Finland’s tech ecosystem is going from strength to strength, led by a cohort of companies launched in the 2010s that have helped put a lot of eyeballs on the country’s startup scene.
The headline makers last year included quantum computing company IQM Quantum Computers, which raised a $320m Series B in September; smart ring maker Oura, which hit an $11bn valuation after raising $900m in October; and satellite startup ICEYE, which raised $200m in December, tapping into the growing buzz around defence tech.
Finland’s capital city Helsinki remains one of the country’s most lucrative cities to start and grow a startup. In 2025, startups there raised €579m in funding, Sifted data shows; up from €296m in 2024.
From its progressive policies on healthcare and childcare to the importance placed on employee wellbeing, Helsinki mayor Daniel Sazonov is working hard to ensure the city’s ecosystem continues to flourish and develops a competitive edge in attracting global talent.
It comes as no surprise that global talent is choosing to relocate to the country with Finland also ranking as the happiest nation for the 8th consecutive year according to the 2025 UN-sponsored World Happiness report.
In an interview with Sifted, Sazonov and Annie Virtanen, senior talent acquisition coordinator at Helsinki-based tech company AlphaSense unpack what makes the city so attractive to overseas startup founders and employees.
‘The convenience the city has for people is phenomenal’
According to Sazonov, Finland’s childcare policies are attracting startup talent from across the globe. “I recently spoke with a CEO who was recruited from abroad. The number one thing he told me is that Helsinki is a place where children can safely walk to school.
“There's a high level of basic everyday services in our education system, and we have increased the number of English language preschool and elementary school spots so that we can really guarantee to people moving here that they will find a place in schools for their kids.”
The society and its infrastructure is there to accommodate and make things easy.
Helsinki offers nationally-mandated childcare support to all employees, which includes 14 months paid parental leave followed by unpaid childcare leave with a flat-rate Home Care Allowance of around €377 per month for one child under three provided. Smaller amounts are given for additional children as well as a means-tested supplement of up to €202 per month.
English-speaking schools in Helsinki include the International School of Helsinki and the European School of Helsinki.
Sazonov also points to Finland’s recent taxation policy changes as another reason why international talent is being lured to the wider country, as well as its capital. The Finnish government announced in November last year it would reduce the special flat tax rate for eligible international employees from 32% to 25% from January 1 2026.
"I don't have to be in a panic mode. There's flexibility in that way"
The city’s infrastructure is another aspect that attracts global founders, adds Virtanen, who points to Helsinki’s public transport.
“If I have to get a tram, I know that it only takes very little time to jump onto the next train,” she says. “The convenience that the city has for people, even commuting, is phenomenal. The society and its infrastructure is there to accommodate and make things easy.”
Helsinki also promotes a generous work-life balance. The city ranked 9th globally, according to a 2025 report by HR platform specialising in distributed workforces, Remote.
“If I need to pick up my child, I can leave freely. I don't have to be in a panic mode. There's flexibility in that way,” Virtanen says.
Connections and mentorship opportunities
The city’s institutions offer deep connections and mentorship opportunities with the University of Helsinki and Aalto University located in neighboring city Espoo, often the breeding ground for Helsinki's startups.
Startups that emerged from the University of Helsinki include healthtech Ankerias and climatetech CarbonLink while Aalto University developed the likes of gaming giant Rovio and digital development company Futurice.
One advantage Helsinki has is that you can reach out to experienced and successful founders who will help you to start and develop.
Founders who’ve exited their own startups are still active within the ecosystem and often provide mentorship to newer founders, Sazonov adds.
“When I speak with young people they always tell me that the one advantage Helsinki has is that you can reach out to experienced and successful founders who will help you to start and develop. That low level of hierarchy is important,” Sazonov says.
Since it started in 2008, Helsinki’s Slush conference has also played a major part in connecting startups with investors. Last year, the flagship event hosted over 6,000 startups founders, as well as over 3,000 investors who collectively managed over €4tn worth of assets, Sazonov adds.
Helsinki’s hiring and talent attraction platforms further provide opportunities for startups to be connected with talent and investment, Virtanen says, who points to Helsinki Partners as an example
The city-owned company works to promote Helsinki’s sustainable growth, advertises job opportunities and connects businesses with talent.
"Helsinki Partners’ goal is to make the city known to international talent."
“When you work with an organisation like Helsinki Partners, they actually advertise different positions on their platform and are essentially the marketing for us. They have a lot of resources in showcasing the city.
“Helsinki Partners does this very well on behalf of companies like us who want to recruit abroad, by just overall marketing the city and what it has to offer.”
Supporting international employees relocating to Helsinki is a major aspect of Virtanen’s role, and Helsinki Partners provides essential support during this process.
“Helsinki Partners’ goal is to make the city known to international talent. They showcase a lot of opportunities that you can find in Finland, and working with them has been a huge effort for us,” she says.
Helsinki Partners’ Hire Helsinki campaign plays a major role in providing further information about the city and bringing awareness to international talent who are considering relocating. By displaying the various Helsinki-based companies that are hiring and showcasing what makes the city so attractive, the campaign is working hard to position Helsinki ahead in the race for international talent.
With my company, if we relocate someone, we relocate their families and their children as well.
According to the campaign, 90% of Helsinki residents report feeling safe in their neighbourhoods and half of working age residents hold a university-level degree. Almost half (40%) of Finnish startups are also based in the city providing ample opportunities for founders and investors alike.
Spouses and the families of those who relocate to Helsinki for work are also supported. The City of Helsinki campaign, for example, provides guides on getting settled in the city and various activities available in the city for children and those who require accessibility.
“With my company, if we relocate someone, we relocate their families and their children as well. We have services that help them to find day cares,” Virtanen adds.
“The city also has services that help spouses, if they’ve moved to Finland with a partner and don't know anyone.”
