REGIONAL ROUND-UP
AFRICA APAC EUROPE MIDDLE EAST NORTH AMERICA
THE VALUE OF HELSINKI ’ S START-UP ECOSYSTEM TRIPLED IN SIX YEARS
The Helsinki region is a larger area than its size when comparing European start-up ecosystems . The value of Helsinki ’ s start-up ecosystem has tripled since 2015 , and the combined value of start-up companies exceeds € 25 billion . This can be seen in a recent report published by NewCo Helsinki , the city of Helsinki ’ s new entrepreneurship centre , and Dealroom , a Dutch start-up . Dealroom is a leading provider of start-up data with some of the world ’ s most important cities and investment companies as customers .
Attractive Helsinki draws venture capitalists
In the report , Helsinki ’ s start-up ecosystem is shown to be very attractive . The average annual growth rate of investments in start-ups has been 32 % over the last five years . So far in the best year , 2020 , funding was € 916 million – more than 57 % more than the previous year . Among European ecosystems , Helsinki is growing at the fourth fastest pace in capital investments . In turn , impact investments have tripled over a period of five years .
“ Helsinki aims to be the most functional city in the world . Start-ups and scale-ups play an important role in achieving this aim . We want to promote entrepreneurship and growth in every possible way . We are delighted with how companies have coped with the Coronavirus pandemic . Helsinki ’ s start-up ecosystem has an incredible sense of doing things and an attitude that makes anything possible ,” said Marja- Leena Rinkineva , Director of Economic Development for the City of Helsinki .
According to the report , domestic investments have been relatively low when compared with the rest of Europe or the United States . This is also emphasised in comparisons with other ecosystems , such as Stockholm .
The number of financing rounds saw an increase up to 2016 , after which the trend has been declining .
Helsinki has a particularly strong gaming ecosystem
When comparing Helsinki ’ s start-up ecosystem with other Nordic countries , it takes second place in both the number of financing rounds and new financing .
According to the report , the gaming industry in Helsinki is remaining particularly strong , and the gaming industry ecosystem is the third most important in Europe , right after London and Paris . However , food and business app software start-ups collect the most financing .
Helsinki holds eighth place in Europe in the number of unicorn start-ups , i . e ., startups worth more than US $ 1 billion . There are four start-ups worth over US $ 1 billion in Helsinki , the most recent of which are Wolt and HMD Global .
There are eight potential new unicorns , i . e ., start-ups worth € 200 – 800 million , in Helsinki . Helsinki is thus ranked in comparisons before many larger European cities . In terms of diversities , Helsinki still has things to do , just like the other Nordic countries : only 20 % of start-ups have at least one woman as one of their founders .
But what matters have contributed to the success of the Helsinki start-up ecosystem ? The world-famous Slush event has created enthusiasm and has accelerated the growth of the ecosystem . The road for entrepreneurs has been paved with both start-up entrepreneur permits and Business Finland ’ s financing programmes . x
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