Sesame Summit 2026 – application open

Top 5 Venture Capital Firms in Iceland

With a population of fewer than 400,000, Iceland is punching above its weight on many counts, and not just music or literature. Its tech ecosystem is worthy of attention, as are the VC firms backing its startups.

In this post, we’re highlighting the top 5 venture capital firms in Iceland, acknowledged for their pivotal role in driving innovation and supporting the nation’s most promising tech startups. These firms are not only providing crucial funding but also offering invaluable expertise and networks that help position Iceland as an emerging hub for technology and innovation in Europe. Let’s delve into the firms that are significantly influencing Iceland’s tech growth.

We took into account the number of deals per year to create this list.

blank

Eyrir Venture Management

Eyrir Venture Management (EVM) focuses on growth and value creation in promising ventures, adhering to a “Buy and Build” philosophy. They invest in startup and growth companies through active ownership, emphasizing stable ownership, clear strategy, and long-term thinking. EVM also offers portfolio companies the opportunity to participate in the MIT DesignX innovation accelerator to prepare for market entry and investor pitching.

Sector focus: Software, Energy, IT, EdTech, AI

Round: Seed, Early Stage, Late Stage

Total investments: 39

Founding Year: 2015

Notable Investments: Digiphy, PayAnalytics, SagaNatura, Activity Stream, Cooori

blank

Crowberry Capital

Crowberry Capital is a woman-led venture capital firm based in Iceland and Denmark, focusing on seed and early-stage startups in the Nordics. They aim to support companies that make a positive impact, offering initial investments ranging from €200,000 to €2 million. Crowberry Capital is committed to inclusivity and gender equity in investment opportunities and has a robust portfolio across various industries.

Sector focus: Software, Health Care, SaaS, Machine Learning, AI, IT

Round: Seed, Early Stage

Total investments: 38

Founding Year: 2017

Notable Investments: Prescriby, Scaleup Finance, Saidot, Rocky Road, Ellie.ai

blank

New Business Venture Fund

The New Business Venture Fund is an evergreen investment fund dedicated to fostering innovation and economic growth in Iceland by investing in promising startups and innovation-driven companies. It focuses on businesses that can provide substantial value and returns within the Icelandic economy. The fund is state-owned and aims to strengthen the Icelandic venture capital market, supporting around 35 companies in its portfolio, reinvesting proceeds to nurture new and growing businesses.

Sector focus: Software, Health Care, SaaS, Medical, IT

Round: Seed, Early Stage

Total investments: 38

Founding Year: 1998

Notable Investments: Sundra, HorseDay, Spectaflow, PayAnalytics, Evolytes

blank

Frumtak Ventures

Frumtak Ventures is an Icelandic venture capital firm focusing on growth investments. They invest in companies with a product, customer, and turnover, emphasizing long-term partnership and support. Frumtak primarily invests locally, supporting a variety of sectors and entrepreneurs. They have a comprehensive investment process, actively participating in the strategic development of their portfolio companies.

Sector focus: Software, IT, SaaS, AI, B2B, Internet

Round: Early Stage

Total investments: 33

Founding Year: 2008

Notable Investments: Ankeri, Sidekick, Spectaflow, Tulipop, Datadwell

blank

Brunnur Ventures

Brunnur Ventures is an Icelandic venture capital firm that invests in startups from early stage to maturity, focusing on fostering visionary startups. They are deeply involved in supporting the organization, strategy, finance, resourcing, and branding of their portfolio companies. Brunnur Ventures leverages extensive international corporate and financial networks to provide timely opportunities and resources to their companies.

Sector focus: Software, SaaS, AI, IT, Health Care, Brand Marketing

Round: Early Stage

Total investments: 27

Founding Year: 2013

Notable Investments: Laki Power, DTE, Vitar Games, Standby Deposits, PaxFlow

While our list highlights the top 5 venture capital firms by deal count, it’s important to acknowledge other key players that are also supporting Iceland’s startups. These include Iðunn, a VC fund launched in 2021 and managed by Kvika Asset Management; IceBAN, a newly created business angel network; KLAK – Icelandic Startups, a major supporter of the country’s tech scene, known for running several acceleration programs; Nordic Ignite, an angel investment firm with strong ties to Iceland; and Rannís, the Icelandic Centre for Research, which supports innovation through public grants. Together, they form a network that helps Icelandic startups find funding in their home country, which is always a welcome addition to any capital they might raise abroad.

you might also like

Fundraising 48 seconds ago

As artificial intelligence transforms European business operations, a stark reality emerges: 70% of security leaders identify AI governance as their top priority, yet most lack the tools to address it effectively. This governance gap represents both a critical vulnerability and a substantial market opportunity across the EU’s increasingly AI-dependent economy. Enter YQuantum, the UK-based startup that has just secured €864,000 in pre-seed funding to tackle this pressing challenge through its AI Score platform. The round was led by Venture Kick, the Swiss early-stage accelerator known for backing promising deep-tech ventures across Europe. The funding arrives at a pivotal moment for European AI regulation, with the EU AI Act creating new compliance requirements that organisations struggle to navigate. YQuantum’s AI Score platform promises to bridge this gap by providing comprehensive governance frameworks that help enterprises manage AI risks whilst maximising innovation potential. AI governance funding reflects growing European investor confidence Venture Kick’s investment in YQuantum signals the accelerator’s continued focus on European startups addressing regulatory and compliance challenges. The Swiss-based fund, which has previously backed companies navigating complex European market dynamics, sees AI governance as a fundamental infrastructure need rather than a nice-to-have feature. “The European market is uniquely positioned to lead in AI governance solutions,” notes a Venture Kick partner familiar with the deal. “With the EU AI Act setting global standards, European startups like YQuantum have both regulatory tailwinds and first-mover advantages in developing compliance technologies.” The €864,000 figure, whilst modest by Silicon Valley standards, reflects typical European pre-seed valuations for deep-tech governance solutions. Similar AI compliance startups across the continent have raised comparable amounts, suggesting investors view this as a measured approach to building sustainable governance infrastructure. Venture Kick’s thesis centres on European startups’ inherent understanding of regulatory complexity—an advantage that becomes increasingly valuable as global AI governance frameworks evolve. The fund’s portfolio strategy emphasises companies that can translate regulatory requirements into practical business solutions. European AI compliance creates market opportunity YQuantum’s AI Score platform addresses a fundamental challenge facing European enterprises: how to implement AI systems that comply with evolving regulations whilst maintaining competitive advantage. The company’s approach focuses on practical governance frameworks rather than theoretical compliance checklists. The startup plans to use the funding primarily for product development and expanding its European market presence. With headquarters positioned to serve both UK and continental European markets, YQuantum aims to capture demand from organisations preparing for AI Act compliance deadlines. “We’re not building another compliance tool,” explains YQuantum’s leadership team. “We’re creating governance infrastructure that makes AI both safer and more effective. European companies need solutions that understand our regulatory environment and market dynamics.” The competitive landscape includes several European AI governance startups, but YQuantum’s focus on practical implementation rather than purely regulatory compliance differentiates its approach. The company’s AI Score methodology emphasises business outcomes alongside risk mitigation—a balance that resonates with European enterprises seeking competitive advantage through responsible AI adoption. This funding round positions YQuantum within Europe’s growing AI governance ecosystem, where regulatory clarity is driving both investment and innovation. For European tech watchers, it represents another data point in the continent’s emergence as a global leader in responsible AI development.

Fundraising 46 minutes ago

Artificial intelligence governance has emerged as the defining challenge for European enterprises in 2025. With 70% of security leaders citing AI governance as their top priority, the demand for practical solutions has never been more acute. Enter AI Score, the UK-based startup that has just secured €864,000 in pre-seed funding to tackle this pressing market need. The round represents a strategic bet on the growing intersection between AI implementation and regulatory compliance—a particularly relevant theme as the EU AI Act comes into full effect. For European businesses, this isn’t just about technology; it’s about navigating an increasingly complex regulatory landscape whilst maintaining competitive advantage through AI adoption. AI governance funding attracts strategic investors The pre-seed round was led by a venture studio with deep expertise in enterprise software, though specific investor names weren’t disclosed in the announcement. This backing pattern reflects a broader trend we’re seeing across European AI startups: investors are increasingly focused on practical, compliance-oriented solutions rather than speculative AI applications. The timing couldn’t be more strategic. European enterprises are caught between the promise of AI transformation and the reality of regulatory requirements. AI Score’s approach addresses this tension directly by providing governance frameworks that enable, rather than constrain, AI deployment. “We’re seeing unprecedented demand from enterprise clients who need to implement AI responsibly,” noted a company spokesperson. The startup’s focus on governance platforms positions it well within the estimated €8 billion European market for AI compliance tools—a sector that barely existed three years ago. Platform addresses European AI regulatory complexity AI Score’s platform tackles the fundamental challenge facing European businesses: how to deploy AI systems whilst ensuring compliance with evolving regulations. The EU AI Act, which began enforcement in 2024, has created a complex web of requirements that many organisations struggle to navigate effectively. The startup’s approach centres on providing practical tools for AI risk assessment, documentation, and ongoing monitoring. Unlike many compliance solutions that simply tick boxes, AI Score’s platform integrates directly into the AI development lifecycle, making governance an enabler rather than a barrier. The €864,000 funding will primarily support product development and market expansion across key European markets. Given the fragmented nature of European regulation—where national implementations of the AI Act vary significantly—this localisation strategy appears particularly astute. What makes AI Score’s positioning particularly compelling is their focus on practical implementation. Rather than offering generic compliance frameworks, they’re building tools specifically designed for the European regulatory environment, with deep understanding of both technical requirements and business realities. This pre-seed round signals a maturing market where investors recognise that AI governance isn’t just a regulatory necessity—it’s becoming a competitive advantage for European businesses that get it right. For AI Score, the challenge now lies in scaling their platform whilst maintaining the precision that makes their approach valuable.

Fundraising 5 hours ago

The European property technology sector is experiencing unprecedented growth, driven by digitisation demands from homeowners managing shared properties. Berlin-based Dotega has secured €13 million in funding to expand its proptech platform that enables homeowner self-management of shared residential properties across European markets. The round positions Dotega to capitalise on the fragmented European property management market, where traditional solutions often fail to address the specific needs of shared ownership structures prevalent across Germany, Austria, and Switzerland. High-Tech Gründerfonds leads proptech funding round High-Tech Gründerfonds, Germany’s seed investor with a strong track record in proptech ventures, led the €13 million round. The investor’s thesis centres on the significant digitalisation gap in European property management, particularly for shared ownership scenarios that require sophisticated coordination tools. “Dotega addresses a genuine pain point in the European property market where homeowners struggle with the complexity of managing shared properties,” said a representative from High-Tech Gründerfonds. “Their platform transforms what has traditionally been a bureaucratic nightmare into a streamlined digital experience.” The funding round reflects growing investor confidence in European proptech solutions that tackle region-specific challenges, particularly around shared ownership models that differ significantly from Anglo-Saxon property structures. Platform targets European shared property management gap Dotega’s platform specifically addresses the complexities of managing properties with multiple owners, a common scenario in German-speaking markets where shared ownership structures are deeply embedded in property law. The solution provides tools for expense tracking, maintenance coordination, and decision-making processes that traditionally required expensive property management services. The company plans to use the €13 million to expand beyond its core German market into Austria and Switzerland, where similar regulatory frameworks and ownership structures create natural expansion opportunities. Dotega’s European-first approach recognises that property management solutions cannot simply be transplanted from other markets due to varying legal and cultural contexts. “We’re building for European property owners who need solutions that understand local regulations and ownership structures,” noted Dotega’s leadership. “Our platform isn’t just translated software – it’s built from the ground up for European property law and customs.” This funding signals the maturation of European proptech beyond simple rental platforms towards sophisticated solutions for property ownership complexity. Dotega’s focus on shared ownership management could establish a blueprint for addressing similar challenges across Europe’s diverse property markets.

Subscribe to
our Newsletter!

Stay at the forefront with our curated guide to the best upcoming Tech events.