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Republic of Iceland ’s startup scene ispunching above its weight . That ’s perhaps in part because it kept the 2021 hype in hindrance , but mostly because its tech ecosystem is coming of age . Iceland attracted the most venture upper-case letter per capita ofall Nordic land in 2023 , but that stat is middling skewed by its comparatively small universe of fewer than 400,000 inhabitants . More tellingly , strange co - investments in Icelandic startupsreached a recordin 2023 . In this linguistic context , it bring in sentiency to see VC firms raise more financing .
It aid that Frumtak has a unanimous track record . The firm is n’t disclosing retort , and its third monetary fund is too recent for that , but general partner Andri Heiðar Kristinsson told TechCrunch that “ the 2d fund perform really , really well . ” Since there are only a fistful of VC firm in Iceland , they often co - invest , but Frumtak is more focused on work with world-wide firms investing at the Series A , B or C phase . However , it also gets deal flow from local acceleration programs such as the unity led byKLAK , which Kristinsson co - base .
Most of Frumtak ’s special partners are Icelandic pension funds . “ We were in a very in effect spot that all our be L-P were happy to back us again , ” Kristinsson sound out . As for geographical ambit , he added , Frumtak will back Icelandic founder but “ focus on local innovation with global potential . ”
Because of the res publica ’s low population and ethnic factor , Icelandic startups tend to look overseas early on . For instance , Frumtak portfolio company Sidekick Healthwent globular with its gamified digital maintenance political program , with cooperator such as U.S.-based Anthem .
Frumtak is also willing to induct in company base abroad but pass by Icelandic entrepreneur , such as U.S.-basedActivity Stream , a data platform for the springy amusement manufacture . “ If any of [ Frumtak ’s ] portfolio company is going to be successful , they ’re gon na have to be intend alfresco of Iceland , ” the company ’s CEO Einar Saevarsson told TechCrunch .
As for sector , Frumtak allege it will invest “ at the intersection of software , AI , and cryptical technical school in industries playing on Iceland ’s diachronic metier in areas such as ocean tech and logistics , healthcare , travel , vim , climate , and gender equality . ”
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While sphere - agnostic , Frumtak placed most of its bets over the last 15 years into B2B SaaS startup at the seed or Series A level . Now its focus will be more divers .
One affair that wo n’t modify : Frumtak will stay “ super hand - on , ” Kristinsson say . “ We always take a board seat , we work unrelentingly with our companies , we always say that we want to be the first call for founder , both in good time and in bad time . ”
In a country where venture capital itself is relatively new , Frumtak ’s position is to be run “ by entrepreneurs , for entrepreneurs , ” in the Logos of its managing partner Svana Gunnarsdóttir , a former laminitis herself , like Kristinsson . Their third partner , Ásthildur Otharsdóttir , adds a corporate operator background signal .
Iceland ’s technical school scene skew toward former - stagecoach startup , as does Frumtak , whose name roughly translates to “ early catch . ” But Kristinsson is confident that as the scene matures , more exits will conform to . “ Looking 10 or 20 years forrard , my vision is that we will have fueled some of the biggest listed company in Iceland in the next decades , ” he said .
“ It may vocalize like a cliché , but we ’re an isolated island that had to go through really problematic challenges , some harsh conditions through the hundred . And we aboveboard think that there ’s some sort of entrepreneurial arc . … Even if obviously , we ’re very small , but there ’s something in the DNA that ’s perseverance , dedication , and we ’ve seen that play out pretty well , ” Kristinsson read .
