Amid increasing interest in Icelandstechecosystem, Reykjavik-based Frumtak Ventures has closed a $87M fund aimed at local startups.
This is the venture capital firms fourth fund, following a $57mn predecessor in 2021.
While sector-agnostic, Frumtak Ventures has so far mostly invested in B2B SaaSstartupsat the seed or Series A stage.
The new fund will focus on the intersection of AI, software, and deeptech.
The lifetime of the fund is 10 years with a possible three-year extension.
Half of the capital will be reserved to follow through the growth of the selected companies.
This translates to 73 per every of the approximately 382,000 inhabitants.
Iceland also held the top position in 2022.
Last year, Icelandic startups sawa threefold increasein foreign investment compared to 2022 levels.
Active in Icelands VC scene since 2008, Frumtak has invested in numerous high-growth companies.
Story byIoanna Lykiardopoulou
Ioanna is a writer at TNW.
With a background in the humanities, she has a soft spot for social impact-enabling technologies.
