In a notable development within the European venture capital landscape, Node.vc, a Stockholm-based firm, has successfully raised €71 million to support early-stage startups in the Nordic and Baltic regions. This initiative aligns with a growing trend among European venture capital firms that emphasize a model of "entrepreneurs backing entrepreneurs."

 

A New Era for European Venture Capital

Node.vc joins other European funds like Switzerland's Founderful and Italy's Founders Fund, which have adopted similar philosophies. John Elvesjö, managing partner at Node.vc, expressed optimism about this emerging trend, stating, "I hope it is a beginning trend." He highlighted Europe's lag in operational experience compared to the U.S., noting that many claims of being founder-led often lack depth upon closer examination.

 

Deep Roots in Entrepreneurship

The foundation of Node.vc is built on genuine entrepreneurial experience. Elvesjö himself co-founded Tobii, a Swedish eye-tracking company that went public in 2015. The firm’s investment team is complemented by a diverse group of limited partners (LPs), including 70 founders from various sectors. While these LPs are not obligated to contribute beyond financial support, their inclination to engage actively enhances the firm's investment strategy.

Securing institutional backing was crucial for Node.vc's fund size. Notable investors include Saminvest, a Swedish government-backed fund-of-funds, and Nordea's life and pension division. This combination of entrepreneurial and institutional support is particularly significant for a first-time fund.

 

A Unique Operational Structure

Node.vc operates with an intentionally larger team than typical for its fund size. With eight full-time and eight part-time employees—many of whom previously worked at Nordic VC firm Brightly Ventures—the firm aims to effectively manage its planned investments in seven startups annually. Elvesjö explained this approach: “We are entrepreneurs building a VC firm,” emphasizing the need for adequate resources to nurture their portfolio companies.

The fund is designed to make initial investments averaging €1.3 million, with the potential to follow up with additional funding up to €10 million per company as needed.

 

Diverse Investment Focus

Although Node.vc maintains a sector-agnostic stance, it has identified three primary themes for its investments: the future of entertainment, future of work, and platform technologies. The firm has already made three investments in startups: Roro, a gaming studio; Lemonado, a no-code platform; and Starhive, a unified data management solution.

Elvesjö noted that these themes align with the strengths of the Nordic ecosystem but required extensive research to identify. “We did this enormous investment in figuring out where trends are going,” he said, reflecting on their strategic planning process.

 

Talent Availability Amid Market Changes

Interestingly, recent layoffs at several Scandinavian unicorns may benefit the startup ecosystem by increasing talent availability. Elvesjö remarked that "talent in the Nordics is more available than it’s been for the last five years," positioning Node.vc favorably as it seeks to capitalize on emerging opportunities in technology sectors like AI.

As industries brace for disruption from AI tools, Node.vc believes the Nordics are well-equipped to harness these changes. The firm’s commitment to fostering innovation positions it as a key player in shaping the future of technology across various sectors.

Node.vc's approach emphasizes collaboration between experienced entrepreneurs and emerging founders, aiming to create an ecosystem where innovative ideas can flourish. With its substantial backing and founder-first philosophy, Node.vc seeks not just to provide capital but also to offer invaluable insights and support throughout the entrepreneurial journey.

As Elvesjö succinctly put it, “When we invest in a company, we bring much more than capital.” This perspective underscores Node.vc's dedication to enhancing the startup landscape in the Nordics and beyond—an ambition that could signal a new chapter for venture capital in Europe.