Finland's Ambitious Bid to Become Europe's Start-Up Leader

Helsinki, Finland — As construction workers lay the foundation for what is expected to be the largest start-up campus in Europe, Finland is positioning itself to reclaim the title of Europe’s start-up capital. The expansion of Maria 01, a co-working and event space located in Helsinki, is central to this initiative. Currently housing around 240 start-ups, Maria 01 occupies six buildings that previously served as the city's first hospital, established in the 19th century.

A Thriving Ecosystem for Innovation

Maria 01 has become a noteworthy hub for various sectors, including health technology, artificial intelligence, cybersecurity, gaming, and defense technology. CEO Sarita Runeberg emphasized the importance of community within the space, stating, "We bring people together so they can network… and find different kinds of resources to grow their businesses." The facility offers more than traditional office amenities, including pool tables, table football, and, uniquely Finnish, a sauna.

Since its inception in 2016, Maria 01 has received more than €6 million in funding from the city of Helsinki. Runeberg projects that the campus will expand by an additional 50,000 square meters with the completion of three new buildings by 2028. Later this year, the start-up hub will introduce an accelerator program aimed at supporting high-growth businesses.

Measuring Finland’s Start-Up Landscape

The current and former companies within Maria 01 have collectively secured over €1 billion in funding, accounting for approximately 40% of all early-stage funding received by Finnish start-ups annually. Ruben Byron, co-founder of a cloud services start-up catering to AI developers, shared his experience of growing his team from a few members to about 40, citing the supportive environment at Maria 01 as crucial to his success.

Despite being relatively less known on the international stage compared to established counterparts like Sweden or the UK, Finland has steadily made its mark in the tech field over the past two decades. The country, home to a population of around 5.6 million, has produced 12 unicorns, including notable businesses like the sleep and fitness tracking device Oura and game developers Supercell and Rovio.

A report from Startup Blink ranked Finland’s start-up ecosystem as the 7th best in Western Europe, citing various factors such as infrastructure, state support, and community collaboration initiatives like the annual global gathering known as Slush.

Government Support and Challenges

The new Finnish government, which took office in 2023, is working to enhance the ecosystem further. Marjo Ilmari, who leads the start-up services at Business Finland, noted that the agency invested €112 million in start-ups in 2024, marking a 30% increase from the previous year. “The real goal is to create an environment where our ground-breaking start-ups can emerge and really tackle global challenges,” Ilmari stated.

Finland aims to attract global talent by offering start-up permits to international founders interested in establishing their companies in the country. These entrepreneurs may receive support packages that include advice, grants, and resources for their initial phases. Lalin Keyvan, a Turkish entrepreneur currently at Maria 01, attributed her move to Finland to the appealing support mechanisms available to start-ups.

Despite these encouraging developments, Finland faces challenges to compete with more established hubs. Sweden, for example, boasts over 40 unicorns and has attracted more than $29 billion in venture funding over the last decade, significantly higher than Finland’s total of just over $8 billion.

Looking Ahead

Mikael Pentikainen, CEO of the Federation of Finnish Enterprises, raised concerns about declining satisfaction among entrepreneurs regarding government actions, particularly following a recent VAT increase. This change can potentially impact Finland’s competitiveness in attracting international start-ups. Moreover, stricter citizenship requirements could deter foreign entrepreneurs.

Back at Maria 01, founders like Jack Parker remain optimistic about the future of Finland’s start-up ecosystem. However, he cautioned against losing the intimate networking atmosphere that often characterizes smaller communities. “The advantage of the ecosystem right now is this kind of 'small town, everybody knows each other' [feeling]," he said, indicating that growing too fast could impact this dynamic.

As Finland pushes to solidify its status as Europe’s start-up capital, the balance between growth and community will be critical in shaping a sustainable future for its tech landscape.