Stockholm, 13 November 2025 – According to the third annual State of European Angels 2025 report initiated by Nordic Angels in collaboration with Boston Consulting Group (BCG), Sweden’s startup ecosystem continues to demonstrate resilience and innovation leadership, despite a turbulent investment climate across Europe.
According to the new report, Sweden experienced one of the steepest overall declines in venture capital (VC) investment in Europe in 2024 — down 50% year-on-year, compared to a European average decline of 7%. This drop was primarily driven by smaller late-stage investments, which fell 58%, while early-stage investments grew by 15%, signaling the strength of Sweden’s angel and early-stage ecosystem. Sweden ranks fourth in Europe, accounting for 10% of total European climate tech investments — a sector that saw rapid 28% p.a. growth over the last decade.
“Periods like this make investors more selective - but also more strategic,” says Andreas Grape, CEO & Co-Founder of Nordic Angels. “The data shows a clear shift from chasing deals to creating lasting impact. Collaboration and capital pooling among investors is needed now more than ever, and that’s exactly what we’re unlocking at Nordic Angels.”
“Sweden continues to be one of Europe’s most dynamic innovation ecosystems, even in a challenging investment climate. While total VC investment fell sharply, the increase in early-stage activity shows that Swedish angels and early investors remain active and optimistic about the long-term potential of the country’s startups,” says Nicolas Schmidt, Managing Director & Partner at BCG in Stockholm.
Despite the decline in total VC value, Sweden remains the largest Nordic market, accounting for around 5% of all European VC investments. Stockholm continues to solidify its position as a leading AI and energy innovation hub, home to emerging tech powerhouses such as Lovable, Legora, and Sana.
Sweden Punching Above Its Weight in Industrial and Climate Tech
According to the report, Sweden significantly outperforms its size in sectors where Europe holds structural advantages. The country ranks among the top five markets in Europe for both Industrial Tech and Climate Tech investments.
Industrial Tech: Sweden is the second-largest market in Europe for industrial tech VC, representing 16% of total European investments, second only to the UK.
Climate Tech: Sweden ranks fourth in Europe, accounting for 10% of total European climate tech investments — a sector that saw rapid 28% p.a. growth over the last decade.
“The Nordics are proving that resilience and innovation can coexist,” says Ash Pournouri, Executive Chairman & Co-Founder of Nordic Angels. “What’s emerging here will define Europe’s future industries. Now is the time for angels to lead, scale impact, and back the ideas that move society forward.”
A European Context: Angels Are Scaling and Professionalizing
Across Europe, the angel investment landscape continues to grow and consolidate into larger, more professional networks, with average deal sizes having risen by 7% per annum since 2020.
Overall, and despite easing inflation and lower interest rates, global uncertainty remains at a decade high, with investors shifting towards safer, late-stage bets both globally and in Europe. While this shift underscores a cautious sentiment in the market, Europe’s strong fundamentals provide grounds for optimism. Foreign investor participation in European VC increased from 36% in 2023 to 45% in the first half of 2025, driven mainly by North American investors, whose share rose from 19% to 27%.
To unlock the full potential of its early-stage ecosystem, the report calls for greater risk-taking—backing exceptional founders with redefining ideas—and enhanced collaboration both across the continent and between angels and VCs, enabling more startups to scale successfully from within Europe.
About the Report
The State of European Angels 2025 is a comprehensive annual analysis of Europe’s early-stage and angel investment landscape. Initiated by Nordic Angels in collaboration with Boston Consulting Group (BCG), the report combines quantitative data from leading financial databases with qualitative insights from prominent investors and ecosystem leaders across the continent.
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Press Contact:
Emma Lilliequist
emma@nordicangels.com
+46708268511
About Nordic Angels
Nordic Angels is an independent initiative with the mission to unite angel investors in a high-trust network, catalyzing collaboration, sparking innovation, and building a more resilient economy. Founded in 2020, Nordic Angels has grown to become the largest investor network in the Nordics.