Why Finland Is Attracting International Founders and Investors

At Istanbul Ignited by Slush’D this October, I spoke with founders, investors and incubators about their interest in the European Union. Finland’s potential as a base for international growth was a recurring theme in those conversations.

That interest raises practical questions for anyone considering international expansion or exploring financing opportunities abroad. What does a credible EU presence actually require from a regulatory standpoint? How do you structure the entity to remain attractive for both local and international investors? And at what stage should the legal and corporate groundwork be in place before approaching a financing round?

Looking at recent developments in venture capital in Finland, I see several reasons for founders and investors to take a closer look.

A stronger capital base for financing rounds

Finnish venture capital funds raised a record €678 million in 2025. This represents capital raised by the funds for investment over the coming years. Separately, Finnish startups attracted a record €1.9 billion in investments, with approximately 75% of that funding coming from foreign investors. These figures show both the growing domestic funding base and the importance of international capital to Finnish companies (see for more information: Finnish Venture Capital Association).

The distinction matters when planning funding rounds. A stronger domestic venture capital market can support companies through their early development, while larger rounds may require a broader international investor group. The Finnish Venture Capital Association also identifies the size of domestic funds as a constraint on their participation in later-stage financing.

For me, the practical implication is to think beyond the round you are raising today. Ownership arrangements, investor rights and the company’s financing structure should also work for the next stage of growth and the investors you may want to bring in. Among others, these are the key subjects that we discuss with our clients preparing for financing rounds.

Employee incentives deserve early attention

Capital is nevertheless only part of the picture. A company also needs to recruit and retain the people who will help it grow. Finland’s proposed changes to employee stock option taxation could make equity incentives more practical for employees of unlisted companies.

Under Government Proposal HE 174/2026, payment of the tax attributable to an employee stock option benefit could, subject to specified conditions, be deferred until the year in which the acquired shares are disposed of. The benefit would still be assessed in the year the option is exercised. The proposal therefore concerns the timing of tax payment, rather than making the benefit tax-free (see more from Government Proposal HE 174/2026).

If adopted, the change could ease a difficult cash-flow problem: an employee facing a tax bill while holding shares that cannot readily be sold. When considering an incentive programme, I would look at the proposed conditions alongside the company’s commercial objectives, ownership dilution and the documents needed to put the programme into practice.

Finnish companies are demonstrating international scale

Recent company milestones provide further context. Verda announced that it had reached unicorn status following its September 2026 funding round. Bluefors was also reported to have exceeded a €1 billion valuation, based on the share price in a directed offering (see Verda, Dealroom).

Sensofusion’s listing added another milestone: trading on the Nasdaq Helsinki main market began on 13 October 2026. Together, these developments illustrate different routes through which companies built in Finland can access capital and grow internationally (see more: Sensofusion).

Helsinki also provides a meeting point for the international startup community. Slush brings founders and investors together annually, with the 2026 event taking place on 18–19 November. Such networks can help companies establish the relationships from which future financing discussions develop (see more: Slush).

Prepare the company before financing discussions advance

The question I come back to is what a company needs to do to turn that interest into a completed financing round. An attractive market creates opportunities, but preparation at company level matters just as much.

Ensure that ownership is clearly documented, including any outstanding options or other rights to shares. Equally important is that the key technology and intellectual property are properly assigned to the company through agreements with founders, employees and external developers. Uncertainty over IP ownership is one of the most common issues to surface during investor due diligence, and one of the easiest to prevent with the right agreements in place. Involving a venture capital lawyer early can help you understand those consequences before the main commercial terms are settled. I explore the importance of preparing these matters early in my article on IP preparation.

For founders and investors looking at Finland, my advice is to address the company structure, contractual arrangements and relevant tax questions before negotiations become time-sensitive. That preparation gives both sides a clearer basis for assessing the investment and agreeing how the company will grow.