Nordic energy startups defy investment slump
Nordic energy startups are securing major funding despite a wider climate tech VC downturn, with some seeing over 500% investment growth.
A cohort of climate tech startups is propping up the Nordic tech ecosystem. This comes at a time when the broader vertical is falling out of favour with many venture capital investors. The source of this information is a report from Sifted.
Several companies in the region have posted remarkable investment growth figures. The clean energy-focused venture capital firm Pale Blue Dot's data for the first quarter shows that climate tech investment in the Nordic and Baltic countries fell by 42%. Despite this overall decline, specific energy startups are powering ahead.
Standout performers defy the trend
A number of Nordic energy startups have reported massive year-on-year investment increases. The report attributes contested claims about market performance to the companies themselves or their investors.
| Company | Reported Investment Growth |
|---|---|
| H2 Green Steel | 865% |
| Aira | 328% |
| Heart Aerospace | 509% |
| Einride | 532% |
| Volta Trucks | 306% |
| Polarium Energy Solutions | 30% |
H2 Green Steel, a green steel producer, reported an 865% increase. Heart Aerospace, developing a hybrid-electric aircraft, reported a 509% rise. Einride, an electric and autonomous trucking company, reported 532% growth. Volta Trucks reported 306%. Polarium Energy Solutions reported a more modest 30% increase.
Investor perspective on the sector
Fredrik Hjelm, co-founder and CEO of Einride, commented on the strategic focus, noting that in the early days, it was more about the vision and the purpose of what they were doing.
Pale Blue Dot's managing partner, Heidi Lindvall, provided further context on the investment climate. She noted that while climate tech investment in the Nordics and Baltics was down 42% in Q1, the energy sub-sector within it is performing strongly. She stated that if you look at the 42% drop in the total, but then you see the 73% increase in energy, that tells a story.
She elaborated on the investor mindset, explaining that energy is a massive market and a deep-tech venture where building hardware takes a long time and is capital intensive.
Additional growth stories
The report highlights other companies experiencing significant growth. This includes Northvolt, which reported a 998% increase and an €11bn valuation. It also mentions the battery materials company Altris (formerly FerroSilva) and one of Norway's largest venture rounds for a company called Otovo, which reported a 358% increase.
Tommy Andersen, managing partner at byFounders VC, offered a final observation on the Nordic startup environment, saying that in the US, the narrative is that we are in a bubble.
