Frumtak Ventures, an early-stage investor in Iceland, recently announced the successful closing of its fourth fund, Frumtak IV, with a total of $84 million raised. This fund, which was oversubscribed, follows the previous fund, Frumtak III, which raised $57 million in 2021. Frumtak Ventures is known for its investment philosophy of supporting entrepreneurs who are tackling real-world problems using innovative technologies, particularly in the B2B SaaS space at the seed or Series A stage.
The fund is sector-agnostic but has historically focused on industries such as ocean tech, logistics, healthcare, travel, energy, climate, and gender equality. Frumtak Ventures sees great potential in investing in companies that leverage software, AI, and deeptech solutions, aligning with Iceland’s strengths in these areas.
Iceland’s startup ecosystem has been gaining international attention, with the country now having the highest invested capital per capita among Nordic countries. Foreign investment in Icelandic startups has tripled year over year, showcasing the growing interest in the region’s innovation sector. Companies like Sidekick Health and Controlant, both early investments by Frumtak Ventures, have been instrumental in putting Iceland on the map.
Sidekick Health, a digital therapeutics company, has seen significant growth and success in recent years, with partnerships with major healthcare companies and a focus on expanding its services and markets. Controlant, a pharma supply chain innovator, has been recognized as one of the fastest-growing companies in Europe and played a crucial role in vaccine distribution during the COVID-19 pandemic.
In addition to these success stories, Frumtak Ventures’ portfolio includes other high-growth companies such as Treble, Plaio, 50skills, Abler, and Alda, all contributing to Iceland’s reputation as a hub for innovation and entrepreneurship. Frumtak Ventures’ managing partner, Svana Gunnarsdóttir, emphasized the fund’s commitment to supporting ambitious founders and empowering them to scale their companies.
Gunnarsdóttir also highlighted Iceland’s resilience in the face of challenges and the country’s ability to adapt and innovate in various industries. With the closing of Frumtak IV, the fund aims to continue supporting the next generation of successful companies in Iceland and the Nordic ecosystem. Overall, Frumtak Ventures’ track record and dedication to fostering innovation make it a key player in Iceland’s startup landscape.
