Risk Capital Crucial for the Global Growth of Swedish Startups

“We’ve observed among our entrepreneurs nationwide that it is very challenging, both in the early stages, to find the initial risk capital, but also in the later stages, even more challenging to find the necessary capital to scale up,” says Stina.

Factors such as a weak currency and the global economic environment are causing investors to adopt a more cautious approach, making safer and short-term investments. Stina emphasizes that investors are keeping their money inactive and hesitating to make changes to their existing investments at the moment.

SISP – Swedish Incubators and Science Parks estimates about half of the approximately 7,000 startup companies in Sweden are facing extremely tough conditions. Access to risk capital is essential for the growth and global influence of Sweden’s export-oriented businesses.

“Without access to risk capital, there’s a risk that we won’t have any new export-oriented companies that uplift Sweden internationally in 5-10 years,” says Stina.

The segment also featured Jenny Keisu, CEO of X Shore, who acknowledges the formidable challenge of securing capital, even for well-functioning companies near profitability with active production customers, such as her own.

“The world’s green transition demands substantial investments in hardware—new vehicles, new infrastructure, new technology. It is precisely in these areas, most affected, that we could shape Sweden’s next industry and secure prosperity for generations to come,” she concludes.

Click here to watch the full segment (in Swedish)