Frumtak Ventures Secures $87M for Its 4th Fund Aiming at Icelandic Investments

Iceland’s early-stage investment firm, Frumtak Ventures, has proudly launched its fourth fund, Frumtak IV, which totals $84 million. This fund has surpassed expectations, building on the success of the $57 million Frumtak III raised in 2021.

Frumtak Ventures employs a high-conviction, concentrated investment strategy, focusing on entrepreneurs tackling complex real-world challenges through innovative technologies. Although the fund is sector-agnostic, it has predominantly invested in B2B SaaS startups at the seed or Series A stages.

With Fund IV, Frumtak Ventures aims to further capitalize on opportunities at the intersection of software, AI, and deeptech, particularly in sectors where Iceland has established strengths, including ocean technology, logistics, healthcare, travel, energy, climate, and gender equality.

Recent data indicates that international interest in Icelandic companies is rising, fostering a burgeoning innovation sector known for its resilience. According to a 2023 report from the Icelandic Angel & Venture Capital Association (Framvís) and KPMG, foreign investment in Icelandic startups has tripled year over year, reflecting the country's startup ecosystem's robust growth—now the highest in invested capital per capita among Nordic nations.

Prominent companies in Iceland’s dynamic tech landscape include Sidekick Health, a pioneer in digital therapeutics, and Controlant, an innovator in pharma supply chains. Frumtak Ventures was an early investor in both companies.

Sidekick Health, which received its first investment in 2017, collaborates with five of the world's leading healthcare firms, including Pfizer, Bayer, and Eli Lilly. Recently, it expanded its service offerings through the acquisition of cancer support and women’s health specialist Pink!, achieving an impressive 80% compound annual growth rate.

Controlant, the recipient of Frumtak Ventures’ first investment in 2011, has been recognized as one of Europe’s Top 25 fastest-growing companies by the Financial Times. The company, with its headquarters in Iceland and a network that spans the US, Denmark, Poland, and the Netherlands, partnered with Pfizer during the COVID-19 pandemic to aid in vaccine distribution.

Other high-growth companies in the Frumtak Ventures portfolio include Treble (sound simulation technology, invested in 2023), Plaio (visual planning solutions for the generic pharma industry, invested in 2021), 50skills (hiring and onboarding software, invested in 2022), Abler (sports management technology, invested in 2022), and Alda (workplace culture inclusion software, invested in 2022).

Managing partner Svana Gunnarsdóttir stated, “Frumtak Ventures was created by entrepreneurs, for entrepreneurs. Our portfolio companies exemplify our commitment to empowering ambitious founders, ensuring they have the unique toolkit needed to thrive and scale.”

Gunnarsdóttir added, “Iceland has navigated numerous challenges, developing expertise in various homegrown industries while embracing innovation for future growth. With Frumtak IV, we are ready to support the next stars in these sectors as a sector-agnostic fund. We appreciate our investors for their continued support as we proudly close four funds in 15 years, aiming to fuel the next wave of success in the Nordic ecosystem.”