As Europe frets about its competitiveness and seeks to reinvigorate business dynamism, it should look to learn lessons from its success stories. Malmö, Sweden, might seem an unlikely place to look for inspiration, but its transformation in recent years into a thriving tech community shows why place-based policies must be central to Europe’s new industrial strategy.
The remaking of Malmö
By the end of the 20th century, the city of Malmö was struggling with challenges of deindustrialisation that had left the city with high unemployment. As a solution to this, Malmö embraced a new strategy centred on innovation and entrepreneurship, positioning itself as a hub for start-ups and creative industries.
Malmö’s strategy sought to leverage the unique advantages of Malmö to create an ideal environment for startups to thrive. As Sweden’s most diverse city, Malmö thrives on the convergence of ideas, cultures, and industries. Its proximity to Copenhagen connects it to a broader Nordic innovation ecosystem, while its affordability and high quality of life make it attractive to talent from around the world. The city’s legacy as a hub for shipping and manufacturing has also evolved into strengths in logistics, design, and sustainability.
A key part of this renewal was the establishment of Minc, an initiative by the City of Malmö designed to support startups, foster innovation, and attract talent. Minc has since become a cornerstone of the city’s ecosystem, playing a vital role in Malmö’s transition into a modern, knowledge-driven economy. As Malmö continues to evolve, its success offers valuable lessons for other cities aspiring to foster dynamic startup communities. Among Europe’s medium-sized cities, Malmö ranks in the top five for the most valuable tech ecosystems.
Minc as a catalyst for startups
Minc’s success stems from its focus on 3 core pillars: access to early-stage funding, knowledge sharing, and collaboration.
Capital is the lifeblood of startups. Recognising this, Minc launched its first investment fund Fast Track Capital I (FTCI) in 2017 and have launched 3 new funds since (FTC II, III and Skåne Ventures). With a combination of public and private funds totalling 250 million SEK, Minc bridges the funding gap for early-stage startups. The investment structure is built on a 50/50 capital model, combining equal contributions from private angel investors and Saminvest, Sweden’s state-owned venture capital firm. This provides startups with the financial support they need to accelerate their growth.
Meanwhile, Minc’s business coaching programs and workshops equip founders with the tools to navigate the complexities of building a startup. Its accelerator program, Fast Track Malmö, launched in 2016, has provided entrepreneurs with the knowledge and resources to secure funding and scale their businesses. Startups that have participated in the accelerator have collectively raised substantial capital, showcasing the program’s impact.
Finally, Minc embodies Malmö’s spirit of collaboration, bringing together more than 40 nationalities under one roof. By fostering diversity and inclusion, Minc ensures that the benefits of innovation extend to all. With 40% female-founded companies in their portfolio they certainly walk the talk. This ethos strengthens the city’s attractiveness as a hub for talent and entrepreneurship.
Start-ups at the centre
In Malmö, startups are more than economic engines—they are catalysts for societal change. By creating scalable solutions, startups drive job creation, retain and attract talent, and contribute to Malmö’s international reputation. For instance, the gaming industry has flourished in Malmö due to targeted investments in infrastructure and a welcoming platform for creativity.
Malmö’s experience with Minc provides a roadmap for other cities looking to create vibrant startup ecosystems:
- Leverage Local Strengths: Build on unique regional attributes to establish a clear identity.
- Promote Collaboration: Facilitate partnerships between entrepreneurs, investors, universities, and local government.
- Provide Access to Capital: Develop funding programs that reduce barriers for early-stage startups.
- Invest in Infrastructure: Create physical and digital platforms where entrepreneurs can collaborate and grow.
Foster Diversity: Ensure that all voices are included in the startup community, fueling creativity and innovation.
Looking ahead, despite Minc’s achievements, accessing early-stage funding remains a challenge for startups. Early-stage funding is critical for startups to test and validate their business idea, continue development of product or service, enhance marketing efforts or recruit a new team member. But following recent global economic disruptions the State of European Tech 2024 report highlights a decline in total capital invested across Europe since 2021. Yet 20% of startups report that it has become easier to secure capital, underscoring the role of local ecosystems in providing targeted support. Tackling this requires a collective effort at the European level.
The path forward: Innovation and accessible funding as a catalyst
Malmö’s success has shown the power of forward-thinking place-based policies. A clear vision, supported by a strong collaboration between the public and private sectors ensured that resources are aligned to the needs of entrepreneurs. Malmö’s focus on inclusivity ensures that innovation is accessible to underrepresented groups, further enhancing the city’s resilience and adaptability.
Malmö’s success illustrates that innovation is about more than groundbreaking ideas—it’s about building scalable solutions that drive economic and social progress. By empowering entrepreneurs with the knowledge, capital, and support they need, Malmö is creating a brighter future for its residents and setting an example for cities worldwide.
As Minc continues to lead the charge, Malmö’s startup community is well positioned to the transform challenges into opportunities and ideas into impact. With its commitment to fostering entrepreneurship, Malmö is not just building startups—it’s building a better world.
OECD Work
Start-up and Scale-up Policy | OECD
Measuring job creation by start-ups and young firms | OECD
Business Development Services for Start-ups and SMEs | OECD
OECD Contacts
Lucia CUSMANO – Acting Head of Division – SME and Entrepreneurship Division (SMEE) – Centre for Entrepreneurship, SMEs, Regions and Cities – Lucia.CUSMANO@oecd.org
Raffaele TRAPASSO Head of Unit – Entrepreneurial Education and Skills – SME and Entrepreneurship Division (SMEE) – Raffaele.TRAPASSO@oecd.org
Jonathan POTTER – Head of Unit – Entrepreneurship Policy and Analysis – SME and Entrepreneurship Division (SMEE) – Jonathan.POTTER@oecd.org
Daniel holds a degree from The Swedish Military School as technical officer with a focus on information systems. He has over 20 years of experience in leadership, business architecture, innovation, business development, and digital transformation across multiple industries. He was a key figure in establishing Sweden's first digital healthcare provider, Min Doktor. Since its inception in 2014, he was responsible for innovation and business development, playing a pivotal role in making Min Doktor a leader in large-scale digitalization of Swedish primary care. Today, Daniel serves as the CEO of Minc, Malmö's startup house and Incubator, where he leads efforts to develop and support the next generation of Tech Startups across various sectors. With a strong commitment to entrepreneurship, Daniel leverages his expertise in innovation, digitalization, leadership, and organizational development to build high-performing teams and contribute to sustainable growth.