Sweden’s startups will raise $5 billion in 2026. Our secret sauce is 150 years old

Sweden's startups are poised to raise $5 billion in 2026, a significant increase from $3.2 billion in 2025. This growth is attributed to the innovative spirit of local founders, who are building upon a rich legacy of invention dating back to the late 19th century. The country's success is not a fleeting moment, but a result of a 150-year-old blueprint for corporate success.

Key ingredients include fostering an inventor-friendly environment, investing heavily in research and development, and cultivating a culture of decency. Sweden has a long-standing tradition of inventor-friendliness, with strong patent filing rates and a well-educated populace. The government's commitment to R&D, the highest in the EU, enables the development of deep-tech, industrial, and life science industries, which require longer-term success strategies.

Furthermore, the Swedish culture of decency creates an environment where engineers can take risks without jeopardizing their families' well-being, and successful entrepreneurs feel a responsibility to support future innovators. As Sweden continues to punch above its weight, it is poised to maintain its position as one of Europe's most investable innovation economies.