Frumtak Ventures closes $87M 4th fund for Iceland investments


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Iceland’s early-stage investor Frumtak Ventures has raised a fourth fund that totals $84 million.

The Frumtak IV fund was oversubscribed and is a successor to 2021’s $57 million Frumtak III.

Frumtak Ventures’ high-conviction, concentrated funding philosophy is predicated on backing entrepreneurs fixing troublesome real-world issues utilizing cutting-edge applied sciences, unafraid of mixing software program and AI with deeptech or {hardware} parts. Whereas being sector-agnostic, the fund has beforehand positioned most of its investments in B2B SaaS startups on the seed or Collection A stage.

Frumtak Ventures eyes additional potential for Fund IV in doubling down on alternatives on the intersection of software program, AI, and deeptech in industries taking part in on Iceland’s historic strengths in areas equivalent to ocean tech and logistics, healthcare, journey, power, local weather, and gender equality.


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Worldwide consideration is beginning to movement to Icelandic firms and uplifting an rising innovation sector famend for its resilience, the corporate mentioned. Iceland’s startup ecosystem now boasts the very best invested capital per capita of all Nordic international locations. A 2023 report from the Icelandic Angel & Enterprise Capital Affiliation, Framvís, in collaboration with KPMG, discovered that international funding in Icelandic startups was up threefold 12 months over 12 months.

Frumtak Ventures emblem

The nation’s thriving tech panorama options standout firms like digital therapeutics pioneer Sidekick Well being and pharma provide chain innovator Controlant. Frumtak Ventures invested early in each firms.

Sidekick Well being (first funding made in 2017) works with 5 of the world’s largest healthcare firms and has strategic partnerships with business behemoths together with Pfizer, Bayer, and Eli Lilly. As a part of its newest stage of enlargement of providers and markets, the corporate just lately acquired most cancers help and girls’s well being specialist Pink!. Sidekick Well being just lately disclosed an 80% compound annual development charge on account of profitable enlargement, offers, and partnerships.

Controlant (first funding made in 2011) is at the moment ranked by the Monetary Instances as one of many Prime 25 quickest rising firms in Europe. The scaleup’s Icelandic headquarters helps a world community, with places of work within the US, Denmark, Poland, and the Netherlands. Controlant partnered with Pfizer on the peak of the worldwide COVID-19 pandemic and performed an important function within the distribution of vaccines.

Different excessive development Frumtak Ventures portfolio firms embody Icelandic trailblazers Treble (first invested in 2023: sound simulation and spatial audio know-how); Plaio (first invested in 2021: visible planning resolution for the generic pharma business); 50skills (first invested in 2022: hiring software program and gear for onboarding, crossboarding and offboarding); Abler (first invested in 2022: sports activities administration tech); and Alda (first invested in 2022: office tradition inclusion software program resolution).

Frumtak Ventures managing companion Svana Gunnarsdóttir, mentioned in a press release, “Frumtak Ventures was based by entrepreneurs, for entrepreneurs. We’re happy with our portfolio firms: their success validates our perception that Frumtak Ventures affords a novel toolkit to empower bold founders to thrive and scale their firms.”

Gunnarsdóttir added, “Iceland has endured and thrived regardless of challenges, each man-made and pure, and now we have correspondingly developed experience in a number of homegrown industries – in addition to discovered to future-proof them by embracing innovation. Frumtak IV might be supporting the following stars from these sectors as a sector-agnostic fund. I’d wish to thank our traders, new and present, for his or her continued help. We’re proud to have closed 4 funds in 15 years and offered help to a few of
Iceland’s most profitable firms, and the Frumtak Ventures crew is happy to deploy Frumtak IV inside the Nordic ecosystem, serving to help the following wave of winners.”


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