Swedish startups on recovery – deeptech in the lead

The last few years have been tough for the startups that are part of an incubator. In 2025, things are turning around. Capital increased by 22 per cent and deeptech now takes 41 per cent of all invested private capital.

Startups in the National Incubator Programme (NIP) attracted more than SEK 1.2 billion in invested private capital in 2025, an increase of 22 per cent compared to 2024. The figures from InkRapp, the national reporting system for incubators, show a changing ecosystem.

Capital returns and concentrates in deep tech

2022 was a record year. Start-ups raised SEK 2.5 billion in equity capital. Since then, inflation, recession and geopolitical uncertainty have depressed the market. 2025 saw a turnaround.

Private capital invested (SEK billion), 2021-2025. Deeptech companies attracted around SEK 496 million, 41 per cent of the total.

– Fewer start-ups received capital, but the overall volume increased. Investors are more selective, but invest more per startup once they get in. The portfolio has matured.” says Jonas Michanek, VP Incubation, SISP.

Deeptech is the most visible movement of the year. Deeptech start-ups accounted for 26 per cent of the companies admitted to the incubators, but attracted 41 per cent of the total private capital invested, SEK 496 million.

Deeptech share of admitted startups: 26% (2025) vs 29% (2024). Deeptech attracted 41% of all private capital in 2025.

“Capital is moving towards deep tech. These start-ups are harder to build and take longer to commercialise, but investors see the potential. 41 per cent of equity capital went to deep tech in 2025. We expect that shift to continue.”

Life sciences dominate. The industry doubled its capital volume.

Life Science continues to dominate with 49 per cent of private capital invested in 2025. 75 startups in the sector attracted SEK 586 million. Industry came second: 26 startups attracted SEK 228 million, almost double the amount in 2024. Software and ICT accounted for 17% and Environment and Energy for 8%.

Industry distribution of private capital invested (volume, 2025). Life sciences dominate with 49 per cent.

“Life sciences have long held a strong position, reflecting the breadth of university-affiliated incubators. But the rise in industry and deep tech is new. It points to a more specialised ecosystem.”

Every public dollar attracts 4 private dollars

The leverage effect is one of the strongest arguments in favour of the programme: for every public dollar, on average 4 private ones are attracted. Between 2018 and 2025, 80% of all funding for startups in incubation came from private sources and 20% from public sources.

Funding volume by categories for startups in the national incubator programme 2018-2025. 80% private. Public 20 per cent of total funding.

“You invest one public dollar and private actors follow with four. It’s not a subsidy discussion. It’s an investment in future growth and jobs, and the leverage effect lasts despite shifting market conditions.”

Admission rates stabilise in line with national trend

In 2025, 292 new start-ups were admitted to incubation, essentially unchanged from 2024 (290). The decrease since 2022 reflects the national decline in newly registered companies. The acceptance rate remains at just under 7 per cent of evaluated ideas.

Admitted to incubation indexed against national start-ups. Index 2022 = 100 (peak year).

“We have maintained a stable level of admissions despite a weaker start-up market. The incubators have not lowered the bar. The admission criteria are high.”

At the end of the year, 710 startups were in incubation, 183 of which are classified as deeptech. In 2025, 233 startups completed incubation and became alumni.

Incubator alumni: 16,000 jobs and 31 billion in turnover

In 2024, start-ups that are or have been affiliated with NIP employed more than 16 300 people. The total net turnover was SEK 31 billion, an increase of 14 per cent.

– It is not about new start-ups in a vacuum. It’s an ecosystem that brings jobs, growth and innovation year after year. That is what we are here for.” concludes Jonas Michanek, VP Incubation, SISP.

The data is taken from InkRapp and Vinnova’s annual report for the National Incubator Programme, financial year 2025.