According to Sifted, Sweden’s AI-native startups have raised more than €454 million across 28 deals so far in 2024, which absolutely dwarfs the €124 million they raised across 16 deals during the same period last year. The standout performers include vibe coding leader Lovable, which pulled in $15 million at the start of the year followed by a massive $200 million round in July, while legal tech startup Legora secured $80 million in May and another $150 million in October. Project Europe, an accelerator backed by top European founders, has already invested in Swedish startup Zellify and is actively hunting for more opportunities. The organization’s chief of staff Jade Yarrow notes Sweden has developed a unique culture where young people are encouraged to build great things, with role models proving you can create brilliant AI companies from within Europe. Recent successes also include AI research lab Tzafon raising $9.7 million in July and the “Chrome killer” browser Strawberry securing $6 million from General Catalyst and EQT Ventures.
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The cultural transformation
Here’s the thing that really stands out – Sweden’s startup ecosystem has undergone a dramatic transformation in just the past decade. Sara Landfors, CEO of AI agents startup Normain, put it perfectly when she said the ecosystem today is nothing like it was 10 years ago when she could compare it to Stanford’s scene. We’re seeing a generational shift where university students are now thinking about founding companies immediately after graduation rather than taking traditional corporate jobs. And the infrastructure has evolved to support this – there are hacker houses where 19-year-olds can immerse themselves in building, and engineers from successful companies like Lovable might just drop by to collaborate. It’s creating this flywheel effect where success breeds more success.
Why Sweden works for AI
So what makes Sweden particularly good at producing these AI-native companies? They’re not just adding AI features to existing products – they’re building from the ground up with AI as the core offering. Look at Lovable with their “vibe coding” approach or Strawberry positioning itself as a Chrome replacement rather than just another browser. They’re thinking bigger from day one. And they have these incredible role models – Spotify, Klarna, Voi – that prove you can build global tech giants from Sweden. But here’s the real advantage: they’re not trying to be Silicon Valley. They’re building distinctly European companies that leverage local talent and culture. Project Europe is betting heavily on this approach, recently co-hosting a 20-hour hackathon in Stockholm and planning more trips to scout talent.
The talent gold rush
The hiring numbers tell their own story. Swedish AI companies took three of the top five spots on Sifted’s list of Europe’s fastest-growing agentic startups by headcount. Lovable, Legora, and knowledge platform Sana are all dramatically expanding their teams as funding pours in. This creates this amazing virtuous cycle – more funding means they can hire more talent, which builds better products, which attracts more funding. And it’s not just about the money. When you have former Google DeepMind and Palantir employees (like at Tzafon) choosing to work at 15-person Swedish startups, you know something special is happening. The talent is voting with their feet, and they’re choosing Stockholm over traditional tech hubs.
Where does this go from here?
Basically, Sweden has positioned itself as Europe’s AI powerhouse, and the momentum shows no signs of slowing. The question isn’t whether they can produce more successful AI companies – they’re already doing that. The real question is whether they can produce the next $100 billion company that Project Europe is hunting for. Given the current trajectory and the cultural shift toward ambitious, AI-native founding, it seems increasingly likely. They’ve created an environment where building globally competitive AI companies feels normal rather than exceptional. And that might be their biggest advantage of all.
