By Kirstie McDermott
Abba, IKEA and Volvo are just a few of Sweden’s most enthusiastically acquired global exports.
But a further area the place Sweden is attaining international recognition presently is in just the tech sector.
Its capital Stockholm has been known as the “true jet motor of the Nordic tech scene” and at initial glance, it’s not tough to see how it is acquired the title.
The town has now developed various billion-greenback firms in reality it is household to 35 unicorn corporations, various of which have disrupted so considerably about the way we stay now.
Individuals include the obtain-now-shell out-afterwards fintech Klarna, and Spotify, the audio streaming company that has revolutionised how tunes is eaten. Other unicorns born right here incorporate King, Mojang, and iZettle.
Sweden is also flagged as getting the fifth biggest pool of prospective long term unicorns in Europe.
Extra recent tech sector startups here include LEIA, a submit-being pregnant wellness application. And let’s not forget about local climate fintech Doconomy and ClimateView, which assists cities close to the earth attain net-zero by its ClimateOS platform.
In data engineering, Validio has the backing of Swedish football legend Zlatan Ibrahimović.
Which sectors to check out
Influence startups are the huge types to view right here. As the identify implies, these are providers that concentration on making a business to resolve a major societal difficulty and develop measurable positive change.
The most valued Swedish effect startups in 2021 involve Polestar, an electric powered general performance car or truck manufacturer Oatly, the vastly preferred plant-based mostly milk Northvolt, a lithium-ion batteries maker Voi Technological innovation, which would make electric scooters, and Re:newcell, which provides recycling and biodegradable raw elements for trend.
Dealroom studies that the blended organization benefit of Swedish influence startups has developed above 20 periods greater than it was in 2017 – quicker than any other European hub.
A further huge cluster listed here is gaming and musitech.
Probably the latter isn’t so astonishing: Sweden has a lengthy historical past in rock and pop new music. Robyn, The Cardigans, Avicii, Europe, Roxette and lots of more all hail from this Nordic place.
The aforementioned Spotify reigns as the most well-liked streaming platform globally, and Stockholm was also the birthplace of Soundcloud, now headquartered in Berlin.
A different tunes tech firm started right here is Tidal, developed in 2014 and afterwards obtained by Venture Panther Bidco Ltd. (owned by Jay-Z).
When it comes to video games, Sweet Crush Saga is 1 everybody understands. Established by King, in November 2015 it was obtained by game titles behemoth Activision Blizzard for $5.9 billion (€5.6 billion).
Mojang, which established the hugely common Minecraft game, marketed to Microsoft for $2.5 billion (€2.4 billion).
What led to Stockholm’s results?
So, why is Stockholm these a fertile environment for these very important tech corporations? There are a amount of motives.
A late 1990s govt policy to place a laptop in just about every residence – the “Home Computer reform” – enabled one million Swedes to get their to start with laptop or computer. This, together with an early govt expenditure in world-wide-web connectivity, sowed the seeds for numerous upcoming tech business owners to prosper in this article.
Sweden also has a generous social security net for its citizens, which involves countrywide access to free of charge education and learning and largely free childcare.
There is also fantastic welfare guidance in location far too, such as revenue insurance coverage resources which can kick in if your business fails or you eliminate your work. Swedish personnel are certain up to 80 for each cent of their preceding salary for the 1st 300 days of unemployment.
That all assists to consider the concern out of founding a new small business and can help to foster a society of innovation.
To increase to that, Sweden’s government invests far more than one particular per cent of its GDP in research and growth.
But matters are not all beneficial, despite the range of social assistance on supply. Variety is a obstacle according to Dealroom, which studies that fewer than one for each cent of enterprise capital cash go to all-feminine founding teams.
Taxation is high as well: money gains are taxed at 30 for every cent and income tax can be as superior as 60 for every cent.
Adapting to Stockholm
As a area to stay and work, Stockholm is a person of Europe’s cooler capitals. One particular-3rd water, one particular-third environmentally friendly house, and 1-third properties, the town is distribute throughout 14 islands, and is a clear and protected place to reside.
It can, nevertheless, be an pricey put to transfer to for get the job done. The country’s finance ministry lately raised its outlook for inflation, forecasting shopper value rises at preset costs of 7.9 per cent this yr and 5.2 per cent for 2023.
Like lots of other European money metropolitan areas, lease in Stockholm is high-priced too, but the good quality of lifestyle and sense of social obligation below offer a harmony.
All those relocating from other parts of Europe can assume entry to Stockholm’s superb infrastructure as nicely as education and learning and healthcare.
And the transition is not as complicated for several as it may possibly show up: nearly each individual Swede speaks English, with Sweden coming seventh out of 111 nations in the EF English Proficiency Index (EF EPI) in 2022.
This is a nation filled with recyclers: In 2019, Swedes recycled 2.15 billion cans and bottles, which saved about 180,000 tons of Co2.
Furthermore, ‘plogging’ started out in the metropolis: a hike or jog blended with finding up trash to recycle, it started in Stockholm in 2016 as a reaction to plastic air pollution.