The Rise of Finland’s Agrifood Tech Innovations
Finland epitomizes a classic Nordic narrative, characterized by a robust ecosystem of government-backed initiatives that not only stimulate startup culture but also furnish essential funding to complement private venture capital (VC) investments. Public institutions provide accessible grants, while major corporations invest in national innovations, either directly or through foundations. A notable example is the recent $10.6 million government grant awarded to Solar Foods.
Learning from the Nordic Neighbors
This strategy is reflective of similar successful models in the Netherlands and Denmark, both recognized as European tech innovation hubs. As Finland strives to join this exclusive “Nordic innovators” club, it has shown commendable progress.
A Promising 2024 for Agrifood Tech
Recent data highlights an impressive amount of funding directed towards Finland’s agrifood tech sector, particularly focusing on enhanced food production and innovation. In 2024, Finland raised $390 million in agrifood tech venture capital across 19 deals, positioning itself at 8th in the global rankings, surpassing countries like Japan, Canada, Brazil, Spain, and Israel.
Despite its expansive territory and a population of less than 6 million, Finland faces unique geographical constraints—around 10% of its area consists of lakes, 73.7% is forested, and only approximately 7.5% is suitable for agriculture. Nevertheless, the nation has demonstrated remarkable enthusiasm for agrifood startups.
Decade of Investment in Agrifood Tech
An overview of the last decade in agrifood tech VC funding shows that 2024 was an extraordinary year; however, it should be noted that a substantial portion of the total raised ($259.8 million) was attributed to a significant deal concerning Finnforel, a startup specializing in aquaculture.
The pre-COVID era saw increasing investment, which peaked in 2021 at $661 million across 28 deals, followed by a downturn in 2022 due to a credit crunch. Growth resumed in 2023, and the 2024 figures have exceeded pre-COVID levels.
Investment Trends and Analysis
Interestingly, although there were no agrifood tech deals recorded in the first quarter of 2025, startups have successfully attracted $45 million in Q2.
Global and European Investment Shares
Finland’s standing within the global and European agrifood tech landscape appears to be improving. Its share of European investment grew significantly from 6.63% in 2020 to over 10% in 2024, primarily due to Finnforel’s remarkable fundraising efforts. As of now, Finland retains a share of 7.86%, well above pre-COVID levels.
Globally, Finland has gained traction since 2018, with a slight dip during the 2022-2023 credit crunch. However, it rebounded to a 2.42% share of global agrifood tech funding in 2024, currently sitting at 2.27% in 2025.
Funding Breakdown by Category in 2024
An analysis of funding categories in Finland for 2024 reveals that while the downstream category of Online Restaurants & Marketplaces had previously accounted for nearly 50% of funding, this year saw an emphasis on upstream supply chain solutions. The largest segment, Novel Farming Systems, attracted $260 million, entirely from the aforementioned Finnforel deal.
Other categories like Innovative Food and Bioenergy & Biomaterials have also garnered attention, with Innovative Food raising $48 million across four deals and Bioenergy achieving a 10.1% share from three deals valued at $39 million.
Stage Analysis: A Shift in Funding Focus
Over the last three years, seed funding has seen a decline both in total amount and average deal size, while Series A and B rounds, along with various debt financing options, have attracted the majority of growth. Late-stage rounds, on the other hand, remain sparse.
Top Funded Startups of 2024/2025
Among the leading startups receiving funding in 2024/2025 are:
- Finnforel – Raised $259.8 million for its aquaculture operations, making it the second-largest funding round for a Finnish agrifood tech startup.
- Onego Bio – Specialized in producing animal-free egg-white protein, raised $45.3 million in two rounds in 2024.
- Volare – An insect-based startup that raised $35.8 million from a combination of debt and an A round.
- Infinited Fiber Company – Raised $29.5 million in its B round for innovative textile fibers sourced from waste materials.
- Enifer – Focuses on biomass fermentation and raised $25.9 million through a mix of B round and debt financing.
Further Reading
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