Leo Capital expands to Europe with new €25M Nordic fund 

• Leo Capital, a Singapore-based venture capital firm, expanded to Europe in late 2023, choosing Helsinki due to its strong tech talent and engineering legacy.
• In August 2024, the VC announced the first close of its new €25M Nordic Fund, supported by anchor investor Business Finland Venture Capital, along with a diverse group of returning and new investors from around the world.
• Leo Capital aims to assist Finnish startups in scaling globally, especially in the U.S. market. They bring expertise in building cross-border teams and a USA go-to-market strategy, helping startups overcome challenges in talent acquisition and market expansion.
• The 90 Day Finn Program played a large role in Leo Capital’s successful entry into the Finnish market.

Expansion to the Nordics

Founded in 2018, Leo Capital, a Singapore headquartered venture capital firm, is known for investing in early-stage B2B SaaS startups across India, Southeast Asia, and the Nordics. The decision to expand into Nordics, particularly Helsinki, was heavily influenced by the city’s robust tech ecosystem and the strong support provided by the Finnish government.

Finland consistently ranks highly in the Talent Competitiveness Index, which is one reason it’s become Europe’s fastest growing unicorn factory. Leo Capital felt that the issue of talent is growing ever more relevant due to the relative scarcity of world-class tech talent, challenges around immigration, and the increased prevalence of remote work and cross-border teams. Leo Capital’s expertise in building tech teams in India creates a strong synergy between what Leo Capital is trying to achieve and what Finland represents. 

The size of the ecosystem is also something to consider when you’re venturing in from outside. Many European countries have big, dense, and competitive ecosystems where getting access to the right people and the right deals can be hard unless you’re deeply embedded in that ecosystem. The Nordics, according to Verma, seemed like a good option thanks to its smaller size, while still packing enough of a world-scale punch to be meaningful to Leo Capital’s vision. A welcoming attitude towards newcomers also tipped the scales in the Nordics’ favour. 

Supporting Finnish Startups in Global Expansion

Leo Capital’s newly launched €25 million fund, Europe Fund I, is the firm’s first dedicated Nordics fund, continuing its strategy of investing in talented and resilient founding teams while leveraging its extensive global network and resources.

Business Finland Venture Capital has made an anchor investment in the fund, highlighting the importance of international capital in accelerating the growth of Finnish startups.

Leo Capital’s strategy revolves around its “India Advantage” playbook, which provides startups with access to world-class Indian tech talent, crucial for global expansion. The firm’s partners, who are serial entrepreneurs and operators themselves, offer hands-on support in overcoming challenges related to talent acquisition and market entry, particularly in the competitive US market.

“In the current funding environment, it is critical for startups to be thoughtful about how to build and scale their business in a capital-efficient manner. Leo Capital has been enabling US-based founders to build capital-efficient businesses since 2018. We are delighted to now be entering Finland and bringing our Leo Advantage playbook to Nordic founders,” Verma added.

Henry Goodwin, Leo Capital Partner, commented: “Europe Fund I continues Leo Capital’s successful strategy of investing in the world’s most capable, ambitious, and resilient founding teams. It is these founders that we are looking to partner with, combining their vision and dynamism with our own networks, resources, and years of cross-border experience to help supercharge their trajectory and realise their global ambitions.”

Helsinki Partners grants access to the Finnish ecosystem 

But how do you take the first step towards entering a new market? For Shwetank Verma, the 90 Day Finn Program hosted by Helsinki Partners was key to making the leap. The program presented a unique opportunity to spend three months on the ground, gaining invaluable insights and establishing crucial connections within the local ecosystem. When it came to expanding the operations of Leo Capital, the 90 Day Finn experience and support offered by Helsinki Partners made Finland a clear choice. 

Beyond the 90 Day Finn program, Helsinki Partners have continued to support Leo Capital’s journey to Finland. From introductions with the right people to opening bank accounts, the journey has been smoother together. 

“The support from Helsinki Partners has been phenomenal. I can’t think of an area where they haven’t been adding value for us right from day one. What’s particularly encouraging about what Helsinki Partners does is, they’re also reaching out on a global level. That’s really important with the way the world and the talent universe are changing. It’s important to see a public body thinking ahead,” agrees Goodwin. 

Learn more about Leo Capital 

Leo Capital invests in early stage, B2B SaaS opportunities in India, SEA and the Nordics. Learn about Leo Capital’s new cross-border LEAP program for SaaS founders and how to pitch to them.