The success of FInnish startups has sparked a surge in venture capital investment, further fueling the country’s thriving startup ecosystem. In 2024 alone, startups in Finland secured $881 million in VC funding, with Helsinki leading at $586 million, followed by Oulu at $295 million, according to Dealroom data. Major funding rounds included Silo AI’s $665 million acquisition by AMD, ŌURA’s $200 million Series D at a $5.2 billion valuation, Convion’s $72 million acquisition by HD Korea Shipbuilding & Offshore, ICEYE’s $32.5 million debt financing, and Onego Bio’s $27 million Series A.
Deeptech Leads, but AI and Food Tech Gain Traction
While deeptech accounts for 30% of total funding, AI startups make up just 12%. A standout example is Flow Computing, leveraging Finland’s €3.2 billion research infrastructure for R&D while positioning commercial teams in lower-cost markets. Meanwhile, food tech is on the rise, evidenced by Onego Bio’s €27 million funding round. In contrast, clean tech investments fell 22% in 2024, despite Finland’s strong sustainability ranking.
International Founders Drive Funding Success
A recent report from Maria 01, one of Europe’s leading startup hubs, highlights a striking trend: startups with international founders raised nearly 60% of all funding secured by Maria 01 companies. The report reveals that Maria 01 startups collectively secured €87 million across 37 rounds, with notable investments going to Swappie (€17M), Bit Odd (€17M), Datacrunch.io (€13M), Wamo Solutions OY (€5M), and Collo (€5M). Over a third (36%) of Maria 01 startups have at least one international founder, showcasing Finland’s appeal to global entrepreneurs.
Why International Teams Attract Larger Investments
International founders bring crucial cross-border networks that align with Finland’s export-driven economy. Superhero Capital’s €50 million fourth fund, for example, focuses on globally scalable teams, covering all Baltic states. Foreign capital plays a major role in the ecosystem, accounting for 65% of Finland’s 2022 VC investments, making multinational market entry a key factor for investors.
VCs prioritize two critical elements: technical excellence and global scalability. International teams naturally demonstrate market expansion potential, reducing investment risk. Successful funding stories like Aiven’s €200 million round and Wolt’s €440 million raise underscore how cross-border teams attract high-growth capital. Data confirms this advantage, with international-led startups raising 42% larger Series A rounds on average. In 2024, early-stage investments totaling €137 million heavily favored teams with multinational customer reach.
The Impact of Cross-Border Talent
Maria 01’s annual Impact Report confirms that startups with international teams secured larger funding rounds in 2024. The Finnish Venture Capital Association (FVCA) supports this finding, reporting €137 million in VC investments during the first half of the year, maintaining 2023’s total funding momentum at €871 million.
International founders hail from diverse regions, primarily Europe, Asia, and South America. Several founders shared insights on how global talent fuels their success:
- Timo Valtonen, CEO & Co-founder, Flow Computing: “Our team spans five nationalities—Finnish, Italian, Hungarian, British, and American—operating across five countries.”
- William Hammersley, COO & Co-founder, Supersight Oy: “Supersight is 87.5% international. Our founding team includes a Finn, a Brit, and an Italian.”
- Jack Parker, CEO & Co-founder, AIATELLA: “We are 75% international.”
- Suvi Haimi, CEO & Co-founder, Kuurai: “Our team has four different nationalities, with three out of seven being non-Finns, though all are based in Helsinki.”
Government Support Fuels Startup Growth
Finland actively fosters international entrepreneurship through initiatives like Business Finland, providing funding and investor connections. Startup hubs and accelerators, such as Maria 01, create a supportive environment, while the Startup Permit program offers a streamlined two-year residence permit, making it easier for international founders to establish and grow businesses in Finland.
Does Internationality Equal Diversity?
While diverse teams bring fresh perspectives, internationality appears to be the greater competitive advantage in Finland. Founders acknowledge the benefits of being globally positioned but note that funding is not solely based on diversity:
- Jack Parker: “Hard to say if we got more investment due to an international team, but our lead investor selects for diversity.”
- Timo Valtonen: “We secured pre-seed funding as an all-Finnish team, but investors believed in our plan to build an international team.”
- Suvi Haimi: “Our diverse background contributed significantly to our first funding round.”
Despite challenges like language barriers and networking difficulties, Finland’s trust-based society fosters collaboration. Startup programs now offer language support and networking events to integrate international founders into the business ecosystem.
The Gender Gap in Finnish Startups
While international founders thrive, gender disparity remains a challenge. Only 15% of Finnish startups have at least one female founder, and these teams receive just 15.4% of funding rounds. Maria 01 is addressing this with a new initiative supporting visionary female and minority founders. The program provides free workspace for up to three months, reserving 50% of spots for diverse teams.
Suvi Haimi on gender diversity: “Two of our six co-founders are women, one serving as CEO. This diversity has helped us identify growth opportunities and define a unique value proposition.”
The Future of Finnish Startups: A Global Outlook
Despite its strengths, Finland’s startup ecosystem faces challenges. A small domestic market, high taxation, and labor costs can hinder scalability. Many startups must expand internationally early on, sometimes causing investor hesitation due to limited domestic traction.
Yet, Finland remains a leader in sustainability-driven innovation, with breakthroughs in clean tech, food tech, and AI. Events like Slush attract global talent and investors, ensuring Finland’s position as a hub for internationally led startups.
With continued government support, growing international networks, and increasing investment in diverse teams, Finland’s startup ecosystem is well-positioned for global success.
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