There are currently four venture capital funds in Iceland – three of them initiated in 2015. The investment capacity of these three is around USD 85 million to be invested in the next 3-4 years.
Historically, this is groundbreaking news for Iceland. Never before has so much funding been allocated to early stage companies. Since 2008, much discussion has been around how Iceland, like any Western country, could grow out of the recession in 2009-2010. Well, local investors, primarily Icelandic pension funds and banks, pulled themselves together, and placed a fraction of their capital to venture capital. This has been excellent to the highly innovative Icelandic startup scene yet capital deprived. At least, McKinsey stated in late 2012 that in order for Iceland to be at the same investment level as the United States, annual investment in early stage companies need be USD 25-30M. Finally, the country is getting closer to that reality. Continue reading