Leo Capital, an early-stage venture capital firm, has successfully closed the first round of its €25 million Nordic Fund, which is aimed at investing in approximately 25 business-to-business (B2B) tech startups across the Nordic region. The fund marks a significant step for Leo Capital as it expands its footprint in Europe, particularly in the thriving Nordic startup ecosystem.
The capital for the Nordic Fund has been primarily sourced from Business Finland Venture Capital, alongside a mix of returning and new investors from various parts of the world. This diverse investor base underscores the growing global interest in the Nordic tech scene, known for its innovation and strong entrepreneurial culture.
The fund is designed to support Nordic startups from the pre-seed stage onwards, with initial investments ranging between $250,000 and $400,000 per startup. Leo Capital’s strategy with this fund is to identify and back early-stage companies with the potential to scale globally, particularly those that are pioneering in B2B technology.
“We started seeing a lot more deal flow from Europe a couple of years ago. At the same time, many of our other funds were increasingly focused on the India-US corridor. We realised that the India-Europe corridor is currently under-invested, and we saw an interesting opportunity to be first movers in this space,” said Shwetank Verma, co-founder and managing partner at Leo Capital, in an interview with The Economic Times.
Since 2021, Leo Capital has been actively investing in European startups, including Apica, Atoa, and Eir. The firm has recognized the potential of European founders to build strong global companies, citing success stories like Spotify, Nokia, Zendesk, and Unity as examples of the region’s innovative capabilities.
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Founded in 2018 by Rajul Garg and Shwetank Verma, Leo Capital is based in Singapore and operates three existing APAC funds that focus on early-stage technology companies, from seed to pre-Series A stages. The firm’s portfolio comprises around 60 early-stage companies, demonstrating its experience and commitment to nurturing startup ecosystems across different geographies.
“Our Nordic fund continues Leo Capital’s proven strategy of investing in the most capable, ambitious, and resilient founding teams and helping them to successfully scale across borders,” said Henry Goodwin, partner at Leo Capital. “It is these founders that we are looking to partner with, combining their vision and dynamism with our own networks, resources, and years of cross-border experience to help supercharge their trajectory and realise their global ambitions.”
The Nordic region, encompassing countries like Sweden, Denmark, Norway, and Finland, has been recognized for its vibrant startup culture, particularly in sectors like fintech, cleantech, and deep tech. With this new fund, Leo Capital aims to leverage its cross-border expertise to foster the growth of innovative B2B startups in these markets.
By focusing on the under-invested India-Europe corridor, Leo Capital is positioning itself as a pioneer in a space that holds significant potential for growth and collaboration. The firm’s strategy is to act as a bridge between the robust tech ecosystems of India and Europe, facilitating the exchange of ideas, talent, and capital.
As the fund begins its investment activities, it is expected to catalyze the growth of several high-potential startups in the Nordic region, further solidifying the region’s reputation as a hub for global tech innovation. With the backing of experienced investors and a clear focus on early-stage B2B tech, Leo Capital’s Nordic Fund is set to play a pivotal role in shaping the future of the European startup landscape.
