The Nordic startup scene continues to thrive. Neil Murray, founder and general partner of Copenhagen-based The Nordic Web Ventures, recently announced the successful closing of Fund III, totaling $6 million. This fund is dedicated to supporting early-stage founders across the Nordic region.
Fund III aims to provide initial institutional investments for companies specializing in robotics, AI-native solutions, and deep tech innovations.
As a solo General Partner, Murray described his initial two funds as ‘test vehicles’ designed to demonstrate his capability in identifying and backing leading talent within the region. Over seven years, he has made initial investments in over 50 companies. His portfolio includes the unicorn Lovable and the remote worker insurance provider SafetyWing, alongside successful exits such as the UI design company Uizard.
The Nordic ecosystem, encompassing Denmark, Sweden, and Norway, has reached a valuation exceeding half a trillion dollars and attracted over $8 billion in venture funding in 2024, establishing it as a prominent emerging market in Europe. Despite investor interest surpassing $20 million for Fund III, Murray chose to cap it at $6 million, prioritizing ‘alignment over AUM’ (Assets Under Management).
Maintaining a smaller fund size allows for a stronger link between incentives and performance, rather than relying solely on management fees. This approach, particularly as a solo GP, also offers greater flexibility.
He stated that capping the fund was not a limitation but a deliberate strategy.
Individual investments from the fund will be approximately $200,000, with an aim to support 30 to 35 companies. Murray emphasized the importance of investing in ‘Tier 1 founders’ over ‘Tier 2 founders’ and avoiding excessive optimization for ownership.
Fund III’s limited partner base features institutional investors like Allocator One, founder Christoph Janz, and Pacenotes. Additionally, founders from companies such as Kahoot and Pleo, along with operators from Meta and Google, are also LPs.
Murray noted that numerous founders from his previous two funds have invested in the new fund, a metric he considers highly significant. He also mentioned having already returned over half the capital raised across Fund I and Fund II.
Fund III’s strategic focus areas include AI, robotics, and consumer sectors, identified as leading categories within the Nordic region. The consumer sector has consistently been a strong area, as previously discussed in a podcast about the region.
The Nordic region is recognized for its strong computer science and engineering culture, alongside its manufacturing capabilities. This, combined with a ‘calm methodical build style,’ positions the Nordics favorably for ‘AI-powered robotics in industrial, healthcare, logistics, and increasingly consumer contexts.’
Despite his strong focus on the Nordics, Murray, originally from the U.K., relocated to Denmark in 2013 without prior connections in the country.
He expressed a strong interest in tech startups, having previously worked with digital products in London. Upon moving to Copenhagen, he observed the significant, yet often understated, contributions of the local ecosystem to the tech world. This observation prompted him to launch ‘The Nordic Web’ website, which documented developments within the burgeoning regional tech scene.
Through the website, he tracked investments and exits, leading to venture capitalists seeking his insights on founders in search of capital. Murray then decided to become directly involved in investing, launching Fund I with $500,000 in 2017. He subsequently ceased writing for The Nordic Web to concentrate on his investment activities, which ultimately led to the current fund.
Murray concluded that the Nordics are not merely experiencing a fleeting ‘moment’ but rather a sustained period of compounding growth. The region’s deep talent pool, high ambition, and mature ecosystem indicate that the current wave represents a foundational shift for the next decade of successful Nordic companies, rather than just a temporary spike.
