Stockholm’s tech startup ecosystem is booming and the city is considered to be one among the leading tech hubs in 2019. The growth of the city’s business ecosystem is attributed to the presence of popular fintech companies, creative tech startups, and many others.
Moreover, Stockholm is referred to as the unicorn factory of Europe as it is home to many unicorns such as Spotify, Skype, Minecraft, and a few others. In the past decade, the city has witnessed a surge in venture capital funding thereby resulting in more potential unicorns.
Eventually, Stockholm is one of the most active startup hubs in Europe with huge volumes of investment and a high number of startups per capita among others in the EU. Moving in the right direction, a handful of Stockholm-based startups have received funding in 2019 and here we list them as sourced from Dealroom.
Northvolt
Founders: Peter Carlsson, Paolo Cerruti
Total Funding: €972 million
Founded Year: 2016
Why its hot: Swedish battery startup Northvolt is a notable player in the e-mobility industry. The demand for lithium batteries is on the rise as there is a heavy demand for electric vehicles and electric storage systems. In June this year, Northvolt raised €886 million from Volkswagen Group, Goldman Sachs, AMF, BMW Group, IMAS Foundation, and Folksam Group.
Klarna
Founders: Niklas Adalberth, Sebastian Siemiatkowski, Victor Jacobsson
Total Funding: €791 million
Founded Year: 2005
Why its hot: Klarna, the Swedish payments company provides e-commerce payment solutions for shoppers and merchants. It is unique and provides consumers with payment options that let them enjoy a simple, smooth and safe experience. Klarna secured $460 million (approx €410 million) in an equity funding round, at a post-money valuation of $5.5 billion. With this investment, the company becomes the largest private fintech in Europe and one of the largest private fintech firms globally.
Lendify
Founders: John-Christian Eriksson
Total Funding: €206 million
Founded Year: 2014
Why its hot: Lendify is developing the next-generation bank, which is digital and efficient. It provides access to an online credit platform, which lets consumers with high credit ratings who often take up loans from the traditional banks and look out for better terms. The company operates with the intention to give borrowers fairer conditions and lower interest rates so that they benefit from higher returns.
Lendify secured a total of $170 million (nearly €153 million) in two funding rounds from Insight Investment and credit facilities from DNB and Nordea.
Voi Technology
Founders: Douglas Stark, Filip Lindvall, Adam Jafer, Fredrik Hjelm
Total Funding: €154 million
Founded Year: 2018
Why its hot: Voi Technology is a green mobility company offering an e-scooter sharing service in partnership with cities and local communities. In November, the e-scooter operator from Sweden raised $85 million (€77 million) Series B funding led by Vostok New Ventures with participation from Balderton Capital, Creandum, Project A, JME Ventures, Raine Ventures, Kreos Capital, Inbox Capital, Rider Global, and Black Ice Capital, among others.
Tink
Founders: Daniel Kjellén, Fredrik Hedberg
Total Funding: €110 million
Founded Year: 2012
Why its hot: Tink is Europe’s leading open banking platform that enables banks, fintechs and startups to develop data-driven financial services. Through one API, Tink allows customers to access aggregated financial data, initiate payments, enrich transactions and build personal finance management tools. Tink connects to more than 2,500 banks that reaches over 250 million bank customers across Europe. Founded in 2012 in Stockholm, Tink’s 270 employees serve 14 European markets out of 10 offices.
Earlier this year, Tink bagged €56 million in a funding round led by US-based Insight Venture Partners and existing investors such as Sunstone, Nordea Ventures, SEB and ABN AMRO Digital Impact Fund. This funding is aimed at fueling its expansion.
MatHem
Founders: Tomas Kull, Karolin Kull
Total Funding: €102 million
Founded Year: 2009
Why its hot: MatHem is a pure-play online grocery retailer delivering over half of the country’s households. It is one of the largest online grocery stores and a leading e-commerce firm in the industry. The company focuses on growing further and improve customer relationships. In February 2019, MatHem secured nearly €86 million investment from Kinnevik, a Swedish investment powerhouse.
Aprea Therapeutics
CEO: Christian S. Schade
Total Funding: €101 million
Founded Year: 2003
Why its hot: Aprea Therapeutics is a biopharmaceutical company with research facilities in Stockholm. It is focused on developing and commercialising novel cancer therapeutics that reactivate mutant tumour suppressor protein, p53. The company develops second-generation p53 reactivators. In February 2019, Aprea Therapeutics raised $5.7 million (nearly €5.1 million) Series C funding from Janus Henderson Investors.
Bynk
Founders: Dennis Ahlsén
Total Funding: €76.5 million
Founded Year: 2016
Why its hot: Bynk develops easy-to-use financial tools based on advanced technology for the private economy. It provides customers ample simplicity and flexibility that they want. With Bynk, users can effortlessly place a request to avail loans of up to €28,000 for various purposes. In February, Bynk raised €48 million from LMK Industries and Schibsted to expand its offices across Europe.
Matsmart
Founders: Karl Andersson, Erik Södergren, Ulf Skagerström
Total Funding: €38.6 million
Founded Year: 2013
Why its hot: Matsmart is an online food retailer, which is on a mission to reduce food waste. By providing an alternative route to market for surplus food, the company aims to revolutionise and challenge the perception and consumption of food. In October, Matsmart received SEK182 million (nearly €17.4 million) from LeadX Capital Partners.
Peltarion
Founders: Luka Crnkovic-Friis
Total funding: €34.3 million
Founded year: 2005
Why its hot: Peltarion is dedicated to enhancing the quality of life through Artificial Intelligence. It enables enterprises build and install the most customised AI products and services in an easier, quicker and more affordable manner. It caters its AI solution to over 300 companies including NASA, Tesla, General Electric, Dell, etc. In February, Peltarion secured a funding of €18 million from Euclidean Capital.
Main image picture credits: Tink
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