Leo Capital Sets Up Nordic HQ in Helsinki and Launches a €25M Fund 

Singapore-based venture capital firm Leo Capital has set up its Nordic headquarters to bolster support for regional B2B startups. As part of this expansion, the firm has introduced its €25 million Europe Fund I, which is exclusively focused on the Nordic region, marking its first fund dedicated to Europe.

The new €25 million Nordic Fund has already achieved its first close, receiving backing from anchor investor Business Finland Venture Capital, along with a mix of both returning and new global investors. This move underscores Leo Capital’s commitment to investing in the thriving tech ecosystem within the Nordic area.

Established in 2018, Leo Capital has previously overseen three funds primarily targeting the APAC region and has been actively investing in Europe since 2021. Their successful portfolio includes notable companies such as Apica, Atoa, and Eir. The introduction of Europe Fund I represents a significant advancement for Leo Capital as it expands its investment efforts into the Nordic startup ecosystem. Business Finland Venture Capital has made an anchor investment in this fund, demonstrating confidence in Leo Capital’s strategy despite the current challenging market environment.

Shwetank Verma, Co-founder of Leo Capital, stated, “Europe Fund I continues Leo Capital’s successful strategy of investing in the world’s most capable, ambitious, and resilient founding teams.” He emphasized the firm’s commitment to partnering with founders, merging their vision with Leo Capital’s networks and resources to accelerate their growth and achieve global aspirations.

Leo Capital’s decision to establish operations in Finland stemmed from participation in the 90 Day Finn program, an initiative aimed at attracting international entrepreneurs and investors to Helsinki. Verma expressed enthusiasm for Finland, noting, “For us, Finland is exciting because we see parallels with what we know best in Singapore,” highlighting the combination of government support, talent, and entrepreneurial spirit present in both regions.

While the Nordic region is known for its openness and global outlook, there is a notable gap in later-stage funding despite the accessibility of early-stage investments. Verma pointed out that one of the challenges in Finland is the local nature of funds, stating, “To elevate Finland’s success stories, we need to attract larger international funds and investors.” The entry of Leo Capital into Helsinki’s ecosystem is a significant step toward addressing this challenge and supporting Finnish startups in scaling globally, particularly in the U.S. market.

The Nordic region is recognized for its openness and global outlook, creating an attractive environment for international funds. While early-stage financing is relatively easy to secure, there remains a significant gap in later-stage funding. Leo Capital intends to address this issue by leveraging its resources and network to support Finnish startups in their growth journeys.

Johanna Huurre, Business Director at Helsinki Partners, noted, “One of the challenges in Finland is the relatively small and local nature of funds. To elevate Finland’s success stories, we need to attract larger international funds and investors.” She emphasized that Leo Capital’s entry into Helsinki’s ecosystem represents a crucial step in achieving this goal and enhancing the overall investment landscape in the region.

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