After an eventful end of June in Icelandic news – we elected a new president, and kept on owning the Euro 2016 – we bring you the quarterly funding report.
Next Monday’s Memo will be dedicated to commentary on the funding report results. We highly recommend you sign up here.
As a reminder, our methodology is the following:
- We base the timing of the investment on when it’s announced. This is done to keep consistency between us and other investment trackers. (Note: our first analysis had a different method to this. We decided to change this in hindsight, to be better in sync with other media like The Nordic Web and Tech.eu)
- The exception to the rule are investments that won’t be announced. We receive information on investments regularly, and sometimes are asked not to create special announcements about them. We, of course, respect these wishes.
- All numbers are based on the total amount invested when announced, not when the companies receive the funds. This is often on a milestone basis (50% of investment at signing, 50% after a milestone). We don’t track those milestones etc.
- We don’t include follow-on investments except if they’re specifically announced (like bridge rounds).
Now, let’s get to it.
We have four disclosed investments in the quarter; Tulipop, DTEquipment, SolidClouds, and 3Z. This quarter was slow for Icelandic startups, and we see a drop from seven investments in the quarter before. We didn’t record any exits.
Absent from this quarter was a $3m+ investment, which as we see later, lowers the average round size considerably. Also, unlike the last two quarters, all funding received was Icelandic. No foreign money this time around, which might explain the absence of big rounds.
Comparison to previous quarters
We see a drop in investments between quarters. We had nine investments in Q4 and four in Q2. That’s a 55% drop in two quarters.
The drop in total amount invested is bigger.
Obviously, most of that drop can be accredited to CCP’s $30m investment from NEA. However, if we account for CCP’s investment — that is, don’t count it — there’s still a considerable drop in total capital deployed.
From $15.6m to $4.31m is an approximately 72% drop in deployed capital, which is higher than the drop in amount of investments. The average funding round also drops by over 50% between quarters — we saw fewer, smaller rounds.
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Comparison to the Nordics
Unlike the aggregate of the Nordics, which over the last three quarters (Q4/2015 – Q2/2016) has grown, the Icelandic numbers took a dive.
In Q4/2015, Iceland’s investment numbers accounted for more than 12% of the total activity in the Nordics. This quarter it was down to 1%.
Note: Data in this chapter on the aggregate from the Nordics was supplied by The Nordic Web.
The VC funds
In total, the funds have around 2.5bn ISK ($20m) available for fresh investments.