Venture Capital Statistics - 2019
This report presents statistics on formal venture capital (VC) investments in Swedish companies in the period 2009-2019. The statistics are based on data from the Swedish Private Equity & Venture Capital Association (SVCA) in collaboration with Invest Europe. The data use funds’ own classification of portfolio companies into broad sectors and development phases (seed, start-up, launch and expansion). The statistics are broken down between three types of VC fund: Swedish government funds, Swedish private funds and foreign funds.
Since the data are updated and revised each year, the numbers presented in these annual statistical reports from Growth analysis (Tillväxtanalys) may differ. For reasons of systematic non-response and confidentiality, it is not possible to identify and follow up all portfolio companies.
VC investments in Swedish portfolio companies down slightly in 2019
During the period 2009-2019, the average annual investment volume was SEK 2.7bn, and the lowest was SEK 1.7bn in 2015. After a sharp increase in 2018, investments stabilised in 2019 at a slightly lower level (SEK 3.79bn).
Decrease in 2019 due to much lower investments from foreign funds
Foreign funds reduced their investments by 19.7% in 2019, while Swedish private and government funds increased theirs by 16%. Foreign funds invested more than Swedish private and government funds combined in 2018, whereas Swedish private funds invested the most in 2019. All in all, Swedish private funds invested SEK 1,730m, foreign funds SEK 1,433m and government funds SEK 626m. The results show that Swedish private funds continued to increase their investments in Swedish portfolio companies at a rapid rate, while foreign funds’ investments stalled. The government remains the largest investor in portfolio companies in the seed phase, while investments by foreign and Swedish private funds are very important later on, especially in the start-up and launch phases.
ICT and consumer products the hottest sectors in 2019
The three largest sectors – information and communication technology (ICT), life sciences and consumer products – accounted for 76% of total VC investments in 2019, down from 91% in 2018. This means that the degree of concentration decreased, with more investment in other sectors, above all business and industrial products.
Much less invested in life sciences in 2019
VC investments in life science companies fell by SEK 743m from 2018 to 2019, largely as a result of reduced investments by foreign funds.
More invested in cleantech in 2019
Interest in investing in environmental technologies (cleantech) grew in 2019. After peaking in 2008 at SEK 700m, cleantech investments have dropped off significantly. In 2007-2011, many Swedish private funds invested in this area, but since 2013 it has mainly been government funds that have invested in these companies. In 2018, Swedish government funds accounted for almost all investments in cleantech. Total investments in this area climbed from SEK 56m in 2018 to SEK 122m in 2019, thanks mainly to increased investments by foreign funds. The volume of investment is still low in comparison to the peak years of 2008 and 2009, but 2019 was a marked improvement over the previous four years.
40% of portfolio companies first-time recipients
In 2019, 129 of the portfolio companies identified, or 40%, received VC investments for the first time. This is 8 percentage points lower than in 2018.
VC still concentrated in the big cities
There were no major changes in the distribution of investments between different types of municipalities from 2018 to 2019, and they were again concentrated in metropolitan areas (88%).
Venture Capital Statistics - 2019
Serial number: Statistik 2020:06
Reference number: 2020/29