Is Sweden a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Sweden has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Sweden gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Sweden

Funding is one of the most critical ingredients in building a successful startup – and Sweden offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Sweden has a dynamic early-stage funding scene, supported by various players. Notable VC firms active in the early stages include Creandum, Northzone, and EQT Ventures. Government agencies like Vinnova and Almi Invest also provide crucial grants and loans to innovative startups, often without requiring equity. Angel networks, such as Propel Capital, are also significant, actively investing in pre-seed companies. Despite this support, challenges exist. While Sweden is a strong market, there has been a decline in overall funding compared to peak years like 2021-2022, and early-stage funding saw its lowest point in Q3 2023. Startups can face difficulties raising sufficient capital due to macroeconomic uncertainty and investors prioritizing profitability over growth. Additionally, accessing early-stage venture capital can be harder outside major metropolitan areas.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Sweden has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Sweden boasts a strong innovation culture, consistently ranking high globally. Entrepreneurial activity is significant, though recent reports indicate a slight decline in early-stage ventures and angel investors. The ecosystem is rich with coworking spaces, particularly in hubs like Stockholm, Gothenburg, and Malmö. Numerous tech events and conferences facilitate networking and knowledge sharing. While competitive programs exist, there is also a focus on providing tailored coaching and support for early-stage founders through incubators and accelerators like Sting and Create Business Incubator. Government agencies like Vinnova and Almi also offer funding and advice to new businesses. Angel investors actively provide capital and mentorship to early-stage tech startups.

For many entrepreneurs, the energy and resources available in Sweden can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Sweden, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Sweden is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Sweden has a strong talent pool for startups, fueled by top educational institutions like KTH Royal Institute of Technology and Lund University, known for technology and business programs. The country excels in industry-specific skills, particularly in tech, gaming, design, AI, cloud computing, and sustainability. Local talent supports entrepreneurial growth through a skilled workforce, a culture of innovation, and a cycle where former employees of successful startups become founders and investors. While there can be competition for skilled workers and some immigration process challenges for non-EU talent, Sweden's high quality of life and supportive ecosystem attract professionals.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Sweden can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Sweden boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Sweden offers a robust ecosystem for startups, featuring numerous innovation hubs, incubators, and accelerators, particularly in cities like Stockholm, Gothenburg, and Malmö. These provide essential resources like workspace, mentorship, and networking opportunities. Key players include Sting and SUP46. Government initiatives significantly bolster the ecosystem. Agencies like Vinnova and Tillväxtverket offer substantial grants and loans, often targeting technology and sustainability sectors. Almi provides loans and advice, while the Swedish Public Employment Service offers start-up grants to jobseekers. Policies also reduce administrative burdens and offer tax incentives. This comprehensive support system helps startups access funding, expertise, and networks crucial for growth.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Sweden. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Sweden Be Considered the Best Place to Launch a Startup?

There’s no doubt that Sweden provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Sweden face several challenges. Competition is significant, with Sweden having a vibrant startup scene and a high number of unicorns per capita, particularly in Stockholm. The cost of living, especially in major cities like Stockholm and Gothenburg, is high, which can make it difficult to attract and retain talent and increases operational costs. Regulatory issues also pose hurdles. While generally supportive, navigating the regulatory landscape can be complex, particularly in sectors like fintech and healthcare. Startups, especially in fintech, report regulations like AML/CTF and GDPR as burdensome, requiring resources for compliance.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Sweden or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Sweden offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash