In an exciting development for the European venture capital landscape, Node.vc, a newly established Swedish fund, has successfully closed its first fund with a remarkable €71 million. Positioned as part of a growing movement of “entrepreneurs backing entrepreneurs,” Node.vc aims to fuel innovation in startups across the Nordics and Baltics.
A New Trend in VC?
While it may still be early to declare it a definitive trend, Node.vc joins the ranks of other emerging European VC firms, such as Switzerland’s Founderful and Italy’s Founders Fund. John Elvesjö, managing partner at Node.vc, shares his vision: “I hope it is a beginning trend. Europe has lagged behind the U.S. in operational experience among VC investors.” He emphasizes that while many firms tout founder-led initiatives, the depth of that experience can often be superficial.
Deep Roots in Entrepreneurship
Node.vc is not just another VC firm; its foundation is built on genuine entrepreneurial experience. Elvesjö co-founded Tobii, a pioneering eye-tracking startup that went public in 2015. The firm’s investment team is complemented by 70 limited partners who are also founders, fostering a collaborative environment where mentorship goes beyond mere capital infusion.
The fund’s success is attributed in part to its strategic alliances with institutional investors, including Saminvest, Sweden’s fund-of-funds, and Nordea, a major Nordic bank. This blend of support positions Node.vc favorably as it embarks on its investment journey.
A Unique Approach to VC Operations
Node.vc takes a distinctive approach to its operations, boasting an intentionally oversized team. With eight full-time and eight part-time members, the fund is designed to manage seven startups each year while ensuring that every company receives adequate attention and resources. “We write an average entry ticket of €1.3 million, but we can follow on with up to €10 million per company if needed,” Elvesjö explains.
The firm has already closed three deals and maintains a sector-agnostic stance, although it focuses on three key themes: the future of entertainment, represented by gaming studio Roro; the future of work, with investments in Lemonado and Starhive; and platform technologies, covering areas like fintech, IoT, cloud infrastructure, and machine intelligence.
Leveraging Nordic Strengths
Interestingly, the Node.vc team’s research revealed that the Nordic ecosystem is well-equipped to capitalize on its historical strengths. Elvesjö laughs as he recounts how their extensive research helped crystallize their investment themes: “We realized that the Nordic ecosystem will excel in what it has been good at before.”
Additionally, the recent layoffs among several Scandinavian unicorns may serve as a silver lining for the startup scene. “Talent in the Nordics is more available than it’s been for the last five years,” Elvesjö notes, which positions Node.vc to tap into a rich pool of expertise. With AI tools poised to disrupt various industries, the Nordics are “extremely well positioned to harvest this.”
Looking to the Future
As Node.vc embarks on its mission to support innovative startups in the Nordics and Baltics, it aims to be a catalyst for growth in the region’s dynamic entrepreneurial landscape. With a solid funding base and a dedicated team, Node.vc is ready to make waves in the venture capital scene.
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