When talking about Iceland, most of us think about a landscape surrounded by glaciers and mountains.

However, in the past decade, Iceland has experienced a decent positive upturn in its economy, bringing about a 6.4% growth. There are many startups being introduced, especially in the tech sector and there are dozens of venture capital firms who are willing to support new ideas.

Thinking about who these VC firms might be?

Well, let’s wait no longer and jump onto the list of the top 9 venture capital firms in Iceland.

Top 9 Venture Capital Firms in Iceland

Following is the list of some of the top-ranking VC firms in Iceland.

New Business Venture Fund

The New Business Venture Fund was established to strengthen and develop the Icelandic venture capital market while promoting startups and businesses in Iceland. It operates as an evergreen investment fund, meaning that it is sustainable, and profits from asset sales support both ongoing operations and new investments.

The investors primarily invest in companies that are likely to provide added value and profitability for Icelandic society, as well as ensure a good return on investment. New Business Venture Fund also has a dedicated mentorship panel for their portfolio companies as it guides them throughout the early stages.

The investment range of the New Business Venture Fund can go up to  €5M. 

NSA Ventures

NSA Ventures is also one of the leading Icelandic VC firms. It is headquartered in Reykjavik and is led by some of the most experienced investors and entrepreneurs in Iceland. 

As for startup investments, NSA Ventures prefers businesses that are led by experienced individuals who are well aware of the competitive markets. They only invest in startups that can scale on an international level and generate 3-4x ROI.

The investment range of NSA Ventures is around  €1M.

Frumtak Ventures

Founded in 2008, Frumtak Ventures is a prominent VC firm headquartered in Reykjavik. The firm's mission is to invest in teams and ideas that solve real-world problems, reinforcing Iceland’s reputation for profitable innovation.

Moreover, Frumtak Ventures focuses on early-stage investments in innovative companies. The investors conduct rigorous screening tests, evaluating the team, market potential, scalability, and competitive advantage.

The investment range of Frumtak Ventures is around  €3M.

Brunnur Ventures

Funding startups for more than a decade, Brunnur Ventures is also an active VC firm in Iceland. The firm invests in a wide range of startup sectors and usually focuses on businesses that have low competition.

Every year, Brunnur Ventures organizes several pitching competitions and funds around 3-5 companies. The investors prioritize startups that are led by leaders with at least 5 years of experience and are at the seed stage. 

Brunnur Ventures' investment range varies between  €2M to  €13M.

Website: Brunnur Ventures | Venture Capital Firm | Iceland

Founded: 2013

Preferred Industries: Sector-Agnostic

Total Investments: 27

Exits: 8

Notable Investments: Grid and Oculis

Crowberry Capital

Having the latest startup fund of over  €90M, Crowberry Capital is all set to invest in Denmark and Iceland-based startups. The firm's mission is to support founders who are genuine with their cause and want to bring positive ideas to the startup culture which will be beneficial for the consumers.

Moreover, the investors at Crowberry Capital like to invest in the gaming and educational industries, believing they have a lot of growth potential. Startup leaders who are planning to pitch to this firm should be well prepared as Crowberry Capital has rigorous screening tests with the questioning phase being around 10-25 minutes.

Their investment range is between  €200,000 to  €2M. 

Ugly Duckling Ventures

Although based in Copenhagen, Denmark, Ugly Ducking Ventures has also started to make investments in Iceland. The firm usually invests in AR, XR, and Innovative tech-related startups.

Similarly, the investors at Ugly Duckling Ventures are interested in funding startups that have massive growth potential and are backed by experienced startup leaders. Other than the funding activities, Ugly Duckling Ventures is also known for its active involvement in workshops and mentorship programs. They not only invest but also guide startups when things aren't working in their favor.

The investment range of Ugly Duckling Ventures is between  €200,000 to  €800,000.

SNÖ Ventures

SNÖ Ventures aims to enhance the Nordic ecosystem by facilitating the sharing of resources, talent, ideas, and experience throughout the region.

The firm invests in world-class founders who are driving innovation in the tech space. The investors have a strong focus on early-stage startups, providing capital and operational expertise to help these companies thrive.

Moreover, they also organize events like the Oslo Tech Excursion, bringing together early-stage tech companies from Norway with key stakeholders from the European venture ecosystem. Their Founder Stories events feature successful founders sharing their journeys with up-and-coming tech companies.

The investment range of SNO Ventures is around  €1M.

Eyrir Sprotar

Eyrir Sprotar was established by Eyrir Invest, a firm with a successful history of investing in start-ups and growth companies. The investment philosophy of Eyrir Sprotar matches with Eyrir’s “Buy & Build” approach, focusing on supporting promising ventures for international growth and value creation.

Similarly, the network takes an interest in investing in guiding seed and early-stage companies that have the potential to scale internationally. The investors are often focused on long-term thinking and make investments that will generate massive ROI within 4-5 years.

The investment range of Eyrir Sprotar is around  €3M.

Smedvig Capital

Located in the UK (London), Smedvig Capital is also a well-known VC firm that invests in startups. Smedvig Capital commits over  €2 billion to private equity, both directly (as lead investors in the growth-stage UK and Nordic businesses) and as limited partners via carefully selected private equity and venture capital managers.

Investors prefer companies that can scale internationally and are based on ideas with minimal competition. They also focus on startups in tech and many other sectors, depending on the growth potential of the startup.

The investment range of Smedvig Capital is between  €5M to  €20M.

How To Get A Warm Introduction to Angel Investors?

When pitching to angel investors, most startup leaders are always worried about the first exchange of sentences. 

However, the problem can be easily solved if you can get a warm introduction or somehow, introduce your startup before the investor meeting. Don’t understand it? let me explain:

Networking

The best way to get a warm intro is by expanding your networks. You can do this by attending different startup events and participating in extra activities. Meet with angel investors, and try to create new networks with them so they know your ideas and personality.

A Soft Pitch

If you’re trying to interact with an angel about your startup idea and get a warm introduction, always convey a soft pitch. A soft pitch is more of a regular conversation rather than a presentation. Keep it short, but add the most important points of your business that would attract the investor.

Be Professional

Once you have talked with the investor and developed a connection, it’s time to act professionally. Draft your pitch as a straightforward request displaying the important points.

Wrap-Up

In short, remember that not every VC firm is meant to become the investor for your startup. Even if you are pitching in the best way, some investors may have different interests and they might not fund your business.

Regardless, as a startup leader, always stay motivated and keep trying different tactics while pitching to VC firms. 

Good Luck!

Frequently Asked Questions