Industrifonden's Swedish Tech Funding Report Q1-Q2 2017 provides an analysis of the venture investment activity in Swedish private tech companies during the first six months of 2017.

1. Swedish Tech Funding
Report Q1-Q2 2017

2. Industrifonden is a Nordic evergreen venture capital investor with $500M in
assets, partnering with early-stage tech and life science companies with
international potential. Industrifonden-backed companies include Qlik, Arcam,
Soundtrack Your Brand, Fishbrain, Qapital and Funnel
#swedishtechreport
@Industrifonden
www.Industrifonden.com

3. 3
Disrupted bankers and digitized doctors –
2017 keeps the fire burning
In the first half of 2017 we experienced a continued
growth in deployed capital, while last year’s strong
increase in number of deals leveled off. This was
primarily driven by a slight decrease in seed rounds and
an uptick in Series A and B rounds.
Interestingly, despite the continued growth of invested
capital and the upwards shift of round sizes, the share of
funding rounds with participation from international
investors decreased to 15%. This is the lowest share
since we started this tracking and points to a strong
domestic funding climate, even for bigger size tickets
beyond Series A rounds. 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.
Just like in previous years, the most popular sector for
venture funding was FinTech which cemented its position
in the top. More interesting to note, however, was this
year’s runner-up sector Digital Health, which has risen
from being virtually non-existent just a few years ago to
now gaining massive interest. This was manifested in Q1
through AMRA’s $9M funding from investors including
Pfizer Ventures, Industrifonden and Novo Nordisk, and in
Q2 by Kry and MinDoktor’s $20M+ rounds from investors
including Accel, Index Ventures and EQT Ventures.
To peg companies up for coming growth rounds, angel
investors remain crucial to the ecosystem and in this
edition we have taken a closer look into the space. 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
massive VC rounds and creating a combined $15+ billion
in exit value.
OVERVIEW
222Funding rounds (Q3-Q4 2016: 224)
$560M(SEK 4.9B) raised (Q3-Q4 2016: $390M)
KEY FIGURES
340Active investors (Q3-Q4 2016: 349)
Björn Bergström
Tech Investor
Industrifonden

4. 4
Stabilized levels in number of rounds –
continued increase in invested capital
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
102
700
233
104
1110
134 179 211
277 281
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
Total investment*
102
169
233
104
117
134
179
211
277 281
0
50
100
150
200
250
300
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Total investment, outlier adjusted*
1,5
1,4
0,8 0,7
0,7 0,7
1,2
0,8
1 1
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
Median deal size Deal count

5. 5
INVESTMENT ACTIVITY
Early stage has stabilized after previous years’
explosive growth – later stage sees slight increase
8
11
2 1
19
15
6
2
26
10
4 3
32
20
1 1
41
29
4
1
62
27
4
42
40
9
61
47
9
1
50
44
12
1
45
43
10
1
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
Deal count
Deal size
00

6. 6
INVESTOR ACTIVITY
-3%Change in active investors Q1-Q2 2017 compared to
Q3-Q4 2016
15%Of the active investors participated in at least two
funding rounds during Q1-Q2 2017
105
146
310
349 340
0
50
100
150
200
250
300
350
400
Q1-Q2 2015 Q3-Q4 2015 Q1-Q2 2016 Q3-Q4 2016 Q1-Q2 2017
Active investors

7. 7
Angel investors and VCs remain most
active backers of tech startups
Investor type by
% of deals
Q1-Q2 2017
INVESTOR ACTIVITY
37%
47%
51%
29%
60%
20%
56%
23%
56%
20%
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
56%
20%
12%
6%
3% 3%
Angel
VC
Investment firm, other
Corporation
Corporate VC
Accelerator

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

9. 9
FOREIGN INVESTMENT ACTIVITY
…even beyond seed stage where foreign
investors typically enter
5%
16%
45%
100%
0
10
20
30
40
50
60
70
80
90
100
0%
25%
50%
75%
100%
≤$1M $1.1 - 5M $5.1 - 25M >$25M
Foreign participation % Total deal count
Deals with foreign
participation (%)
Deal count

10. 10
While overall foreign investment slowed, UK
investors claimed top spot after doubling their share
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
38%
18%
8%
8%
6%
6%
4%
4%
4% 4%
Foreign participation Q1-Q2 2017
UK
USA
Norway
Rest of World
Denmark
Finland
Netherlands
Germany
Spain
Iceland

11. 11
VERTICALS
Top 2 verticals by deal count
FinTech
13%
Digital Health
10%
FinTech remained hottest sector, while Digital Health
claimed the runner up position for the first time

12. 12
FUNDRAISING TRENDS
The rundown on Sweden’s most active angel investors Q1-Q2 2017
Executives
10%
In the spotlight: Top 20 angel investors
3Average no. of investments during
Q1-Q2 2017
60%
Founders
Professional backgroundInvestment data
Artists & Athletes
Educational background
65%
30%
5%
Tech / Engineering
Business
Other
Previous achievements
$15B+Total realized exit value during the angel
investors’ active operational careers
30%
35%Have founded a VC-backed company
35%Of the top 20 angel investors also
featured in the top 20 in 2016 and / or
2015

13. 13
METHODOLOGY
What’s included
• This report covers disclosed venture investments in
Swedish private tech companies
• Analysis primarily based on proprietary database with 800+
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.