Members of Finland’s startup community report that their companies’ financial situations improved during 2024. However, recruitment has not accelerated, and expectations for the broader economic environment remain cautiously optimistic. The Startup Index, which reflects the overall sentiment of startups, has rebounded from its 2023 lows but remains well below the peak levels of 2022.
“Although startup sentiment has improved, progress has been quite moderate. We are taking cautious steps toward better conditions, but the pace of change could be faster. Finland needs stronger economic growth, and startups must play an even bigger role in achieving it,” says Youssef Zad, Chief Economist of the Finnish Startup Community.
Figure: Overall Startup Sentiment Index, Q2/2022 – Q4/2024

Explanation: The Startup Index represents the quarterly average sentiment of recurring survey questions. Scores range from -100 (very poor) to +100 (very strong).
Startups’ Financial Situations Improved in 2024
The sentiment indicator reflecting the financial health of startups has improved throughout 2024. The balance figure for companies’ financial conditions over the past three months rose to 27.3 points in Q4 2024, marking a significant improvement over previous quarters and reaching its highest level in two years.
“The rise in this financial sentiment score indicates that startups have strengthened their performance despite challenging economic conditions,” says Riikka Pakarinen, CEO of the Finnish Startup Community.
Although expectations for the next three months have slightly declined, overall confidence remains strong.
Figure: Balance Score for Startups’ Financial Situations – Past and Next Three Months

Startup Funding Expected to Increase
The improved outlook on the economic environment and growing confidence in company finances suggest a potential boost in startup funding.
“According to the Finnish Venture Capital Association (FVCA), startup funding in Finland reached €497 million in the first half of 2024,” says Jonne Kuittinen, Deputy CEO of FVCA.
While full-year data has yet to be released, major funding rounds were announced by Hostaway and Oura, securing a combined €537 million.
“It is likely that total startup funding in 2024 will reach at least €1.1 billion, marking a 26% increase from 2023. If the trend continues, funding could rise to €1.3 billion by 2025,” estimate Zad and Kuittinen.