway 9
20 40 60 80 100 Austria 73.29 10 Australia 10
Source: Dealroom Source: World Economic Forum Source: GTCI
Figure 1.10
2019 Global start-up Ecosystem Ranking
5. Access to talent 6. Brand as a hub Within a broader context, we see
Figure 1.7 The Nordic countries are known for The growing number of internationally that the innovation policy advisor
Ease of Doing Business Ranking 2019 having a highly educated workforce minded tech events are contributing and researcher firm start-up Genome Area Rank
due to well-functioning and free to branding the Nordics as a thriving ranks Silicon Valley, New York City Silicon Valley 1
Country Rank educational systems. Supporting this start-up scene: Slush, Oslo Innovation and London as the top global start-up New York City 2
New Zealand 1 notion, the World Economic Forum Week, Stockholm Tech Fest, TechBBQ, ecosystems in their flagship report
ranks the Nordic countries among the Techfestival, Katapult Future Fest as the Global start-up Ecosystem 2019. London 3-4
Singapore 2 world top 10 in human capital based just some examples. Stockholm has been ranked 11th Beijing 3-4
Hong Kong SAR, China 3 on level of formal education, formal place, while Western Denmark (due
Boston. 5
education of the next generation, The Nordic ecosystem is further to a strong cluster within Advanced
Denmark 4 Tel Aviv 6-7
breadth and depth of specialised being promoted through the hashtag Manufacturing and Robotics as well
Korea, Rep. 5 skills as well as skill application and #nordicmade, a community-based as Life Sciences) and Copenhagen Los Angeles 6-7
United States 6
accumulation. movement for branding, marketing and are being seen as European high-
Shanghai 8
outreach to promote both regional and growth ecosystems and Helsinki
Georgia 7 Likewise, the 2020 Global Talent international awareness of Nordic tech being acknowledged as a Challenger Paris 9
United Kingdom 8 Competitiveness Index ranks the (nordicmade.org) ecosystem. Oslo is not mentioned Berlin 10
Nordic countries among the world top (Start-up Genome). Stockholm 11
Norway 9
10 in talent.
Seattle 12
Source: The World Bank
However, digital skills as well the Toronto-Waterloo 13
more technically minded coders and
Singapore 14
developers are a scarce resource
within the ecosystem - and Sweden in Amsterdam-Start-up Delta 15
particular lacks these competencies Austin 16
in their labour force (World Economic Chicago 17
Forum, daxx.com).
Bangalore 18
Washington D.C. 19
San Deigo 20
Source: Startup Genome
16 17
In summary, the Nordic start-up ecosy- made considerable progress in the use
stem holds many strengths: a mature of renewable sources of energy over
Figure 1.11 Figure 1.13
start-up scene, established players the last two decades. On average, the
2019 Global start-up Ecosystem Ranking, Challenger Start-up Ecosystems Lowest scores of SDGs among the Nordic countries
who are innovative and increasingly Nordic countries generate electricity
active, a strong (digital) infrastructure from renewable sources at four times
Country City Rank Country/ SDG 2 Zero SDG 12 SDG 13 SDG 14 Life
and friendly business environment, the rate of other OECD countries (State SDG Hunger Sustainable Climate Below Water
Finland Greater Helsinki 1 a highly educated labour force and a of the Nordic Region 2020). Consumption and Action
China Hangzhou 2
series of international acknowledged Production
tech events. Though the Nordic region’s reputation
Indonesia Jakarta 3 Denmark 68.3 49.8 90.2 49.9
for prioritising impact on the political
Nigeria Lagos 4 B. The Nordic Impact Agenda agenda is positive and well-deserved, Sweden 63.3 52.2 87.2 42.3
Australia Melbourne 5 The Nordics are frequently referred it does not mean the Nordic countries
Finland 58.2 48.7 71.0 55.5
to as the global leaders on impact. should rest on their laurels. The
Canada Montreal 6 Supporting this notion, Denmark, Nordic countries obtain their lowest Norway 57.0 30.5 54.4 66.2
Russia Moscow 7 Sweden, and Finland are among the scores on SDG 2 Zero Hunger, SDG
Source: sdgindex.org
world’s top 10 with the highest scores 12 Sustainable Consumption and
India Mumbai 8
on implementing the UN’s Sustainable Production, SDG 13 Climate Action
Brazil Sao Paulo 9 Development Goals (The Sustainable and SDG 14 Life Below Water. These
Figure 1.14
Korea Seoul 10
Development Report 2019). scores are related to the high GDP The UN SDG Index
per capita that exists in the Nordics
Source: Startup Genome The high ranking is rooted in the entailing high consumption patterns Rank Country Score
Nordic welfare society founded on with significant environmental and
1 Denmark 85.20
Figure 1.12 social responsibility, collaboration and socio-economic repercussions. The
2019 Global start-up Ecosystem Ranking, High-Growth Ecosystems environmental awareness. Since the low score of SDG 2 Zero Hunger is 2 Sweden 85.00
1960’s the Nordic countries have driven by increasing adult obesity and
3 Finland 82.80
Phase Rank Ecosystem been amongst the most generous high consumption of meat. Overall
donors of development aid (oecd. the scores show that further efforts 4 France 81.50
1 Western Denmark
org); Sweden is known for being are needed to protect biodiversity and 5 Austria 81.10
2 Belgrade and Novi Sad an initiator of The United Nations support sustainable production and
Environment Programme in 1972; consumption (sdgindex.org). 6 Germany 81.10
Activation 3 Taipei City
Norway’s Gro Harlem Brundtland 7 Czech Republic 80.70
4 Atlantic Canada (Prime Minister 1981, 1986–89, In summary, the Nordic countries
8 Norway 80.70
5 Manila 1990–96) established the Brundtland are perceived as impact leaders - a
Commission, which firmly placed notion that is supported by the high 9 Netherlands 80.40
1 Paris
sustainable development on the rankings of the Nordic countries at the 10 Estonia 80.20
2 Montreal political agenda in the 1980s. UN SDG index. This ranking is rooted
Source: sdgindex.org
in the Nordic welfare model being the
Globalization 3 Antwerp
Today, the Nordic Council of Ministers hallmark of a well-functioning society
4 Sydney is collaborating across the region to within the international community.
5 Copenhagen fulfill the vision: “The Nordic region Yet the high consumption rates and
will become the most sustainable associated environmental effects must
1 Amsterdam-Start-up Delta and integrated region in the world by be addressed if we are to achieve our
Attraction 2 Bangalore 2030” closely aligned to the UN 2030 goals for the UN 2030 Agenda.
Agenda. Supported by the Nordic
3 Stockholm
Council, the Nordic countries have
*Based on growth in funding, exists & number of start-ups
Source: Startup Genome
18 19C. The Nordic Impact Start-up From a relative standpoint, Sweden
ecosystem is home to nearly 10% of all venture Figure 1.15 Figure 1.16
backed impact tech companies in Top 20 countries by share of venture backed impact tech Rank of countries by %-point difference in relative share of impact driven
The inception of the UN SDGs in Europe, but accounts for only 4.3% of companies in Europe European tech companies versus all European tech companies
2015 sparked a new rise in impact all European tech companies. Similarly,
led initiatives in the Nordic start-up Finland shows a small lead on the % of impact tech companies in Europe %-point difference in relative share of European impact
% of all tech companies in Europe tech companies versus all European tech companies
communities. number of impact tech companies
accounting for 4.7% of all European
The start-up event Slush in Helsinki impact tech companies and 3.9% of all 23%
UNITED 4.5%
launched its Global Impact Accelerator European tech companies. Conversely, KINGDOM 22.9% SWEDEN
in collaboration with the Ministry Of Denmark and Norway are lagging 17.6%
0.8%
Foreign Affairs in Finland in 2015 and when benchmarked being home to FRANCE 17.7% FINLAND
Green Innovation Group launched the respectively 1.3% and 1.1% of impact 10%
0.4%
Green Tech Challenge. The non-profit tech companies vs. 2.4% and 1.4% of GERMANY 14.2% AUSTRIA
organisation Norrsken launched its tech companies. 9.6%
0.1%
coworking space and VC fund targeting NETHERLANDS 9.6%
impact tech in 2016. Katapult Future In absolute terms, London is the 9.4%
0%
Fest was launched in Oslo in 2017. capital of impact driven start-ups SWEDEN 4.9% NETHERLANDS
The non-profit organisation The One within Europe; it is home to nearly 4.7%
0%
initiative connecting impact start-ups 1 in 10 companies with an impact- FINLAND 3.9% HUNGARY
and investors was founded in 2018 driven mission. But on a relative basis, 4.5%
SPAIN FRANCE -0.1%
alongside +impact aiming to support Stockholm is the number one city 9.6%
the Nordic impact start-ups and NIIN with the heaviest weighting towards 3.8%
-0.1%
IRELAND BELGIUM
(Nordic Impact Investing Network) with impact tech companies compared to 5.3%
the goal of “making impact investing its European counterparts. It should 3.6%
ITALY NORWAY -0.3%
mainstream” (start-upguide.com). be noted that the data sourced by 4.6%
But how is the Nordic impact start-up Dealroom in this analysis are based 3.2%
-0.6%
SWITZERLAND SWITZERLAND
ecosystem actually performing? on venture backed companies. As 3.8%
London holds huge amounts of capital, 1.7%
-0.9%
BELGIUM PORTUGAL
As this evaluation of the Nordic - as the city will have an advantage in this 1.8%
well as the European and global - comparative analysis. The analysis does 1.3%
-1%
DENMARK ITALY
impact start-up ecosystem is fairly new not provide input on the numbers of 2.4%
territory, we stay humble to our few early start-ups emerging. 1.7%
-1.1%
NORWAY DENMARK
supportive data sources. To benchmark 1.8%
the Nordic impact start-up ecosystem 1.1%
-1.2%
AUSTRIA RUSSIA
against an European context we have 0.7%
studied the data provided by Dealroom 0.8%
-1.2%
POLAND 2.8% ESTONIA
for The State of European Tech 2019.
According to the study, the UK, France 0.6%
-1.5%
PORTUGAL 1.5% IRELAND
and Germany are home to the highest
number of venture backed European 0.6%
-1.7%
RUSSIA LITHUANIA
1.8%
impact tech companies.
0.6%
ESTONIA POLAND -2%
1.8%
0.4%
HUNGARY GERMANY -4.2%
0.4%
0.2%
LITHUANIA SPAIN -5.1%
1.9%
5 10 15 20 25 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5
% OF ALL COMPANIES %-POINT DIFFERENCE
Source: Dealroom, State of European Tech Source: Dealroom, State of European Tech
20 2113.4%
4.3%
STOCKHOLM
1.9%
4.3%
PARIS
7.3%
3.4%
AMSTERDAM
3.3%
2.8%
BERLIN
6.2%
1.7%
HELSINKI
1.9%
1.5%
DUBLIN
2.8%
1.3%
ZURICH
1.1%
1.3%
ESPOO
0.4%
DELFT
1.3% To sum up, looking at how the Nordic Conclusion
0.4%
Figure 1.17 impact ecosystem performs in terms To assess the performance of the Conversely, the Nordic countries
of their share of European impact tech Nordic impact start-up ecosystem, we receive a high ranking on the Figure 1.18
Top 10 European
3 cities by6 share of impact
9 driven 12 15
The intersection of the Nordic start-up
European tech companies companies, it is clear that London have taken a look at the intersection SDG Index compared to their ecosystem, the Nordic impact agenda and
outperforms in terms of absolute of the Nordic start-up ecosystem, the European peers. However, the high the Nordic impact start-up ecosystem
% of purpose-driven tech companies in Europe
numbers. However, Stockholm stands Nordic impact agenda and the Nordic consumption patterns and associated
% of all European tech companies
out with a significant portion of impact impact start-up ecosystem. environmental spillover effects need
tech companies. Paris houses an to be addressed if we want to achieve
LONDON
9.4% equal share of impact tech companies, The Nordic region holds many our goals for the UN 2030 Agenda. A. Nordic start-
up ecosystem
13.4%
but a higher share of tech companies. prerequisites of a thriving start-up
STOCKHOLM
4.3% As the total numbers imply, there ecosystem - but also some When zooming in on the Nordic
1.9% is still work to be done before the weaknesses that are holding the impact start-up ecosystem, the
4.3% Nordics as a region can take pride in ecosystem back. However, once data from The State of European
PARIS
7.3% being an epicentre of European impact again Stockholm stands out - this Tech 2019 indicates that London C. Nordic impact B. The Nordic
3.4%
tech companies. time with the relatively biggest lead of not only holds the highest share of start-up impact agenda
AMSTERDAM
impact start-ups in their ecosystem. tech companies in Europe but also ecosystem
3.3%
In addition, Western Denmark and the highest share of impact tech
2.8%
BERLIN
6.2%
Copenhagen are perceived as high- companies. However, once again
growth start-up ecosystems and Stockholm stands out - this time with
1.7% Source: State of Nordic Impact Start-ups
HELSINKI Helsinki as a challenger start-up the relatively biggest overweight of
1.9%
ecosystem. impact start-ups in their ecosystem.
1.5%
DUBLIN
2.8%
1.3%
ZURICH
1.1%
1.3%
ESPOO
0.4%
1.3%
DELFT
0.4%
3 6 9 12 15
Source: Dealroom, State of European Tech
% of purpose-driven tech companies in Europe
% of all European tech companies
Perspective: On the Nordic ecosystem
Rolf Kjærgaard, CEO, Vækstfonden
"We see a clear and positive development in the Nordics, where both
entrepreneurs and investors have a strengthened focus on themes
such as sustainability, green transition and social accountability. It is
our belief that purpose and profit go hand in hand, and the strongest
and most successful companies are the ones that integrate impact
into their core business. The Nordics are at the forefront within
sustainability, and with the ongoing crisis caused by the Covid-19
pandemic it has become even more important that we keep the
momentum and drive that positive development forward.”
22 23MYTH #2
Nordic impact start-ups are solving
the most pressing global challenges
partly false The majority of the Nordic impact start-ups are focusing on
solving local problems in high-income markets, fewer focus on solutions
which will move the needle on the underlying SDG indicators
Since the 2030 Agenda for Looking at Nordic impact start-ups We reflect on whether the empirical
Sustainable Development and the 17 through the overall lens of the SDGs, distribution of the Nordic impact start- Figure 2.1
Sustainable Development Goals (SDGs) our study shows that the biggest ups addressing the SDGs represents Distribution of the Nordic impact start-ups’ SDG focus area: % distribution of 1018 companies
were adopted by all United Nations share of the start-ups are centered the normative distribution. Is it possible
Member States in 2015, the term around SDG 3 Good Health and Well- to prioritise the clusters according to the 25
‘impact’ has developed from a niche to being (21%), SDG 12 Responsible greatest needs and target our supportive
a norm. Consumption and Production (21%) efforts within this field?
and SDG 7 Access to Clean and
In parallel, the Nordic start-up Affordable Energy (11%) as wells According to the UN, the solutions 21% 21%
ecosystem has seen an increasing as SDG 11 Sustainable Cities and should work in parallel: “(...) ending 20
amount of budding impact start- Communities (10%), which together poverty and other deprivations must
ups aspiring to do good while doing accounts for 63% of the start-ups. This go hand-in-hand with strategies that
business. But what does impact distribution is almost identical to our improve health and education, reduce
actually mean for Nordic impact findings last year (The state of Nordic inequality, and spur economic growth
start-ups? Impact Start-ups 2019; Insight report: – all while tackling climate change and 15
Impact start-ups 2018). working to preserve our oceans and
In order to understand what kind of forests” (un.org/sdgs).
challenges the Nordic impact start-ups On a geographical level, the top four
are addressing, we have examined their categories are the same for all four In the following sections, we take a 11%
core business through the lens of the countries, Denmark, Sweden, Norway closer look at the value creation of 10% 10
UN’s 17 Sustainable Development and Finland. the solutions in these three clusters,
Goals (SDGs). People, Prosperity and Planet to assess 8%
On a cluster level, we see that 37% the alignment between the SDGs and
of the start-ups relate to the cluster actual impact.
Prosperity (SDG 7-11); 32% of the 5
start-ups relate to People (SDG 1-6) 4% 4% 4% 4%
mainly driven by SDG 3; 27% of the 3%
start-ups relate to the cluster Planet 1% 2% 2% 2% 2%
1%
(SDG 12-15) and 4% of the start-ups 0%
relates to Other (SDG 16-17).
PEOPLE PROSPERITY PLANET OTHER
Source: State of Nordic Impact Start-ups
24 254%
27%
More start-ups are 37%
working with SDGs
related to
prosperity & planet
People than people
Around 32% of the Nordic impact Figure 2.2 KubeEnergy - a Norwegian start-up bringing energy to rural African communities
Distribution of Nordic impact start-ups related to 4%
start-ups are addressing SDG 1-6 in
the SDG categories Prosperity, Planet and People
the cluster People. We have analysed % distribution of 1018 companies
Kube Energy supplies electricity from off-grid energy solutions Kube Energy promotes access to low carbon energy and
32%
their solutions to explore the alignment so communities, government agencies, businesses and supports climate resilient development and growth in hard-to-
between the SDGs and the solutions of 27% organizations can access clean energy, reduce energy costs, reach and fragile areas across West, Central and East Africa.
No. of start-ups working More start-ups are 37%
the Nordic impact start-ups: with prosperity goals streamline operations and lower carbon emissions. Their solutions are being implemented across rural communities
working with SDGs
No. of start-ups working related to
in countries like Mali, Uganda, South Sudan and Somalia.
Looking at the solutions offered by with people goals
No. of start-ups working
prosperity & planet
the Nordic impact start-ups under the than people
with planet goals
cluster of People, we see that SDG No. of start-ups working with
3 Health and Wellbeing represents other goals (SDG 16 and 17)
the biggest share of start-ups. The
challenge with this goal is that it 32%
has become synonymous with an
Source: State of Nordic Impact Start-ups
industry vertical. We must let go of No. of start-ups working
with prosperity goals
the reductive thinking that an industry
No. of start-ups working
vertical equals impact. A start-up in the Figure 2.3 with people goals
health sector providing supplements Description and keyword breakdown of People SDGNo.
cluster
of start-ups working
or medtech wearables for people with with planet goals
high quality of life, is not necessarily No. of start-ups working with
SDG Description Key words
other goals (SDG 16 and 17)
aligned with the intent of the SDGs.
SDG 1 No Poverty End poverty in all its forms Digital charity platforms;
everywhere Insurtech and fintech in low-
While these solutions create great income countries
value and impact for their customers,
the intent of the SDG is to increase SDG 2 Zero Hunger End hunger, achieve food Reduced food waste; Plant
security and improved rich diet; Local produce;
life expectancy, reduce maternal and nutrition, and promote Organic produce; Solar
child mortality as well as fight against sustainable agriculture protein; Meat alternatives
leading communicable diseases (un.
org/sdg3). Similarly, while expensive SDG 3 Health and Wellbeing Ensure healthy lives and Vitamin supplements; Elderly-
promote well-being for all at care; Wearables; Weight
educational apps for children in high-
all ages trackers; Diagnostics, Digital
income countries serves a good care; MedTech
purpose, it serves less the intent of
the SDG which is characterized by SDG 4 Quality Education Ensure inclusive and Educational gaming;
improving learning outcomes for the equitable quality education Coding toys; Virtual Reality
full life cycle, especially for women, and promote lifelong learning storytelling
girls and marginalized people in opportunities for all
vulnerable settings (un.org/sdg4). It is
SDG 5 Gender Equality Achieve gender equality and AI measuring bias; Digital
important to note that many start-ups empower all women and girls headhunting; Female Health;
categorised in this cluster are aligned Female Urinal
with the intent of the SDGs - but they
are underrepresented. SDG 6 Clean Water and Ensure availability and Water saving; Water
Sanitation sustainable management of circulation; Water treatment;
water and sanitation for all Drinking water from air
Source: State of Nordic Impact Start-ups
26 27Prosperity
Around 37% of the start-ups in stations to embed the infrastructure. Perspective: On the global challenges
Thorben Sander, Founder and Chairman of the Board, TechVelopment /
the sample, fall into the cluster of These measures - if scaled - have
Danish Impact Business Network
Prosperity (SDG 7-11). We have the potential to decarbonize private
analysed their solutions to explore the transportation. "There exists a great opportunity for Nordic innovative companies to assert themselves in
alignment between the SDGs and what emerging countries on the long run - both from a financial and an impact perspective. The
the start-ups are offering. Yet in a similar way to the People presence of the Nordic companies in the developing countries is relatively small compared to
cluster, we also see many solutions the potentiality. The knowledge, competencies and capital of the Nordic countries is exactly
We acknowledge that the targeted at improving high quality what is in demand in the developing countries: renewable energy, health and infrastructure as
categorisation of the solutions listed lifestyles; e.g. employee satisfaction well as the collaboration between private, public and civic entities.
for SDG 7 Access to Clean and measurements, leadership
Affordable Energy is ambiguous. development. The Nordic countries are well positioned to support the rapidly growing demand for innovative
While the cluster Prosperity is solutions that will improve lives in developing countries. Our tradition of long-term commitment
characterized by improving the quality in international development corporations and influential institutions with presence in the
of life, the renewable energy solutions emerging countries, has enabled us to build strong relations, gain cultural know-how and
also address the characteristics of the credibility. Additionally, there is a great latent investment appetite for SDG/impact investments
cluster Planet by contributing to the in emerging countries, but the investors do not have knowledge or safe structures to invest
decarbonisation of the energy sector. Figure 2.4 from. The challenge is that the Nordic countries have not organized partnerships and structures
Following the indicators of SDG 7, Description and keyword breakdown of Prosperity SDG cluster that can help start-ups and SMEs truly succeed in the emerging countries.
we have listed these solutions here
as they contribute to increasing the SDG Description Key words
This is why we have initiated the TechVelopment Hub in Denmark. In the spirit of Sustainable
global electrification rate as well as Development Goal 17, the TechVelopment Hub Denmark will be an organisation and physical
the renewable energy consumption SDG 7 Access to Clean and Ensure access to affordable, Renewable energy; Rooftop hub based in Copenhagen aiming to mobilize the significant development capacity across all
Affordable Energy reliable, sustainable and solar; Biomass; Hydropower;
(un. org/sdg7). modern energy for all Wind turbines; Geothermal relevant Danish actors to support the rapidly growing demand for scalable innovative solutions
in developing countries and grow the number of successful TechVelopment entrepreneurs."
Looking at the solutions offered by SDG 8 Decent Work and Promote sustained, inclusive Employees satisfaction;
Economic Growth and sustainable economic Connecting platforms; Impact
the Nordic impact start-ups under the growth, full and productive leadership development;
cluster Prosperity we find that SDG employment and decent work Employer rating
for all
7 Access to Clean and Affordable The Protein Directory - a Danish start-up dedicated to helping start-ups
Energy and SDG 11 Sustainable SDG 9 Industry, Innovation Build resilient infrastructure, Electric Vehicles; Electrical working with alternative proteins also known as meat substitutes.
Cities and Communities represent and Infrastructure promote inclusive and Bicycles; Electrical Boats,
the biggest group within this cluster. sustainable industrialization Charging Stations; Robotics The Protein Directory helps founders
and foster innovation
As these two areas are strongholds by telling their success stories and
in the Nordic region and are among by connecting them with investors,
SDG 10 Reduced Inequalities Reduce inequality within and Blockchain for identity
some of flagships of the Nordic among countries certificates; Immigrant experts and leading corporations. The
Council of Ministers vision, it is not integration community started in October 2019
surprising that start-ups within these and since became the largest publicly
SDGs are leading the way. We also SDG 11 Sustainable Cities Make cities and human Air quality monitoring; available database of alternative protein
and Communities settlements inclusive, safe, Waste management; IoT
see a significant share of start-ups resilient and sustainable and sensors; Retrofitting;
start-ups covering 300+ companies
developing electric bikes, electric Automated buildings; Safety from all over the globe.
vehicles, electric boats, and charging
Source: State of Nordic Impact Start-ups
28 29Planet Among start-ups working under Project Drawdown On an overall level 23% of the Nordic
Around 27% of the start-ups in the Figure 2.5 SDG 13, we see a range of climate and Planet solutions impact start-ups address solutions
sample are in the cluster Planet (SDG Description and keyword breakdown of Planet SDG cluster related educational apps and games To further our perspective on the mentioned in the Project Drawdown’s
12-15). We have analysed their as well as digital platforms helping scale and intensity of impact amongst Scenario 1 targeting to stop climate
solutions to explore the alignment corporates and communities identify the Nordic impact start-ups with the change close to 2˚C of global warming
SDG Description Key words
between between each start-up’s environmental measures. cluster of Planet, we have further (Scenario 2 target to stop climate
impact and the SDGs: SDG 12 Responsible Ensure sustainable Alternative consumer evaluated the start-ups focus through change close to 1.5˚C).
Consumption and Produc- consumption and production products; Second-hand; While these solutions are important the lens of Project Drawdown.
tion patterns Sharing Economy; Fashion;
Looking at the solutions offered by Food; Production equipment in tackling current challenges and Project Drawdown is a research
the Nordic impact start-ups under contributing towards the green based framework which ranks the
the cluster Planet we see that the SDG 13 Climate Action Take urgent action to Educational games; transition within the Nordics (which most substantive solutions needed
combat climate change educational apps; Flood
biggest group of start-ups addresses and its impacts Barriers; Carbon off-set also have very high environmental to reverse global warming. There
SDG 12 Responsible Consumption footprints), there is an asymmetry in are many solutions for reducing and
& Production. According to the SDG 14 Life Below Water Conserve and sustainably use Wastewater treatment; the distribution of SDG focus in the stopping the amount of greenhouse
Bertelsmann Stiftung foundation, the the oceans, seas and marine Cleaning the oceans for cluster Planet: On an overall level, gases (GHG) emitted into the
resources for sustainable plastics; Bioplastics; Algaes;
Nordic countries score low on this development AI for fish farms there are few start-ups addressing atmosphere, including decarbonizing
particular SDG, so the start-ups here goals such as SDG 14 Life Below the energy, food and agriculture,
fulfill an important role in challenging SDG 15 Life on Land Protect, restore and promote Apps for agroforestry; Water, SDG 15 Life on Land and SDG transport, construction, and
the conventional companies and their sustainable use of terrestrial Soil mapping and fertilizer 6 Clean Water and Sanitation. manufacturing sectors.
current practices. With a focus on ecosystems, sustainably optimisation; Grain analyzer;
manage forests, combat Agriculture simulation
sustainable and local supply chains,
desertification, and halt and software; Mobile game on
zero waste, and circular production reverse land degradation and nature
many start-ups are aspiring to close halt biodiversity loss
the current gap.
Figure 2.6 Figure 2.7
Source: State of Nordic Impact Start-ups
Distribution of start-ups within top 80 Distribution of Nordic impact start-ups addressing the top 10 solutions according to Project Drawdown 2020
solutions ranking in Project Drawdown Scenario 1 stopping climate change close to 2˚C of global warming. % distribution of 1018 companies
% distribution of 1018 companies
Ranking Project Drawdown Solutions % of Nordic Scenario 1 - Gigaton
Project % distribution of impact start-ups CO2 Equivalent
Drawdown Nordic impact reduced, 2020-2050
Ranking start-ups
1 Reduced Food Waste 2.6% 87.45
Top 1-10 8.9%
2 Health and Education 0.9% 85.42
C-green - a Swedish start-up Top 11-20 1.1%
converting industrial biomass to 3 Plant-Rich Diets 2.2% 65.01
biofuel energy Top 21-50 7.1%
4 Refrigerant Management 0.3% 57.75
Top 51-80 6.0%
C-green have developed a new way 5 Tropical Forest Restoration 0.0% 54.45
to convert wastewater sludge, indu- Total sum 23.1 %
strial sludge and wet biomass into 6 Wind Turbines (Onshore/Off-shore) 0.2% 47.21+10.44
Source: State of Nordic Impact Start-ups
fuel. Through advanced processing
7 Alternative Refrigerants 0.3% 43.53
of hydrothermal carbonization (HTC),
they are setting an environmental 8 Utility-Scale Solar Photovoltaics 0.7% 42.32
benchmark for industrial sludge
9 Improved Clean Cookstoves 0.1% 31.34
disposal.
10 Distributed Solar Photovoltaics 1.6% 27.98
Total 10 Total 8.9%
Source: State of Nordic Impact Start-ups
30 31Markets
4%
19%
Over 90% of Nordic
Impact markets are
focussed on high-
income markets
The distribution can be categorised in Target market Conclusion While the focus of these SDGs While the study has shown that there
Figure 2.8 four sub-categories: When we further identify the With an intention to assess the type contribute to solving relevant are some very promising solutions
77%
Distribution of target markets amongst Nordic
Around 9% of the Nordic impact start- distribution of target markets amongst of challenges the Nordic impact start- challenges in the local high-income and technologies amongst the
impact start-ups. Sample size: 990
ups work with the top 10 solutions Nordic Impact start-ups’, we see that ups are solving, we took a look at the market and off-setting the significant Nordic impact start-ups with a great
Low-income Markets that Project Drawdown have defined only around 23% of the Nordic impact Nordic impact start-ups through the environmental footprints in our region, potential to scale, more collaborative
Multiple as the most efficient in reversing global start-up target multiple or low-income lens of the Sustainable Development the focus on solving the most pressing efforts across stakeholders need to
Markets
High-income Markets
warming. These solutions include markets, while 77% target high-income Goals. We found that the majority challenges in low-income countries be initiated if we want to mitigate
Reduced Food Waste and Plant Rich markets. This supports our finding that of start-ups focus on SDG 3 Good is underrepresented. Considering the and reverse the effects of climate
4%
Diets as well as Rooftop Solar. Only the Nordic impact start-ups primarily Health and Wellbeing (21%), SDG operational structures of the funding changes in accordance with the Paris
1% of the start-ups work with the top contribute to solve the challenges of 12 Responsible Consumption and market, the overrepresentation of Agreements and UN 2030 Agenda.
19% 11-20 solutions; around 7% work with their local and regional high-income Production (21%) and SDG 7 Access Nordic start-ups’ focus on local Examples could be more public and
top 21-50 and around 6% work with markets. Though data transparency on to Clean and Affordable Energy (11%) markets and relatively easily private partnerships, more visible
the top 51-80. Please see appendix target market(s) is lacking in the case as wells as SDG 11 Sustainable marketable solutions is to be expected. political support and supportive
Over 90% of Nordic
for the full table of solutions and of some start-ups, the distribution is Cities and Communities (10%), which We need these structures to include measures for impact entrepreneurs.
Impact markets are
focussed on high- distribution of Nordic impact start-ups. still significantly weighted towards high- together accounts for 63% of the more room for start-ups focusing on
income markets income countries. The distribution may start-ups. complex solutions in broader markets
not be that surprising given that many - currently this type of Nordic impact
early-stage investors and founders We reflected upon how this start-up most often emerges as R&D
77%
find it more feasible to begin by solving distribution could reflect a potential spinouts affiliated to universities.
the pains of their local market whilst norm. While we have not found a
being close to their customers. (Impact blueprint for the optimal distribution The same picture appears when
Low-income Markets Report: Nordic Investors 2019). As of start-ups addressing the SDGs, we applying the lens of the Project
Source: State of Nordic Impact Start-ups
Multiple later-stage investors tend to have more have deep dived in order to analyse the Drawdown framework. Around 23%
High-income Markets global focus, we expect that some of alignment of the offered solutions and of the Nordic impact start-ups
the Nordic impact start-ups will scale to the intent of the SDGs. address solutions mentioned
other markets when at growth-stage. in Project Drawdown that can
contribute significantly to reversing
global warming.
Perspective: On the global challenges
Ruth Brännvall, Co-founder and CEO, Impact Invest
”Very few Nordic start-ups today focus on challenges in the least
developed countries. My feeling is that we saw more entrepreneurs
targeting Africa and South-East Asia ten years ago.
At the same time, these regions have seen a massive rise in
entrepreneurial activities and improved infrastructure. There is a higher
chance to succeed today in partnering, in tech development and in
reaching a very large population. I would really encourage impact-driven
companies here to think of the global south from the start.
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