From life science to fintech, explore the 9 best industries in Sweden

Although parts of the European market, such as public stocks, have recently experienced a downturn, there are still areas of potential for investors. Following up on our coverage of how Swedish private equity weathered volatility in 2022, we take another look at the Swedish market and what investors are targeting. In this blog, we highlight the best industry verticals in Sweden by invested capital and some of their relevant statistics.

*Based on platform data collected on February 2, 2023. Data is subject to change.

1. Production

Total invested capital: €159.6 billion
Offers in Sweden: 4,713
Median deal size: €4.3 million

Manufacturing is a major contributor to the Swedish economy, with companies in the vertical contributing 20% ​​of the country’s total GDP in 2020. Sweden’s most manufactured items are steel, automotive components, industrial equipment and food processing equipment, with some of the best. manufacturers including the Absolut Company and Veoneer. The largest deal related to this vertical was for Swedish Match, a smokeless tobacco company acquired by Philip Morris International through an M&A deal for €15.2 billion.

2. TMT

Total invested capital: €149.5 billion
Offers in Sweden: 9,037
Median deal size: €1.6 million

Like other Nordic countries, Sweden has a strong technology, media and telecom (TMT) presence, with 93% of citizens having internet access at home in 2021. As such, Sweden is home to a number of web and telecom-based companies, such as GlobalConnect, an internet service provider which not only provides services to Swedish households, but also users in Norway, Denmark, Finland and Northern Germany. Sweden’s most important TMT deal was the purchase of the industrial technology supplier Hexagon for 17.3 billion euros.

3. Industry

Total invested capital: €101.3 billion
Offers in Sweden: 4,541
Median deal size: €3.5 million

Like production, industries also play a significant role in Sweden. The industrial vertical, as captured on PitchBook, is characterized by the provision of industrial supplies and services, distribution operations and transportation services. It is exemplified by companies such as Volvo, which in addition to producing motor vehicles is also responsible for infrastructure work and power solutions for industrial and marine applications. The biggest deal in Swedish industry was for Scania CV, which specializes in sustainable vehicles for both the transport and construction sectors, and was acquired for 6.5 billion euros.

4. Mobile

Total invested capital: €35.2 billion
Offers in Sweden: 2,410
Median deal size: €0.9 million

Given Sweden’s affinity for telecoms and technology, it may not come as a surprise that the country is also behind a number of successful mobile apps and services. For example, the online finance service buy-now-pay-later, Klarna, is based in Stockholm, as is the music streaming platform Spotify. Other important companies in Sweden that fit into this vertical include Paypal subsidiary Zettle and Embracer Group, which owns various game developers. The biggest deal on the Swedish mobile market was for Minecraft, which was acquired by Microsoft for 1.9 billion euros.

5. Cleantech

Total invested capital: €27.4 billion
Offers in Sweden: 1,708
Median deal size: €1.2 million

Sustainability is a valued quality for companies in Sweden – so much so that the Swedish government has even given funding to sustainable startups through the Swedish Energy Agency. This vertical includes a wide range of businesses, from the environmentally friendly electric car batteries produced by Northvolt to Bergvik Skog Öst, which runs forest development work in Sweden. The biggest Swedish cleantech deal was the acquisition of Stockholm Exergi, led by APG Group, which bought a controlling stake in the utility for 3.6 billion euros in 2021.

6. Oil and gas

Total invested capital: €24.7 billion
Offers in Sweden: 275
Median deal size: €5.3 million

With limited access to fossil fuels, Sweden is mainly dependent on imported fuel sources. Despite significant pressure on renewable energy, the country remains dependent on oil and natural gas, which accounts for the prominence of this vertical. Oil and gas companies include refineries such as Preem and oil exploration services such as those offered at the Johan Sverdrup oil field. The largest deal within this vertical was the acquisition of Lundin Energy, an oil and gas production company, by Aker BP for 13.2 billion euros.

7. Life sciences

Total invested capital: €23.6 billion
Offers in Sweden: 1,476
Median deal size: €1.9 million

Sweden is a very productive country with a specific focus on healthcare when it comes to life sciences. This is reflected in healthcare companies, which include all the largest agreements within this vertical. These companies include services such as diagnostics, as seen in the company ImmunoDiagnostics, a subsidiary of Thermo Fisher, and Q-Med, which specializes in medical implants. The most important life science deal in Sweden was for the drug discovery company Swedish Orphan Biovitrum drug, which treats rare diseases in hematology and immunology. It was bought for 6.9 billion euros.

8. SaaS

Total invested capital: €23 billion
Offers in Sweden: 2,534
Median deal size: €1 million

Software as a service (SaaS) is an emerging industry in various parts of the world, and Sweden is no exception. It is built on the distribution of customized, often subscription-based, software solutions that are hosted by the developer rather than the client company. The largest deal related to the SaaS vertical involved Nasdaq Stockholm, which offers an automated securities trading platform, and was acquired in 2008 for 4.4 billion euros.

9. Fintech

Total invested capital: €18.9 billion
Offers in Sweden: 968
Median deal size: €1.7 million

Despite recent setbacks in the European fintech market, there is still a lot of capital being allocated to startups and investors who continue to see potential, making fintech companies in Sweden a place to watch. When looking at some of the most highly valued companies in fintech, Stockholm stands out as a hub for many of its frontrunners, including payment processing platforms Worldine and Point International. The highest valued deal in Swedish fintech was Visa’s acquisition of Tink, an online open banking platform, for 1.9 billion euros.

Frequently Asked Questions

What are life sciences?
Life science is a collective term for various disciplines related to human life, plants, animals and microorganisms.

What is another name for life science?
Biology is the study of life and the life science classification includes it and fields such as anatomy, genetics and neuroscience.

How many fintech companies are there in Europe?
According to the PitchBook Platform, there are just under 10,000 fintech companies in Europe.

Why does Sweden have so many technology companies?
Sweden’s technology company growth is a result of market reforms from the 1990s which included government investment in providing computers and internet access to Swedish citizens.

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