- Icelandic venture capital firm Frumtak Ventures closed an $87 million fund to focus on software, AI, and deeptech.
- The firm hasn't disclosed its returns yet for the third and fourth fund, but as per general partner Andri Heiðar Kristinsson, their second fund performed very well.
Iceland's startup scene is thriving largely because its tech ecosystem is maturing. In 2023, Iceland attracted the highest venture capital per capita among Nordic countries, though its small population of under 400,000 influences this. More significantly, foreign co-investments in Icelandic startups hit a record high in 2023.
Headquartered in Reykjavík, Frumtak Ventures just closed an $87 million fourth fund significantly larger than its third $57 million fund. For the past 15 years, Frumtak Ventures has mainly invested in B2B SaaS startups at the seed or Series A stage. With the recent closure of its Fund IV, Frumtak intends to broaden its focus.
The funds will be used to capitalize on opportunities at the intersection of software, AI, and deeptech, particularly in industries aligned with Iceland’s historical strengths like ocean tech, logistics, healthcare, travel, energy, climate, and gender equality.
Frumtak Ventures is a venture capital firm led by serial entrepreneur and managing partner Svana Gunnarsdottir, along with general partners Ásthildur Otharsdóttir and Andri Heiðar Kristinsson.
The firm hasn't disclosed its returns yet, and its third fund is too new to report on. However, general partner Andri Heiðar Kristinsson mentioned that their second fund performed very well.
Edited by Harshajit Sarmah
