Helsinki’s startup scene has evolved around giants such as Nokia, gaming giant Supercell and food delivery platform Wolt. It is reaping its fruits thanks to the experienced entrepreneurs, investors and engineers who power the spirited scene around the Aalto University campus and the Slush startup festival, one of the largest gatherings of investors and startups in the world.
“We value work-life balance and collaboration,” explains Jonne Kuittinen, deputy CEO of the Finnish Venture Capital Association. “The guys at Supercell have been very open about paying all taxes in Finland, and that giving back mentality is evident now with the founders helping with multiple ongoing funding rounds. I think the scene will turbocharge soon.”
Low unemployment in the country means it’s tough to find programmers, says Claes Mikko Nilsen, director of VC Nordic Ninja, but an open government that will launch the fast-track D visa in 2022 has boosted international recruitment. Next step? More funds for late-stage investments.
Paebl
“Concrete is the most consumed product in the world after water, and this process is not slowing down,” says Paebbl co-CEO Andreas Saari. The main ingredient of concrete, cement is the source of 8 percent of global carbon dioxide emissions. Paebbl reverses this situation by using rock weathering, or mineralization, to turn carbon dioxide into stone. Carbon captured from industrial facilities is mixed with water and ground silicate to produce a solid carbonate-based material, using a technique developed by CTO Paebbl Pol Knops. Paebbl founders Jane Walerud, Marta Sjögren, former CEO of Slush, Saari and Knops, raised €8 million ($8.9 million) in seed funding in October 2022 from French climate tech VC Pale Blue Dot investor 2050, the Grantham Foundation and several angels. In May In 2024, the pilot reactor absorbed the first tonne of CO2. The demonstration plant will be operational later this year and the stone will be placed in the field in spring. Next up will be the selection of locations and partners for four commercial-scale plants to be operational by 2030. paebl.com
Remote technologies
Distance Technologies has developed a prototype version of a mixed reality HUD for military pilots that works like a 3D monitor without glasses. The LCD panel displays 3D images on limpid surfaces, such as a car windshield with a reflective coating. The company is considering using detailed three-dimensional topographic maps displayed on the windshields of the cockpit for pilots and night vision materials showing the road for drivers. The prototype is equipped with a hand tracking module, so users can operate the screen without using their hands. Founded in 2023 by co-founders Jussi Mäkinen and Urho Konttori, who met at Helsinki-based mixed reality headset company Varjo, it has raised $2.7 million (£2.04 million) in a pre-seed round led by FOV Ventures and Maki.vc , featuring Business Finland and Foobar.vc by David Helgason. Currently, talks are underway with companies from the automotive, aerospace and defense industries. distance.tech
Constant energy
Steady Energy began at the state-owned Technical Research Center of Finland when CEO Tommi Nyman and co-founder Hannes Haapalahti decided to commercialize the LDR-50 low-temperature nuclear reactor. Most existing nuclear reactors operate at temperatures of around 300 degrees Celsius, superheating the steam that powers ponderous turbines. The modular LDR-50 operates at temperatures from 65 degrees Celsius to 120 degrees Celsius and heats water directly. This will be pumped into district heating networks, providing local systems with warm water from a central power plant, sent through insulated pipes to heat homes. These networks have long been popular in Scandinavia and the US, and thanks to last year’s EU directive expanding their exploit, they are spreading to other European countries. After raising 15 million euros ($16.7 million) from Lifeline Ventures, Yes VC and Reid Hoffman’s Aphorism Foundation, Steady Energy has entered into preliminary agreements for 15 reactors with utilities Helen and Kuopion Energy. Construction is scheduled to begin in 2028, with operations expected to begin in 2030. http://www.steadyenergy.com
Skyfora
Skyfora develops cutting-edge instruments to improve the accuracy of weather forecasts. The company offers three different weather probes called StreamSondes, ultra-light atmospheric transmitters that hurricane hunters drop in the path of storms. The company also adapts satellite receivers in telecommunications base stations into a network of weather scanners that can analyze water vapor, temperature and air pressure. CEO Fredrik Borgström, CTO Kim Kaisti and co-founder Antti Pasila have raised €5 million ($5.5 million) in four rounds of funding from Icebreaker.vc, Voima Ventures and other angel investors. The company’s StreamSonde system was deployed during July’s Hurricane Beryl, and Skyfora is currently working with telecommunications operators to set up proof-of-concept pilot towers. skyfora.com
Enifera
ReOrbit
ReOrbit is a pioneer of “software-enabled satellites,” a distributed network of secure satellites that act as the Internet of Things in space. The production of satellites has not changed for 40 years, explains Sethu Saveda Suvanam, CEO and founder, because they can only communicate directly with Earth. Suvanam is fixing this problem by building “flying routers” that enable, for example, military satellites to send images of Russian ships through space to the coast guard, speeding up warnings. The committed seed round of €7.4 million ($8.2 million) in September 2023 will fund an orbital demonstration satellite, scheduled for launch in 2025. reorbit.space
Kingdom
Founders Miika Huttunen and Mikko Mäntylä met at Slush, a company with high staff turnover, which led to loss of documentation and a lack of “corporate memory”. Together with former Stripe engineer Johan Jerne, they created a multi-language AI model that can search every digital document an organization has ever created to answer, for example, sales reps’ questions about past transactions. The first round of seed funding, launched in April 2023, in the amount of €1.7 million, was led by Lifeline Ventures together with angels including Helsinki-based founders from Zalando and Supercell. The company is currently working with procurement analytics leader Sievo, gaming company Remedy Entertainment and electric vehicle charging service provider Virta. withrealm.com
Bob W
Called Best of Both Worlds, the company operates 36 full-service aparthotels in 17 cities across Europe. The company uses a digital front desk run by chatbot Bob W, which handles check-in and check-out, as well as breakfast and gym reservations. The system also informs guests about the carbon footprint of each choice they make. Founded in 2018 by Niko Karstikko and Sebastian Emberger, the company has raised €70 million ($78.3 million). In the most recent round in March, Wise founder Taavet Hinrikus and Supercell co-founder Mikko Kodisoja raised 40 million euros ($44.7 million). The money is financing an ambitious acquisition policy that will involve purchasing 20 to 25 buildings across Europe and transforming them into 1,500 to 2,000 aparthotel rooms. bobw.co
Swarm
Swarmia is a software engineering efficiency platform designed to lend a hand software teams communicate, set goals, and measure productivity. The key to this is software that connects other platforms like GitHub, Jira/Linear, and Slack to create “working agreements” – agreed guidelines for managers and teams on how they plan to collaborate. These include the goals, how they will be achieved and how the results will be measured. Founder Otto Hilska was previously the Chief Product Officer at Smartly.io. It has raised €13.8 million ($15.4 million) over three rounds, most recently from Dig Ventures, and is expanding in the US. Swarmia currently serves over 1,500 companies, including WeTransfer, Hostaway and Axios HQ. swarmia.com
Noise
Noika is all about the metagame. The live streaming gaming platform allows viewers to bet on the outcomes of the games they are watching using digital cards. For example, they might predict that your next Fortnite kill will involve a shotgun. Each correctly selected card earns points that can be purchased or earned by watching ads. Founded in 2020, the company has raised a total of €25 million in two rounds of funding, with support from local entrepreneurs including the co-founders of Supercell and the co-founders of Wolt. Noice’s co-founders, CEO Jussi Laakkonen and CTO Jaakko Lukkari, met at Applifier, a Finnish company that helped developers create replays in games before Unity acquired the company. The company is still in beta testing, and the full version will be available later this year. noice.com
This article first appeared in the November/December 2024 issue of WIRED UK.