Nordic entrepreneur-led VC firm Node.vc closes €71 million first fund
From Switzerland's Founderful to Italians Founders Fund and the Dutch Operator Fund, a new crop of European VC firms claim to operate as "entrepreneurs
From Switzerland’s Founderful to Italians Founders Fund and the Dutch Operator Fund, a new crop of European VC firms claim to operate as “entrepreneurs backing entrepreneurs.”
Node.vc's €71 Million Fund: A New Trend in European Venture Capital?
In a significant development, Swedish fund node.vc has secured €71 million in funding to invest in startups across the Nordics and Baltics. This move marks a potential trend in European venture capital, as Node.vc joins a growing group of funds prioritizing operational experience and founder-led investment strategies.
A Deeper Connection to Entrepreneurship
Node.vc's managing partner, John Elvesjö, co-founded Swedish eye-tracking startup Tobii, which went public in 2015. This entrepreneurial background is reflected in the fund's investment team and limited partners, comprising 70 founders who can offer more than just financial support. While they have no obligation to add more than money, they can also invest their time and expertise, making Node.vc a unique player in the VC landscape.
This founder-led approach allows the fund to provide startups with a deeper understanding of the challenges and opportunities they face, as well as valuable connections and guidance.
Institutional Investors and Unconventional Approach
Node.vc's success in securing a fund of this size is attributed to its ability to attract institutional investors, including Saminvest, Sweden's fund-of-funds, and the life and pension aRM of Nordic bank Nordea. The fund's approach to VC math is also unconventional, with a deliberately oversized team of eight full-time and eight part-time staffers, several of whom previously worked at Nordic VC firm Brightly Ventures. This larger team allows Node.vc to dedicate more resources to each startup, providing a more hands-on approach to investing.
Investment Strategy and Themes
The fund plans to back seven startups each year, with an average entry ticket of €1.3 million and the potential to invest up to €10 million in a single company. Node.vc is sector-agnostic, but focuses on three themes: the future of entertainment, the future of work, and platform technologies. These themes align with the strengths and sectors the Nordics are known for, such as gaming, FinTech, and AI, but were only realized after extensive research and analysis.
The fund's sector-agnostic approach allows it to identify opportunities across a wide range of industries, rather than being limited to a specific sector or niche.
Nordic Ecosystem and Talent Availability
The fund is particularly bullish about the Nordic ecosystem, citing the availability of talent as a major advantage. According to Elvesjö, the region's talent pool is more available than it has been in the last five years, thanks in part to the recent layoffs at several Scandinavian unicorns. This talent availability, combined with the region's strengths in AI and other emerging technologies, makes Node.vc confident in its ability to identify and support successful startups. The fund believes that the Nordic ecosystem offers a unique combination of entrepreneurial spirit, innovative thinking, and access to tOP talent, making it an attractive location for startups and investors alike.
Conclusion
Node.vc's €71 million fund marks a significant development in European venture capital, as the fund prioritizes operational experience and founder-led investment strategies. With its unique approach to VC math, sector-agnostic focus, and emphasis on the Nordic ecosystem, Node.vc is well-positioned to support startups across the Nordics and Baltics. As the fund continues to invest and grow, it will be interesting to see if this trend gains momentum, potentially changing the face of European venture capital. Node.vc's success could inspire other funds to adopt similar approaches, leading to a more diverse and dynamic VC landscape in Europe.
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