Finnish startups are developing solutions in fields ranging from healthcare and defence to clean energy. Joint data from the Finnish Startup Community and FiBAN show that angel-backed growth companies operate across a wide range of sectors vital to society and the economy. On Finnish Entrepreneur Day, the Finnish Startup Community highlights that behind every company is a problem that someone considered too important to ignore.
Of the angel-backed companies examined in a joint study by the Finnish Startup Community and the Finnish Business Angels Network (FiBAN), 31% operate in software, 14% in healthcare, 12% in information technology and 11% in science and technology. Eight per cent work in data and analytics, with the same proportion operating in manufacturing. Seven per cent are developing sustainability-related solutions. Companies in the dataset may be classified under more than one sector.
One of Finland’s particular strengths is deep tech entrepreneurship, which is rooted in research and advanced technological expertise. According to an international comparison by Business Finland, Finland has the highest proportion of deep tech companies relative to its total number of companies among the countries surveyed.
“Companies are often founded because someone sees that something could be done better. Entrepreneurs also develop their ideas by considering what society needs. Startups have the advantage of being able to respond quickly. Finland’s strong technological expertise gives us an excellent foundation for developing solutions to even the most difficult challenges,” says Riikka Pakarinen, CEO of the Finnish Startup Community.
Changes in the security environment are also driving the creation of new companies. According to Tesi’s recent report on the defence industry, Finland is home to 574 defence companies. These include around 200 defence or dual-use startups pursuing rapid growth.
The startup sector already employs 46,000 people
Startups make a significant contribution to Finland’s economy. According to the Finnish Startup Community’s Startup Dashboard, Finland had a total of 4,199 companies with startup origins in 2023. Together, they generated €12.2 billion in revenue and employed 46,000 people.
In the same year, these companies invested a total of €785 million in research and development.
“Finland needs more entrepreneurs who are willing to tackle difficult problems and develop new solutions. When successful, a small startup can grow into a company that employs thousands of people while generating new growth for Finland. This is why the conditions we create for new companies to emerge and grow matter enormously,” Pakarinen says.
Following Finnish Entrepreneur Day, the Finnish Startup Community will use LinkedIn to highlight Finnish startup entrepreneurs and the challenges their companies are working to solve.