How Norwegian startups raise billions from the US

'US investors are known for offering larger funding rounds than their European counterparts, and they also often provide higher valuations,' says Jannik Grodt Schmidt, our Head of Healthcare in the US.

'This enables companies to scale faster and is particularly valuable for capital-intensive sectors such as biotechnology and health technology,' Schmidt points out.

From our New York office, he and his colleague Zacharias Holm help Norwegian healthcare companies seeking to attract investors in the US.

The US is the world's largest and most profitable market for healthcare products and health technology. It is a perfect match for Norway's healthcare industry, with its world-class research and young, ambitious companies.

Read the article: The health industry is also one of Norway's new official export initiatives.

– In addition, US investors often have strong networks within the US healthcare ecosystem. This gives European start-ups access to valuable strategic commercial partnerships, clinical trials and a larger patient population.

Our advisers' extensive networks and in-depth knowledge of the US market are clearly delivering results. So far, they have helped channel NOK 3.1 billion from private US investors into innovative Norwegian healthcare companies.

Success takes a great deal, and Norwegian business culture can fall short when engaging with American investors.

'There are significant differences when it comes to pitching, communication styles and expectations. Norwegian companies often have excellent science, but struggle to ‘sell’ it effectively to investors,' Schmidt explains.

In his experience, Norwegians are often too modest and pitch very conservatively, which puts them at a significant disadvantage in the US.

Helping companies use bigger words is therefore an important part of the job.

– We help companies prepare presentations, sharpen their narrative and take part in conversations with investors.

Another barrier for Norwegian companies seeking to raise capital in the US is a lack of networks.

‘Many companies have small teams focused on scientific progress and day-to-day operations. This leaves them with too little time and too few resources to raise capital. That is where our extensive networks of global investors and funding communities can help.’

You will also gain access to exclusive events hosted by us and support from Team Norway at key US conferences (see the fact box at the bottom of the page).

Many US investors also prefer companies with a presence in the US. As a result, European companies often need to set up a US office, build a network in the US and engage local resources.

'We make sure the companies are prepared for this, and we can connect those looking to establish a US entity with trusted service providers,' Schmidt explains.

We also work with a range of other organisations to help Norwegian healthcare companies succeed in the US. We recently launched the Healthcare Innovation Accelerator programme in partnership with DNB, Destination Medical Center and Mayo Clinic Innovation Exchange.

The new programme aims to help healthcare companies scale, building on our experience from other scale-up programmes, such as TEA, TINC and EMNY.

'The programme gives Norwegian healthcare companies a valuable opportunity to build key relationships, gain valuable experience and fine-tune their market strategy,' says our Zacharias Holm.

The programme is part of a long-term initiative to expand collaboration between Norway and Mayo Clinic, one of the world's leading and most prestigious healthcare institutions. Mayo Clinic has extensive experience in researching, developing and implementing new medical solutions.

DoMore Diagnostics is one of the healthcare companies we work with in New York. The company uses artificial intelligence to tailor colorectal cancer treatment to each individual patient.

‘Our technology enables us to predict patient outcomes based on the cancerous tumour and identify which patients will benefit from chemotherapy after surgery. Our goal is to ensure personalised cancer treatment for every cancer patient,’ says CEO and co-founder Torbjørn Furuseth.

This is where international capital is crucial. With our support, they have previously secured €2.5 million in grants from the EU's EIC Accelerator funding scheme, as well as up to €7.5 million in future investment from the same scheme.

US investors are next. In the US, the company has taken part in the Nordic American Healthcare Conference NYC and the Nordic AMPlify accelerator programme, which we co-organise.

Hemispherian is also developing a pioneering cancer treatment. It uses a chemical compound that activates the DNA damage response in cancer cells without harming healthy tissue.

During the time we have supported them, they have raised NOK 140 million in capital – including NOK 105 million through the European Innovation Council's EIC Accelerator. They now hope to attract US investment to develop the company further.

‘Innovation Norway provides us with invaluable support by facilitating contact with investors and connecting us with key figures in the US pharmaceutical industry,’ says founder and CEO Zeno Albisser.

Erik Mjåland, co-founder of Node Pharma, also praises our support in helping the company enter the US market. He points out that many US investors are familiar with Norway's expertise in radiopharmaceuticals – the use of radioactive radiation to treat cancer – thanks to Algeta's billion-kroner success. This gives the company an advantage.

'We see significant opportunities for our radiopharmaceutical drug in this market and are planning clinical trials in both the US and Europe,' says Mjåland.

The company is developing new treatments for cancer patients with limited treatment options.

– Innovation Norway has opened important doors for us in the US market. Through your network, we have gained access to professional investors, pharmaceutical companies and hospitals with unique expertise in building companies and developing medicines. We have also gained access to a much larger pool of capital than is available in Norway, Mjåland points out.