According to the latest Startup Barometer (Q1/2025), lack of funding remains the most significant barrier to the growth of Finnish startups, with over half of respondents consistently identifying it as a key challenge. The option to report lack of funding as a specific growth barrier was introduced in the Q3/2023 Barometer. Since then, the share of startups citing funding as a barrier has increased by approximately 10 percentage points, reflecting growing concern over access to capital.
Figure 1 shows the share of respondents who identified specific issues as growth barriers, comparing the first quarters of 2024 and 2025. The figure reveals a slight increase in the share of startups reporting lack of funding as a barrier to growth.
It is worth noting that the Finnish Venture Capital Association (FVCA) recently published updated funding figures for Finnish startups. According to their statistics, total startup funding in Finland increased from €869 million in 2023 to nearly €1.4 billion in 2024.
Given this significant rise in investment, one might expect the share of startups citing lack of funding as a growth barrier to have declined. However, the Startup Barometer results indicate that concerns about funding access remain high.
One possible explanation is that total funding levels are still below those seen in 2022, and even further behind the growth trajectory that many startups likely anticipated. In other words, while the situation has improved compared to 2023, it may still fall short of expectations set during stronger funding years.
While funding remains critical, the demand for skilled labour appears to have become less of an immediate concern, decreasing significantly from 48% in Q2/2022 to just 20% in Q1/2025—a reduction of more than 58%. However, the FSC argues that this shift is not the result of an improved talent supply but rather stems from a slowdown in hiring by startups, as seen by rising unemployment rates in Finland. Official data from Statistics Finland support this trend, indicating weaker economic conditions and thus reduced labour demand.
Figure 2 shows how the perceived growth barriers among startups have evolved. The share of respondents citing a lack of funding as a key obstacle has increased, while concerns over the availability of skilled labor have declined significantly. Notably, in Q3/2024, insufficient demand was on track to become the most reported issue, but in the latest barometer, its share fell back to around 30%.
Overall looking forward, the current softening in labour demand could mask an underlying structural challenge. When economic conditions inevitably improve, Finland may quickly transition to a tight labour market. Without proactive investment in strengthening the talent pool by the Finnish government, this shortage of skilled workers might quietly become the biggest threat to Finland’s potential to find its next unicorn.
Full analysis regarding barriers to business growth can be accessed here.
Full results of the Startup Barometer can be accessed here.
Youssef Zad & Amir Hassan
Finnish Startup Community Economists