Helsinki’s tech ecosystem continues to attract international venture capital firms, as Leo Capital, a successful Singapore-based venture capital firm, launches its Nordic headquarters to support regional B2B startups. Alongside this strategic move, Leo Capital is launching a €25 million fund specifically targeting the Nordic region, marking its first fund focused on Europe. The 90 Day Finn program, which one of Leo Capital’s founders, Shwetank Verma, was part of in 2022, played a crucial role in choosing Helsinki as the location.
Founded in 2018, Leo Capital has previously managed three funds primarily focused on the APAC region and has actively invested in Europe since 2021. Their successful portfolio includes companies like Apica, Atoa, and Eir. The newly announced fund, Europe Fund I, represents a significant milestone for Leo Capital, as it extends their investment reach into the Nordic startup ecosystem. Business Finland Venture Capital has made an anchor investment in the fund, showing confidence in Leo Capital’s approach amidst challenging market conditions.
“Europe Fund I continues Leo Capital’s successful strategy of investing in the world’s most capable, ambitious, and resilient founding teams. It is these founders that we are looking to partner with, combining their vision and dynamism with our own networks, resources, and years of cross-border experience to help supercharge their trajectory and realize their global ambitions”, said Shwetank Verma, Co-founder of Leo Capital.
Helsinki: A New Hub for Venture Capital
Leo Capital’s decision to expand its operations to Finland came after participating the 90 Day Finn program, an initiative by Helsinki Partners designed to attract international entrepreneurs and investors to Helsinki. Shwetank Verma’s participation in the program provided deep insights into the Finnish business environment, which shares key qualities with Singapore, such as strong government support, a high level of expertise, and a vibrant entrepreneurial spirit.
“For us, Finland is exciting because we see parallels with what we know best in Singapore, for example. We can see that combination of government support, talent, and entrepreneurial zeal. They’re small markets but very dynamic”, Verma noted.
Despite the abundant opportunities, Helsinki’s potential remains relatively underexplored on the global stage. Programs like 90 Day Finn have been crucial in bridging this gap, as they have successfully brought international investors like Leo Capital to recognize Finland’s unique offerings.
“To attract investments, talent, or companies to expand to Helsinki, we need to generate interest and ensure they experience what Helsinki and Finland has to offer. Programs like 90 Day Finn have proven to be incredibly effective. For instance, Leo Capital originally considered another European location for their headquarters but shifted to Helsinki after participating in the program,” commented Johanna Huurre, Business Director at Helsinki Partners.
The Nordic region, known for its openness and global perspective, provides an inviting ecosystem for international funds. However, while early-stage funding is relatively accessible, there is a notable gap in later-stage funding, an area where Leo Capital aims to make a significant impact.
“One of the challenges in Finland is the relatively small and local nature of funds. To elevate Finland’s success stories, we need to attract larger international funds and investors. The entry of Leo Capital, with its extensive network, into Helsinki’s ecosystem is a significant step towards this goal,” Huurre added.
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Additional information:
Johanna Huurre
Director, Strategic Initiatives, Helsinki Partners
+358 40 021 1251
johanna.huurre@helsinkipartners.com
