Iceland, a Nordic sanctuary in the North Atlantic, is recognized for its stunning scenery and dynamic culture. Aside from its natural beauty, Iceland has quietly established itself as a vibrant entrepreneurial hotspot. With a supportive government policy, a high rate of digitization, and a strong commitment to utilizing technology for the greater good, Iceland has been effective in producing fast-growing companies. The venture capital market in the country has broken records, with a higher rate of startup investments in 2022. In this article, we have compiled a comprehensive list of top VC Funds and Angel Investors in Iceland that can provide you with the capital and support to help you succeed!
Topics Covered:
Why Should You Raise Funds in Iceland
Venture Capitalist Funds in Iceland
Angel Investors in Iceland
Closing Thoughts on VCs and Angel Investors in Iceland
Why Should You Raise Funds in Iceland?
When it comes to raising funds for your startup, Iceland offers several distinct advantages. One of the most significant advantages is Iceland's strong and supportive business environment, largely due to efforts from the public sector. In recent years, the Icelandic government has implemented several policies and initiatives to support the growth of startups. One of the key initiatives is the Startup Iceland program, which provides funding, mentorship, and resources to early-stage startups. The program aims to create a supportive ecosystem where startups can thrive and grow.
In addition to the Startup Iceland program, the government has also established various funds and grants specifically targeted at startups. For example, the Innovation Fund Iceland, provides financing for research and innovation projects, while the Technology Development Fund supports the development of new technologies. The Kría Icelandic Venture Initiative is another entity created by the Ministry for Industries and Innovation in Iceland. It functions as a state-backed VC fund-of-fund that invests in local early-stage VC funds that will also serve as an incentive for other limited partners to invest. These funds, along with other grants and incentives, help startups overcome the financial hurdles they often face in the early stages of development.
The government has also worked towards streamlining the regulatory framework for startups, making it easier for entrepreneurs to start and operate their businesses. Iceland has a business-friendly environment with minimal bureaucracy and efficient administrative processes. As a country with a small population, the government is accessible and easy to coordinate with. This supportive regulatory environment further enhances the attractiveness of Iceland as a destination for startups looking to raise funds.
Venture Capitalist Funds in Iceland
The venture capital firms below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2013
Stage: Pre Seed, Seed
Focus: Sector Agnostic
Notable Portfolio: Quest Portal, Arctic Theory, Taktikal, Overtune
Brunnur Ventures GP is a venture capital firm that focuses on early and transformational investments in businesses. Founded in 2014, the firm has a reputation for collaborating with innovative entrepreneurs and investing in Icelandic startups and growing firms. The firm's investment team combines decades of start-up expertise, including both triumphs and failures in worldwide marketplaces to provide important insights and support to the firms in which they invest, from inception and early stage through development and exit.
Year of Inception: 2021
Stage: Pre Seed, Seed
Focus: Technology
Notable Portfolio: Kollektiv, Kanda, Eupry, Leske, Veras, Læsk, YOGO, Lab08
Ugly Duckling Ventures focuses its investments on pre-seed and seed-stage Nordic enterprises. Founded by a team with vast expertise in creating and expanding businesses, the firm takes an active approach to its investees and has a proven track record of success. They are especially interested in businesses with innovative business strategies and a positive environmental impact. Ugly Duckling Ventures values founder-friendly interactions and supports its portfolio firms with funding, know-how, investor network, and real-world application.
Year of Inception: 2017
Stage: Seed, Series A
Focus: FinTech
Notable Portfolio: Klarna, Lunar, Open Payments, Receipt Hero, Indo
As a venture capital firm, Goose Valley Ventures (GVV) holds strong belief in the Nordic region and its entrepreneurs. GVV is at the vanguard of helping and growing the region's next wave of creative businesses, with a focus on FinTech and Impact investments. The company is home to successful FinTechs and acts as a Nordic Tech center. GVV has a strong investor base that includes Fortune 500 executives and serial entrepreneurs that regularly participate in early-stage enterprises. GVV provides essential tools and assistance to the entrepreneurs it invests in through its experience and network.
Year of Inception: 2020
Stage: Seed, Series A
Focus: FoodTech
Notable Portfolio: Chromologics, Melt&Marble, eniferBio, Hailia Nordic
Nordic FoodTech VC is a venture capital fund that focuses on deep foodtech startups in the Nordics and Baltics. Their objective is to assist businesses that are developing innovative technologies and using scientific findings to address significant issues in the global food chain. The VC focuses on early-stage firms and provides finance to entrepreneurs working on novel food and farming solutions. The fund's staff is made up of seasoned partners with backgrounds in business strategy, entrepreneurship, innovation, and food technology.
Year of Inception: 2017
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: Mainframe, Lucinity, Garden, Avo, Monerium, Kind
Crowberry Capital specializes on seed and early-stage investments in the Nordics. The VC firm seeks exceptional teams that are establishing global enterprises based on actual technological advantages. Crowberry Capital is dedicated to assisting entrepreneurs with audacious ambitions and businesses that address real issues and have a positive effect. They emphasize their portfolio firms' best interests and have a track record of spotting value before market confirmation. Furthermore, Crowberry Capital sees the market's gender gap as an untapped investment opportunity and believes in inclusion. Their professional staff is committed to assisting businesses in reaching their full potential.
Year of Inception: 2015
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: PortalOne, Sky Mavis, Presail, Speechly, Breyta
SNÖ Ventures primary focus is on investing in early-stage, transformative tech companies in the Nordic region. SNÖ Ventures seeks to help visionary entrepreneurs in Denmark, Norway, Finland, Iceland, and Sweden who are driving innovative initiatives. They look for high-growth firms with the potential to make a big market impact, with a particular concentration on the information technology industry. They provide not just financial assistance, but also strategic advice and industry knowledge to assist portfolio firms.
Year of Inception: 2009
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: Adnavem, Crosser, Nomono, Worldfavor, Oneflow
Spintop Ventures is a prominent investment firm established by a group of renowned digital entrepreneurs, industrialists, and experienced investors. The firm focuses on teams that are driven to develop extraordinary businesses. Spintop Ventures generally invests in creative software-based technology firms from the Nordic region, with the goal of assisting them in becoming leaders in their respective industries. Spintop Ventures utilizes its wide network and skills to give strategic counsel and financing to its portfolio companies. The firm's track record, along with its extensive industry expertise, makes it a sought-after partner for entrepreneurs trying to expand and succeed in the digital area.
Year of Inception: 2008
Stage: Seed, Series A, Series B, Series C
Focus: Sector Agnostic
Notable Portfolio: Sidekick, Controlant, Spectaflow, Kaptio
Frumtak Ventures is a venture capital firm that invests in people and ideas that address real-world challenges and help Iceland advance its reputation for successful innovation. Frumtak has been actively involved in the venture capital market since its inception in 2008, making strategic investments in a variety of sectors. While Frumtak Ventures does not specialize in any one area, it does place a heavy emphasis on investing in firms that have a strong focus on growth and sales in international markets. The fund also emphasizes the importance of companies having a product, customers, and turnover in order to be eligible for investment.
Year of Inception: 1997
Stage: Seed, Series A, Series B, Series C
Focus: Sector Agnostic
Notable Portfolio: Evolytes, Lauf, Tulipop, Tyme Wear, 3Z
The New Business Venture Fund (Nýsköpunarsjóður), established in 2017, is a state-owned investment fund aimed at strengthening and developing the Icelandic venture capital market, as well as fostering startups and businesses in Iceland. Nsköpunarsjóur's aim is to foster innovation, entrepreneurship, and economic growth by providing financing and resources to startups, universities, research institutes, and enterprises. The firm's investments are intended to spur growth, support technical developments, and contribute to the general development of Iceland's startup ecosystem.
Year of Inception: 2004
Stage: Seed, Series A, Series B, Series C
Focus: Technology, Software
Notable Portfolio: Datek, Kogenta, Ardaq, Prediktor, Shepper
Idékapital is an Oslo-based venture capital business that invests in quickly developing B2B technology startups in the Nordics and the United Kingdom. Idékapital provides funding to assist these enterprises in growing and offers strategic guidance to help them navigate hurdles and grasp opportunities. Furthermore, they provide scale-up assistance to businesses, assisting them in becoming worldwide market leaders in their particular domains.
Year of Inception: 1996
Stage: Series A, Series B
Focus: Technology
Notable Portfolio: EdgeTier, Lunio, Mavenoid, Semble
Smedvig Capital is a prominent venture capital firm headquartered in London. They have a track record of effectively partnering with and scaling over 70 startups dating back to 1996. Smedvig Capital, which specializes in leading Series A/B rounds, seeks for and invests in fast-growing firms in the UK, Nordics, and Netherlands. They value tight collaboration with a small number of high-quality teams, as well as strong ties with the founders of the firms in which they invest. Smedvig Capital is noted for its adaptable approach to supporting and advancing long-term aspirations. They frequently invest in firms in numerous rounds, providing capital until the companies achieve their desired exit.
Year of Inception: 2018
Stage: Series A, Series B, Series C
Focus: Technology
Notable Portfolio: Hiber, Eurora, Kilo. Health, PixieRay, Fastspeed
Nordic Secondary Fund is an investment vehicle established in Denmark that is managed by Nordic Secondaries Fund. It is the first and only fund in the Nordic area that focuses only on investing in secondary markets. The fund focuses on Nordic and Baltic startups who have already completed the Series-A stage. They acquire existing holdings in established firms, providing liquidity to current shareholders, and enabling ownership transfers. The fund intends to assist the growth and development of enterprises in the area by concentrating its investments on North Europe.
Year of Inception: 2015
Stage: Seed, Series A, Series B, Series C
Focus: Sector Agnostic
Notable Portfolio: eTactica, SagaNatura, AwareGo, Ymir Technologies
Eyrir Venture Management is the venture capital arm of Eyrir Invest, a global investing firm. The VC is committed to assisting promising enterprises in expanding internationally. Eyrir Venture Management, with an emphasis on value development, provides strategic assistance, financial resources, and networking opportunities to help firms succeed. The business aspires to stimulate innovation, drive market development, and ultimately contribute to the success of its portfolio firms through its experience and broad network.
Angel Investors in Iceland
Angel investors may act as an individual or as a syndicate to fund projects of their preference, so these networks are the best opportunity for you to find a potential Angel with an aligned vision and interests.
Stage: Pre Seed, Seed
Focus: Sector Agnostic
Notable Portfolio: -
The Scandinavian Investment Network is a web-based matching platform for Nordic angel investors and entrepreneurs. This platform was created to boost the local startup ecosystem by providing a variety of features and tools to facilitate investment opportunities. Entrepreneurs may network with potential investors and present their company ideas. In addition, the platform hosts networking and knowledge-sharing events such as luncheons and pitches.
Closing Thoughts on VCs and Angel Investors in Iceland
Iceland's startup ecosystem offers a unique blend of advantages for startups looking to raise funds. From a supportive government and a close-knit startup community, Iceland provides a fertile ground for startups to grow and succeed. In recent years, there have been a growing interest from both Icelandic and foreign parties, with more funding accessible to startups than ever before. By unlocking Iceland's untapped potential, startups have the opportunity to make a global impact while enjoying the beauty and charm of this Nordic oasis.
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