Finland’s startup ecosystem strengthens as the number of new startups returns to growth

The turnaround is encouraging, although the number of startups has declined over the longer term. In 2016, 587 startups were identified.

Identified startups by year of establishment

Startups that received funding from Business Finland or angel investment from FiBAN, or participated in Slush (2014–2026), by year of establishment. The number of startups established in 2025 in particular will be updated as more companies are identified and newly established companies receive funding or participate in Slush.

“The increase in the number of new startups is an encouraging sign. Startups typically invest heavily in research and development, generating new high-value-added business and exports. That is exactly what Finland needs,” says Marjo Ilmari, Senior Director at Business Finland.

A startup is a young, innovative company aiming for international growth, whose business model and market are often still developing. Startups differ from other new companies particularly in their focus on scalable business models and their need for external funding.

The creation of new startups is supported by sustained investment in areas such as the commercialisation of research, entrepreneurship services provided by universities and research institutes, and networks and services offered to companies by cities.

Business Finland accelerates the international growth of promising startups by sharing the risks associated with developing new innovations. At the same time, this strengthens companies’ ability to raise larger investment rounds.

“According to FiBAN’s latest report, 75% of the 1,600 Finnish companies that received angel investment between 2013 and 2025 have also received funding from Business Finland. This figure illustrates how private and public funding complement each other. Angel investors bring capital, expertise and networks to a company, while Business Finland shares the risk at a stage when the product is still under development and revenue remains limited. Together, they help promising companies cross the valley of death,” says Tiina Laisi-Puheloinen, Managing Director of FiBAN.

Last year and this year, Business Finland has funded nearly 700 projects carried out by startups.

Two out of three projects have a strong focus on digital solutions and the use of artificial intelligence and data analytics. Health and well-being solutions, as well as solutions related to defence and security, also feature prominently among the funded projects.

“These projects provide a strong foundation for developing solutions that improve productivity and renew Finland’s business landscape. Startups can bring new products, services and industries to Finnish exports and open up new markets,” says Ilmari.