Spring 2024 saw nearly double the number of funding applications through FiBAN compared to the average of 250 applications in previous years, exceeding 450 applications. The software sector led to a surge in applications. Other trending sectors included defense and security, data analytics, wellness, entertainment, deep tech, and gaming. The representation of women in startups seeking funding remains low, with women-led teams making up only about six percent of all applications, while solely male teams comprised about 50% of applicants.
FiBAN’s Startup Pulse 1/2024: Startup Funding Applications Doubled, One-Third of Startups are AI-Based
Software Leads, AI and Defense & Security on the Rise
The software industry was the most common sector for startup funding applications in the spring of 2024, accounting for about 32% of the applications. Compared to previous years, there was an increase in applications from startups in the wellness, entertainment, gaming, deep tech, and defense & security sectors. Applications from AI startups have risen from over seven percent two years ago to over 30 percent. The rise in the data sector is evident in FiBAN’s deal flow, with significant applications related to data analytics, big data, and cloud computing, highlighting the growing importance of AI technologies.
The increase in defense & security applications can be attributed to the geopolitical situation and FiBAN’s first-ever Pitch Finland DefSec event.
IoT and Blockchain Decline – Sustainability Gains Interest
One clear downward trend in FiBAN’s deal flow is the Internet-of-Things (IoT), with applications dropping by 70% compared to the previous year. Applications for blockchain technology and health tech devices also decreased from previous years.
Around 79% of startups expressed their intention to address a challenge related to the UN’s sustainable development goals, slightly more than in previous years. As in the previous year, these startups’ most popular sustainable development goals were related to innovation and infrastructure, health, and sustainable consumption and production.
Valuations Have Decreased
The valuation levels of companies seeking funding through FiBAN have decreased, averaging two million euros. However, valuations of deep-tech startups remain significantly above FiBAN’s median, at four million euros.
“FiBAN’s data supports the broader message from the startup ecosystem that valuation levels are decreasing. There is variation within sectors, but this seems to be the general trend,” summarizes FiBAN’s data engineer Ivan Helin.
Number of Women Stagnates
Despite numerous efforts to promote diversity, the proportion of women-led teams has remained unchanged in recent years. Only about six percent of companies seeking funding through FiBAN were founded solely by women.
“The number of women in the startup field is a broader societal issue. Angel investing and startup entrepreneurship should not be left solely to men; we must encourage women to invest in startups and to start their own. The importance of examples in this matter is enormous,” emphasizes FiBAN’s CEO Tiina Laisi-Puheloinen.
Interviews and Contact:
Ivan Helin
Data Engineer, Finnish Business Angels Network (FiBAN)
Phone: +358 45 7838 7905
Email: ivan.helin@fiban.org
Tiina Laisi-Puheloinen
CEO, Finnish Business Angels Network (FiBAN)
Phone: +358 40 750 7417
Email: tiina.laisi-puheloinen@fiban.org
FiBAN’s Startup Pulse
FiBAN’s Startup Pulse is a new semi-annual report that comprehensively analyzes FiBAN’s startup application data, trends, and industry changes. FiBAN has been systematically collecting data since 2020.