The Startup Ecosystem of Norway

The Norwegian startup ecosystems are highly collaborative, with a strong network of both public and private sector stakeholders. The country benefits from a high level of technology and innovation while prioritizing assistance to startups and entrepreneurs via a robust public sector support system. Norway has a long tradition of private-public partnerships in business initiatives. This active involvement from the government side has made Norway one of the top business friendly countries and has created a regulatory framework that is welcoming for startups and investors. The government not only takes a stake in large corporations, but invests in small businesses and startups all around the country through different funds and organizations.
Noteworthy examples are Innovasjon Norge, an organization stimulating innovation and entrepreneurship, as well as Investinor and Startup Norway, two well-known and active startup investment organizations. The ecosystem has gained more recognition recently, as both foreign and domestic entrepreneurs and investors have discovered the opportunities and excitement of the Norwegian startup landscape. Nevertheless, Norway is still underperforming compared to other Scandinavian countries like Sweden, which started developing their startup ecosystems as strategic assets decades ago. Furthermore, the stability and security of the Norwegian economy can discourage risk-taking. The country has a small population of roughly five million people, which limits its talent pool and incentivizes talent acquisition from other countries. Norway also has one of the highest costs of living in the world, and lags behind its Nordic peers in terms of private investment in the tech sector.
But there are startup success stories. In fact, Norway celebrated 2021 with its first three unicorns: Gelato, Cognite, and Oda. The country continued to add success stories to the list with Dune Analytics, and has multiple contenders lined up to join the unicorn club. This signals that Norway’s tech sector has undergone rapid growth in recent years.
Overall, Norway is a rich country with a stable economy, a talented employment pool, and an extensive social safety net. It is also important to celebrate the high female participation in startup teams, and Norway’s strong orientation toward a greener economy. All these factors increase the incentives for entrepreneurship even when considering the substantial associated costs.