’s latest tech fund holds first close

Breaking ice, which invests in Finnish, Swedish and Estonian tech companies, has held a first close of its second fund at EUR50 million.

The target size of Icebreaker Fund II, which will invest in very early stage tech companies, is EUR75 million. Already before the Corona crisis there was a gap of investors in this segment since most tech investors focus on later investment rounds, according to the firm.

Investors in the new fund include Finland´s state-owned investment company Tesi and KRR III fund-of-funds, Varma Mutual Pension Insurance Company, Elo Mutual Pension Insurance Company, Oy Julius Tallberg, as well as other investment companies. 

Riku Seppälä, one of Icebreaker´s founders, said that focuses on a holistic support that can have a significant impact, especially for idea- or pre-seed stage companies.

"Our portfolio companies and our first fund have surpassed all expectations. Even our own. We have proven that there are a lot of underserved extraordinary founders solving real problems with strong technology in Finland,” he said.

“We have seen that this also applies for Sweden and Estonia. The solutions developed by these teams have gained the interest of the best investors globally. It feels great to continue supporting new companies in this challenging environment,” added Seppälä.
“Such good news is inspiring in the current situation. Early-stage companies are building our future wellbeing, which is essential right now, and we have opportunities built on the expertise to do so,” said Tesi´s investment director Riitta Jääskeläinen.

She continued: “I´m also convinced that the crisis can treat young companies that are still in an active development phase more kindly than others, and Icebreaker has the ability to systemically carry them forwards.”

The first fund launched in 2017 and has invested in 38 companies. Of these 10 have raised EUR1 million-EUR5 million in follow-on rounds from the likes of Creandum, Dawn Capital, Paladin Capital Group and Global Founders Capital.’s portfolio includes MVision AI that uses AI in radiation treatment planning for cancer, freeing up scarce resources in healthcare.