Icelandic VC closes $87M fund as country’s startup scene comes of age

Icelandic VC closes $87M fund as country’s startup scene comes of age

Amid increasing ardour in Iceland’s tech ecosystem, Reykjavik-based mostly entirely Frumtak Ventures has closed a $87M fund geared in opposition to local startups. That is the mission capital firm’s fourth fund, following a €57mn predecessor in 2021.

Whereas sector-agnostic, Frumtak Ventures has to this point mostly invested in B2B SaaS startups on the seed or Series A stage.

The new fund will focal point on the intersection of AI, instrument, and deeptech. This might especially purpose historically solid industries in Iceland, comparable to ocean tech, lifestyles sciences, logistics, breeze, strength, and gender equality.

“Whereas the mission capital scene within reason younger compared to dilapidated ecosystems comparable to Silicon Valley, the Icelandic VC funding scene is initiating to garner global attention and for neutral reason,” Andri Heiðar Kristinsson, Partner and Funding Manager at Frumtak, told TNW.


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“Our irregular combination of a highly educated crew, sturdy tech infrastructure, and a custom that prides itself on perseverance makes the country an supreme panorama for funding.”

Frumtak will make investments in startups that time out early traction and have the aptitude to develop into global market leaders of their home.

The firm estimates that the fund will allow 10-15 investments in total, with the preliminary funding size ranging between €1mn and €3mn. The lifetime of the fund is 10 years with a doable three-one year extension. Half of of the capital shall be reserved to practice throughout the growth of the chosen companies.

Growing ardour in Iceland’s scene

In 2023, Iceland attracted the best funding capital per capita among all Nordic countries. This translates to €73 per every of the roughly 382,000 inhabitants. Iceland also held the tip space in 2022.

Whereas the figures would be less spectacular excited in regards to the country’s small inhabitants, rising ardour from foreign traders represents one other indication that the local ecosystem is coming of age. Closing one year, Icelandic startups saw a threefold amplify in foreign funding compared to 2022 phases.

Sharp in Iceland’s VC scene since 2008, Frumtak has invested in a good deal of high-growth companies. These consist of sound simulation startup Treble and medtech Sidekick Neatly being, whose digital therapeutics platform has secured it partnerships with trade leaders comparable to Pfizer and Bayer.

Constant with the CEOs of the two startups, Dr Tryggvi Thorgeirsson of Sidekick Neatly being and Finnur Pind of Treble, Iceland’s strategic quandary offers a sure abet: easy rep admission to to both the European and US markets that facilitates global growth.

“The shut-knit nature of Iceland’s startup scene [also] fosters collaboration and innovation,” further supported by a “solid network” of VC companies and accelerators, Pind told TNW.

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