The report provides an analysis of the venture investment activity in Swedish private tech companies during 2017. By Nordic VC firm Industrifonden.

1. Swedish Tech Funding
Report 2017

2. Industrifonden is a Nordic evergreen venture capital investor with $600M
in assets, partnering with early-stage tech and life science companies
with international potential. Industrifonden-backed companies include
Qlik, Arcam, Fishbrain, Soundtrack Your Brand, Oatly and Funnel
#swedishtechreport
@industrifonden
industrifonden.com

3. 3
Another big year for Swedish tech as investors
double down
2017 turned out to be a big year for Swedish
tech, both in terms of capital raised and number of
rounds. Removing Spotify’s 2016 outlier round from the
equation, 2017 saw nearly twice the capital invested into
Swedish tech startups.
Interestingly, despite continued growth of invested capital
and an upward shift of round sizes, the share of funding
rounds with participation from international investors
decreased. This is the lowest share since we started this
tracking in 2015 and points to a strong domestic funding
climate, even beyond Series A’s. Of the international
investors that did invest in Sweden, UK investors were
the most bullish and claimed the top spot for the first
time, racing past their American peers.
Following a number of successful local tech exits and
IPOs, domestic investors became increasingly bullish on
Swedish tech. This was manifested by the fact that some
of the largest growth rounds saw participation only from
domestic investors.
Another group of investors that showed increasing
interest in tech startups was corporations. In 2017
corporate investors increased their share by nearly 60%
compared to 2016 by participating in more than 10% of
all funding rounds. Corporates in finance and media
were the most active, which corresponds well to the
sectors that so far have been particularly challenged by
disruptive tech startups.
Angel investors remain crucial to the ecosystem,
participating in more than half of all deals and dominating
in early stage financing. In this edition we have taken a
closer look at the active angel investors. An analysis of
the 20 most active angel investors in Sweden reveals
that there is plenty of smart money to go around, as a
vast majority of the investors are former founders.
Together they are bringing experience from raising VC
rounds and creating billions in exit value.
OVERVIEW
442Funding rounds (2016: 402)
$1.2B(SEK 10.5B) raised (2016: $1.6B)
KEY FIGURES
571Active investors (2016: 576)
Björn Bergström
Tech Investor
Industrifonden

4. 4
Median deal sizes increasing above $1M –
investment up considerably after a slow summer
INVESTMENT ACTIVITY
Note: The outlier adjusted graph excludes Spotify’s funding rounds in Q2 2015 and Q1 2016 to provide a more comparable trend line than the total investment graph
$M $M$M Deal count
1,5
1,4
0,8
0,7 0,7 0,7
1,2
0,8
1,1 1,1
1,0
1,2
0
20
40
60
80
100
120
140
0
1
2
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Median deal size Deal count
102
700
233
104
1110
134 179 211
277 304
206
439
0
200
400
600
800
1000
1200
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Total investment*
102
169
233
104 117 134
179
211
277
304
206
439
0
50
100
150
200
250
300
350
400
450
500
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Total investment, outlier adjusted*

5. 5
INVESTMENT ACTIVITY
A busy last quarter of the year broke the
summer’s downward trend
Deal count
Deal size
00
8
11
2 1
17
12
10
3
26
10
5
3
31
21
1 1
39
31
4
1
60
27
6
41 41
9
61
45
11
1
50
42
14
1
45 45
10
2
41
31
11
54
50
7 7
0
10
20
30
40
50
60
70
≤$1M $1.1 - 5M $5.1 - 25M >$25M
2015 - Q1 2015 - Q2 2015 - Q3 2015 - Q4 2016 - Q1 2016 - Q2 2016 - Q3 2016 - Q4 2017 - Q1 2017 - Q2 2017 - Q3 2017 - Q4
0

6. 6
INVESTOR ACTIVITY
-1%change in active investors 2017 compared to 2016
22%of the active investors participated in at least two
funding rounds during 2017 (2016: 23%)
105
146
310
349
340
317
0
50
100
150
200
250
300
350
400
Q1-Q2 2015 Q3-Q4 2015 Q1-Q2 2016 Q3-Q4 2016 Q1-Q2 2017 Q3-Q4 2017
Active investors

7. 7
Angels and VCs remain most active
investors, corporates increasingly active
Investor type by
% of deals 2017
INVESTOR ACTIVITY
52%
21%
14%
7%
4%
3%
Angel
VC
Investment firm, other
Corporation
Corporate VC
Accelerator
37%
47%
51%
29%
60%
20%
56%
23%
56%
20%
48%
22%
0%
25%
50%
75%
100%
Angel investors VC
Share of deal count by investor type
Q1-Q2 2015 Q3-Q4 2015 Q1-Q2 2016 Q3-Q4 2016 Q1-Q2 2017 Q3-Q4 2017

8. 8
FOREIGN INVESTMENT ACTIVITY
Domestic investors continue to dominate
funding rounds
42%
25%
18%
21%
15% 16%
0%
25%
50%
75%
100%
Q1-Q2 2015 Q3-Q4 2015 Q1-Q2 2016 Q3-Q4 2016 Q1-Q2 2017 Q3-Q4 2017
Funding rounds with foreign participation (%)
29
27
32
47
33
35
Q1-Q2 2015 Q3-Q4 2015 Q1-Q2 2016 Q3-Q4 2016 Q1-Q2 2017 Q3-Q4 2017
Funding rounds with foreign participation (count)

9. 9
FOREIGN INVESTMENT ACTIVITY
…as also later stage funding is introduced to
domestic-only rounds
Deals with foreign
participation 2017 (%)
Deal count
6%
15%
50%
70%
0
20
40
60
80
100
120
140
160
180
200
0%
25%
50%
75%
100%
≤$1M $1.1 - 5M $5.1 - 25M >$25M
Foreign participation % Total deal count

10. 10
While total foreign investment decreased, UK
investors increased their share to claim the top spot
FOREIGN INVESTMENT ACTIVITY
33%
25%
19%
10%
7%
6%
Foreign participation 2015
USA
UK
RoW
Germany
Finland
Denmark
29%
18%
18%
10%
9%
7%
6%
4%
Foreign participation 2016
USA
UK
Rest of World
Denmark
Germany
Norway
Finland
China
32%
23%
18%
8%
8%
8%
4%
Foreign participation 2017
UK
USA
Rest of World
Germany
Denmark
Norway
Finland

11. 11
VERTICALS
Top 2 verticals by deal count
FinTech
13%
Enterprise Software
11%
FinTech remained hottest sector, while SaaS claimed
the runner up position

12. 12
FUNDRAISING TRENDS
The rundown on Sweden’s most active angel investors 2017
Executives
10%
In the spotlight: Top 20 angel investors
4.5Average no. of investments during
2017
71%
Founders
Professional backgroundInvestment data
Other
Educational background
67%
24%
9.5%
Tech / Engineering
Business
Other
19%
33%have founded a VC-backed company

13. 13
METHODOLOGY
What’s included
• This report covers disclosed venture investments in
Swedish private tech companies
• Analysis primarily based on proprietary database with
1000+ funding rounds
• Both first-time and follow-on investments are included
• Deals are tracked in SEK but reported here in USD. If
originally reported in other currencies, conversion is based
upon exchange rate per date of disclosure. Aggregate
figures are subject to change due to currency fluctuation
What’s not included
• Investments in life science, med tech, bio tech, retail,
and consulting
• Secondary transactions, investments in subsidiaries and
M&A transactions
• Equity crowdfunding and investments in public
companies of any kind, including listing rounds in
conjunction with IPO’s
• Grants, bonds, bank loans and any other types of
funding that is not intended to result in ownership
An end-note to keep our lawyers happy: The information contained in this report has not been independently verified as to its accuracy. No representation or warranty, express or implied, is given by Industrifonden or any of its
directors, partners, officers, affiliates, employees, advisers or agents as to the accuracy or completeness of the contents of this report or any other document or information supplied or any opinions or projections expressed
herein or therein, nor is any such party under any obligation to update the report or correct any inaccuracies or omissions in it which may exist or become apparent.