"Eight different investors wanted to meet us”
The desk frames this commentary as indicative of the ongoing challenges faced by Nordic startups in securing investors, mirroring broader trends in venture capital. Per the full note from Nordea, only a small fraction of startups manage to attract serious interest from investors, which is a universal concern in the entrepreneurial ecosystem. This sentiment highlights the importance of networks and targeted initiatives, like Nordea’s investor speed dating, which aims to streamline connections in a historically challenging environment. Given the context of tighter funding conditions, this initiative reflects a proactive approach to nurturing the Nordic startup landscape, which could lead to more sustainable financial flows into this burgeoning sector.
What the desk is arguing
The struggle for startups to find the right investors underscores a significant bottleneck in the entrepreneurial process. Joonas Tomperi emphasizes the labor-intensive nature of this pursuit, stating that the time spent on investor outreach detracts from customer focus. This is echoed by Vesa Riihimäki, who notes that investors might engage with 100 startups but only find one worth funding. This mismatch speaks to a systemic inefficiency.
The role of networks is pivotal; many startups lack access to potential investors, and initiatives like Nordea's speed dating are crucial in bridging this gap. These match-making efforts are crucial as they offer startups a concentrated channel through which they can potentially secure crucial funding, thereby facilitating growth. This is especially vital in the current environment where traditional venture capital methods may be less accessible
While the commentary celebrates the matchmaking efforts of Nordea, it implicitly rejects the alternative viewpoint that funding issues are primarily due to market conditions rather than a lack of connectivity and support systems. A focus on improving networks may provide a strategic advantage in attracting the right capital in challenging times.
Where it sits in our coverage
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How other firms see it
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What the calendar says
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Key takeaways
- 01Startups face significant hurdles in securing funding due to limited networking opportunities.
- 02Nordea's initiative aims to mitigate these challenges by connecting entrepreneurs with investors.
- 03The entrepreneurial ecosystem benefits from pro-active measures like investor speed dating, which can streamline the fundraising process.
- 04Investor interest remains slim, with reality often showing only one successful match for every hundred attempts.
Market implications
Continued focus on enhancing startup-investor matchmaking could lead to increased venture funding flows in the Nordics, particularly if initiatives demonstrate measurable success in closing funding gaps. Watch for potential shifts in venture capital flows towards Nordic startups as they gain better access to interested investors.
Risks to this view
If investor sentiment shifts due to macroeconomic factors or regulatory changes, it could reverse the progress made by initiatives like Nordea’s. A downturn in capital markets or increased competition for venture deals could hinder startups’ access to funding.
Entrepreneurship "Eight different investors wanted to meet us” 14-06-2021 “There are a lot of similarities between looking for the right romantic partner and looking for the right investor: it’s hard work!,” says entrepreneur Joonas Tomperi. But thanks to Nordea’s investor speed dating, open to startups from all over the Nordics, his long search for the right partner may soon be successful. It is a well-known story: startup meets investor, violins start playing, and the first baby-steps towards growth are taken.
But what if the pair never meet? Joonas Tomperi, CEO and co-founder of the startup “enable:Banking” knows all about the tough search for investor love. “Finding the right investor is hard. It’s very time consuming – and for every minute I spend looking for investors, I have one less to use on our customers,” says the CEO of the small fintech startup, which has five employees, but ambitions to grow. “You need to kiss a lot of frogs to find your prince” And Joonas Tomperi is not alone, says Vesa Riihimäki, Head of Startup & Growth Finland. “The startups’ networks are often extremely limited.
They simply don’t know any business angels or venture capital funds – or who to contact,” he says. For the investors it is hard work as well: “If the investors are in contact with 100 startups, they might be interested in investing in just one of them. For both investors and startups, you could say you need to kiss a lot of frogs in order to find your prince!,” Vesa Riihimäki concludes.
If the investors are in contact with 100 startups, they might be interested in investing in just one of them. For both investors and startups, you could say you need to kiss a lot of frogs in order to find your prince! Vesa Riihimäki, Head of the Finnish Startup and Growth Speed dating open to Nordic startups and investors worldwide This is where Nordea comes into the picture.
With access to startups all over the Nordics and many global investors, Nordea has created a series of online speed-dating events, where the two parties can meet each other quickly and efficiently. Before the speed-dating event, Nordea’s Startup & Growth teams in the four Nordic countries carefully handpick the startups that show the best investment potential. The investors then get to read about the selected companies, so they can choose exactly who they would like to see for a 20-minute meeting.
And it works! “At our latest event we had 200 meetings – and our most popular startup company had 18 meetings,” Vesa Riihimäki tells. What does Joonas Tomperi’s startup do? “ enable:Banking ” makes “open banking” APIs for the financial sector and connected businesses, connecting, for example, ERP systems and solutions for credit scoring, accounting, invoicing and cash forecasting to banks. APIs are programs which enable different systems to exchange information with one another.
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