"To infinity and beyond!" 🚀

Was the topic at the annual morning conference hosted by Framvís - Venture Capital Association of Iceland last Friday, sharing insight into the world of start-up investments with guest speakers Sigurdur Arnljotsson, Tommy Andersen, Alma Dóra Ríkarðsdóttir, Svava Björk Ólafsdóttir and panelists David Simonarson, Vala Halldorsdottir, Finnur Pind, Ragnheiður H. Magnúsdóttir, Kristjan Mikaelsson, Linda Björk Ólafsdóttir, and Oddur Olafsson.

Sigurður, the Chairman of Framvís and Managing Partner at Brunnur Ventures, gave a speech on the history of Icelandic VC funds and the Icelandic start-up ecosystem.

In 1998-2000, 13 small-sized VC funds were launched, with a new beginning in 2015-2017 when four mid-size funds erupted, with an addition of five VC funds in 2021 and one governmental fund-of-funds.

The Icelandic start-up ecosystem is thriving well, with four impactful exits recently, most notably the $1.3bn sale of Kerecis, the $425m sale of CCP Games, the $324m Nasdaq NY listing of Oculis, and the $238m sale of Tempo Software. Generally, VC funds aim for the unicorns; however, other exits below $100m also play an essential role in the Icelandic ecosystem.

Sigurður emphasized the contribution of foreign investors to the venture ecosystem, stating that a single VC fund rarely invests alone throughout the start-up journey. He stressed the necessity of collaborative investments, citing Brunnur Ventures' early investment in Oculis with $110m in follow-up funding from industry-specific funds. Over 140 foreign VC funds have invested alongside the Icelandic VC funds.

Addressing talent scarcity, Sigurður underscored the need for Icelandic companies to attract foreign expertise to remain competitive with countries like Sweden and Finland, which offer the most attractive tax incentives to specialists. He urged the Icelandic government to address this issue to prevent the need for Icelandic startups to relocate or build their workforce entirely abroad.

‍Tommy Andersen, Founder & Managing Partner at the Danish venture fund byFounders, spoke about the Danish success stories, the wealth creation beyond investor returns, such as the stunning network effects of job creation and tax generation, the importance of access to foreign talent and retaining the companies in the country with improved incentives and legislation.