Iceland's Frumtak Ventures Closes $87M Fund for Tech Startups

Iceland's Frumtak Ventures Closes $87M Fund for Tech Startups

Kristján Jónsson
3 min read

Frumtak Ventures Closes $87M Fund, Cementing Iceland's Tech Ascendancy

Iceland-based Frumtak Ventures has successfully concluded the funding of its fourth venture, named Frumtak IV, amassing a substantial $87 million. Renowned for their versatile and sector-unrestricted investment approach, the firm has historically exhibited a preference for backing B2B SaaS startups, typically in the seed or Series A stage. The latest fund is geared toward advancing companies that amalgamate software, AI, and deeptech, particularly in sectors where Iceland excels, such as ocean tech, logistics, healthcare, travel, energy, climate, and gender equality.

Iceland's tech landscape is garnering international acclaim, with the highest per capita investment influx among Nordic nations. A recent report has documented a threefold surge in foreign investments in Icelandic startups in comparison to the previous year. Notable success stories from Iceland encompass Sidekick Health, a vanguard in digital therapeutics with partnerships extending from Pfizer to Bayer, and Controlant, an innovator in pharmaceutical supply chain management pivotal in vaccine distribution during the COVID-19 pandemic.

Frumtak Ventures has been an early advocate for both these enterprises. Svana Gunnarsdóttir, co-founder and managing partner of Frumtak Ventures, underlined the firm's dedication to endorsing visionary entrepreneurs, spotlighting Iceland's steadfastness and ingenuity across various sectors. With Frumtak IV, the team eagerly anticipates continuing their support for burgeoning tech luminaries in the Nordic sphere.

Key Takeaways

  • Frumtak Ventures secures $87 million for its fourth fund, focusing on early-stage B2B SaaS startups.
  • The fund targets companies intersecting within software, AI, and deeptech, leveraging Iceland's strengths in ocean tech, healthcare, and more.
  • Iceland's startup ecosystem leads Nordic countries in invested capital per capita, with foreign investment tripling year-over-year.
  • Noteworthy investments include Sidekick Health and Controlant, both experiencing substantial growth and forming partnerships.
  • Frumtak Ventures aims to bolster the upcoming wave of successful enterprises in the Nordic ecosystem.


The $87 million fund accrued by Frumtak Ventures accentuates Iceland's escalating eminence in the technological domain, leveraging its distinct proficiencies in ocean tech and healthcare. This surge in capital, with a threefold escalation in foreign investments, positions Icelandic startups as appealing prospects. In the short term, heightened competition and innovation can be anticipated in the targeted sectors. In the long term, Iceland may emerge as a technology hotspot, influencing global trends in AI and deeptech. Beneficiaries encompass local startups and international affiliates like Pfizer and Bayer, while potential challenges could arise from regulatory shifts and market saturation.

Did You Know?

  • Sector-agnostic Approach:
    • A sector-agnostic approach in investing denotes a strategy wherein an investor, like Frumtak Ventures, refrains from constraining its investments to specific industries or sectors. Instead, it assesses and invests in promising startups across diverse sectors based on their potential for growth and innovation, irrespective of their industry categorization.
  • B2B SaaS Startups:
    • B2B (Business-to-Business) SaaS (Software as a Service) startups are companies that develop and offer software solutions to other businesses over the internet. These solutions typically follow a subscription model, enabling businesses to utilize the software without the necessity of extensive hardware or IT infrastructure. Examples encompass customer relationship management (CRM) tools, enterprise resource planning (ERP) systems, and various productivity and collaboration platforms.
  • Digital Therapeutics:
    • Digital therapeutics fall under the umbrella of digital health, delivering evidence-based therapeutic interventions to patients, often for the treatment or management of a wide array of conditions. These interventions are driven by sophisticated software programs that can be employed independently or harmonized with pharmaceuticals, devices, or other therapies to optimize patient care and health outcomes. Pioneers in this domain, such as Sidekick Health, leverage technology to furnish personalized health interventions.

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