A new study by the Finnish Startup Community and FiBAN supported by the Yksityisyrittäjäin Säätiö (YYS), analyzes how firms that have received angel funding impact the Finnish economy. These angel-backed firms employ over 14,000 people, generate more than 4 billion euros of yearly revenue, and invest 200 million euros in R&D.
Fig: Employees in angel-backed firms in 2005-2023 (FSC, Fiban, Statistics Finland, 2025)
Angel-backed firms have become an important part of the Finnish economy. The Finnish startup ecosystem generated over €12.5 billion in revenue in 2023. While not all angel-backed firms are classified as startups, their combined revenue equals roughly one-third of the startup ecosystem in size. Angel investors are helping to build a broad base of growth companies across Finland.
“If Finland wants to be a country of growth companies, we need to recognise that much of that growth is built quietly and in a decentralised way. Thousands of jobs and billions in revenue can often be traced back to the moment when an angel investor decided to back a company that barely had a track record.” says Youssef Zad, Chief Economist at the Finnish Startup Community.
From fewer than 100 firms to a nationwide growth engine
The growing number of angel-backed firms is staggering. The study included 1 400 unique firms that have received angel-investments. From these firms, only 94 were active in 2005 and by 2023 that number had increased to 1,141 firms. Not surprisingly, employment effects and turnover have grown strongly as well.
- Number of employees in angel-backed firms increased from 769 in 2005 to 14,094 in 2023, corresponding to almost one third of all jobs in the Finnish startup ecosystem.
- Their combined turnover has increased from EUR 263 million in 2005 to EUR 4.02 billion in 2023.
“Angel investing boosts the startup ecosystem.
The growth in the ecosystem is not driven only by a handful of unicorns, but by a growing number of firms that manage to get off the ground. Angel funding often enables the first significant hires and dramatically improves a company’s ability to invest in research, sales and commercialization.” says Amir Hassan, Economist at the Finnish Startup Community
Highly educated, well-paid, and increasingly research-driven jobs
The study shows that angel-backed growth companies are playing a central role in building Finland’s future skills base and R&D capacity.
- The share of employees with a higher education degree in angel-backed firms has increased from roughly 39 percent in 2005 to 64 percent in 2023.
- The median annual salary in angel investors’ portfolio companies was around EUR 49,000 in 2022, clearly above the Finnish average.
- Firms’ combined R&D expenditure has increased roughly 30-fold since 2005 and amounted to about EUR 200 million in 2023.
“Angel investors are not only funding firms, they are indirectly funding skills, research and innovations. The data shows a clear shift towards more research-intensive business models, where highly educated young professionals and PhDs are central to value creation.” Ivan Helin, Data Scientist at FiBAN notes.
Fig2: R&D expenses in angel-backed firms in 2005-2023 (FSC, Fiban, Statistics Finland, 2025)
Media contacts
Youssef Zad
Chief Economist, Finnish Startup Community
Tel: +358 40 593 3316
Email: youssef@startupyhteiso.com
Amir Hassan
Economist, Finnish Startup Community
Tel: +358 45 889 9011
Email: amir@startupyhteiso.com
Tiina Laisi-Puheloinen
CEO, Finnish Business Angels Network ry
puh. +358 40 750 7417
email. tiina.laisi-puheloinen@fiban.org
Ivan Helin
Data Scientist, Finnish Business Angels Network ry
puh. +358 45 7838 7905
email: ivan.helin@fiban.org