Sweden’s startup ecosystem retains EU lead, but loses momentum
Sweden remains the leading startup ecosystem in the EU, second only to the UK in Europe as a whole.
That’s according to this year’s Global Startup Ecosystem Index Report by StartupBlink.
In the past decade, the Nordic nation has emerged as one of the world’s top tier startup hubs. Home to over 7,000 startups and scaleups, Sweden has also minted 41 unicorns to date. This includes high-profile companies such as Spotify, Klarna, and NorthVolt.
In addition, the country is the European leader in exit value above $1bn, also outperforming global powerhouses Singapore, Israel, and Canada.
Numerous factors are behind Sweden’s success, including the high quality of life. According to local founders, entrepreneurship mentality and collaboration are also key ingredients to the mix. Another important element is a global approach to growth.
“Being a small country means that there’s a small home market,” Johan Enkelin, co-founder of Stockholm-based business management consultant Lynxeye, told TNW in a previous interview. “So you have to look openly for other opportunities around the world and be informed about what’s going on outside of Sweden.”
Losing momentum
Despite the country’s leading position, 75% of the Swedish startup ecosystems are losing momentum, according to the report.
Sweden now has 12 cities in the global 1,000 — down from 19 last year. These include central startup hub Stockholm, Gothenburg, Malmö, and Uppsala.
Stockholm is the only ecosystem that makes it to the world’s top 100. However, it was unable to secure a position in the top 20, as it did in 2023. This year, it has dropped seven spots, ranking 26th.
Nevertheless, the capital city retains the fourth position in Europe, after London, Paris, and Berlin. Amsterdam follows in fifth place.
Malmö, Uppsala, and Lund also declined, while Gothenburg jumped up 28 spots, reaching number 133 worldwide.
Overall, Sweden is the sixth best-ranked country in the word, down one place from 2023.
