Venturing Through Economic Disruptions An In-Depth Analysis of Early-Stage Venture Capital in Sweden and Strategic Guidelines for Startup Success in Economic Challenging Times

Abstract

This thesis thoroughly investigates the impact of economic disruptions from 2019 to 2023 on early-stage venture capital in Sweden. It focuses on shifts in investment decisions during financial disruptions, aiming to clarify how economic fluctuations influences investors' decision-making. The study also provides tailored guidelines for Swedish startups to navigate effective capital-raising in recessions. Using a qualitative approach with semi-structured interviews of twelve investment managers and fund managers from major Swedish venture capital firms, the research identifies key findings. Key findings include reduced capital supply in 2023, heightened risk aversion, and a focus on sustainable solutions. The study draws parallels with historical disruptions, emphasizing the importance of a proficient team, early fundraising initiation, a competitive product, dynamic capabilities, and detailed business plans and road maps for startups navigating economic recessions. The implications offer practical guidelines for startups and suggest potential areas for further research, contributing to a nuanced understanding of investment dynamics in Sweden's evolving venture capital landscape during economic uncertainties.