According to TechCrunch, the Nordic startup ecosystem is booming with standout companies like Sweden’s Lovable alongside established names Klarna and Spotify. The region’s startups received over $8 billion in venture investments in 2024 alone, with the entire ecosystem now valued at half a trillion dollars. Dennis Green-Leiber, founder of AI company Propane, attributes this success to the region’s social safety net that lets young people take risks without fear. He’s been building in the ecosystem for 15 years and says he’s never seen anything like current growth levels. Government funding plays a crucial role in supporting founders, while the area becomes a hub for deep tech and AI development.
Why now? And why so fast?
Here’s the thing about startup ecosystems – they don’t just appear overnight. The Nordics have been quietly building for years, but something has clearly shifted. Green-Leiber says the region might be “a few years behind” other major tech hubs, but they’re “moving tremendously a lot faster.” That’s the advantage of being later to the party – you can learn from others’ mistakes and accelerate rapidly.
The social safety net explanation makes perfect sense when you think about it. How many brilliant ideas never get built because people are terrified of failure? In places where healthcare, education, and basic needs are covered, founders can swing for the fences without worrying about ending up homeless. It’s creating a generation of “way more bullish” founders who aren’t afraid to take ownership.
The deep tech advantage
While Silicon Valley chases the next consumer app, the Nordics are diving into deep tech and AI in a serious way. This isn’t just about making another social network – we’re talking about fundamental technology that could reshape industries. The region’s strong engineering talent and collaborative approach seem perfectly suited for this kind of complex innovation.
And let’s be honest – when you’ve already produced companies like Spotify and Klarna, you’ve proven you can build globally competitive tech. That success breeds more success, attracting talent, capital, and attention. It creates a virtuous cycle where each win makes the next one more likely.
Are we in an AI bubble?
Green-Leiber’s take on the AI question is refreshingly honest – he doesn’t know if we’re in a bubble. “There’s tons of opportunities which haven’t been explored,” he says, while acknowledging that “some people are just putting money in bad stuff.” But that’s the nature of venture capital – you make big bets knowing some will fail spectacularly.
The real question is whether the Nordics can maintain this momentum. With half a trillion dollars in valuation and billions flowing in, the pressure is on to deliver returns. But if the current generation of founders is as bullish as Green-Leiber describes, they might just pull it off. The region’s combination of safety net, talent, and ambition creates a pretty compelling formula.
