The Nordic Edge: Where PropTech Innovation Thrives

If you’re an investor looking for promising construction technology startups or a company wanting to collaborate with a startup, the Nordics is an excellent area to explore. This became evident during the annual Nordic PropTech Awards, which had over 150 finalists.

The winners of the six award categories were announced on March 6, 2025, in Copenhagen. As the Vice President of PropTech Finland’s steering group, I was delighted to see three of the 29 Finnish finalists win the top prize! The entries were judged by a jury of over 40, including investors, company executives, and ecosystem members.

The award categories reflect the versatility of the Nordic startup scene. Each of the following had several noteworthy contestants from Denmark, Finland, Iceland, Norway, and Sweden:

• Mobility & Sustainable Cities
• Energy
• Sustainable & Healthy Buildings
• Real Estate Fintech
• Contech
• Property Management

Finland – An excellent breeding ground for startups

Finland is consistently ranked as the world’s happiest country by the World Happiness Report. Alongside its Nordic sisters, it provides an excellent environment for startups.

The Nordics shine in many statistics about digitalization and innovation. For example, Finland is ranked second in the European Commission’s DESI indicator for citizens with the above basic digital skills. Denmark and Sweden are among the top seven (Norway is not in the EU). Digitalization is supported by an excellent infrastructure, with reasonably priced access to 5G mobile networks and fast fiber connections.

The Nordic countries are welfare states offering free higher education and grants to innovators. Local governments are dedicated to sustainability and are leaders in digitalization. For instance, the Finnish government is creating a national information system for the built environment and implementing BIM-based building permitting.

Finnish cities are also rapidly advancing in terms of digitalization. The country’s capital, Helsinki, is developing a digital twin of the city and providing real-time open data for everyone to use alongside other metropolitan area cities.

A thriving PropTech startup ecosystem

Finland boasts one of the highest startup-per-capita ratios in Europe. While Oura, Aiven, Relex, and HMD Global are well-known Finnish unicorns, numerous smaller startups also thrive.

The Finnish government actively supports innovation through funding programs like those of Business Finland and initiatives such as the Startup Permit for non-EU entrepreneurs.

In 2018, built environment organizations launched KIRAHub, the innovation ecosystem for the Finnish built environment. KIRAHub has its home base on the Maria 01 campus, one of the leading startup communities in Europe with around 200 startups and 30 VCs.

I have collaborated with KIRAHub from the beginning, and AEC Business recently joined the community.

KIRAHub hosts three ecosystems, one is PropTech Finland, which provides support and resources to help startups grow and succeed, including access to funding, mentorship, and networking opportunities. Additionally, PropTech Finland fosters connections between startups, corporations, and investors to accelerate the adoption of innovations.

Potential for growth

Finnish PropTech startups excel especially in digitalization and climate tech–areas with considerable international demand.

Finland has been a global leader in BIM adoption and among the leaders in lean construction, and many startups build on these strengths. Finns also shine among VR and digital twin technologies, with the globally renowned Varjo being one of the forerunners.

Several Finnish construction tech startups, including Builderhead, Caidio, Congrid, Cloudpermit, Sitedrive, GBuilder, and Hyperion Robotics, have the potential to become global success stories.

A challenging business environment

Construction is one of the most challenging business sectors for startups because established business models typically have low profit margins and risk tolerance. That’s precisely why the industry desperately needs innovations and leaders who can redefine value creation, leverage technology to drive efficiency, and build resilient, high-growth businesses that will propel the sector forward.

However, breaking into the industry is not easy. Startups struggle to find the first committed customers who will provide credibility to investors. Therefore, startups must focus on and excel at a core offering that creates undeniable value for early adopters.

Furthermore, ConTech startups must adapt to the construction business’s project-based nature, which presents unique challenges compared to consumer or process-based businesses. Many Finnish ConTech startups have founders or partners with a construction background, making this easier.

Looking forward

The Finnish PropTech winners—Koherent, Smartvatten, and Commu—have showcased remarkable innovation in their fields. The other three winners, Resights (Denmark), Sunday Power (Norway), and Treble Technologies (Iceland), are also paving the way for the future. I wish them all continued success and look forward to seeing their impact grow in the industry.

As we celebrate the winners’ success, the Nordic region is producing many startups with the potential to transform the built environment globally. Whether you’re an investor, industry leader, or entrepreneur, now is the time to take advantage of the opportunities emerging from the Nordics.

The title image with the winning Finnish teams of the Nordic PropTech Awards is courtesy of KIRAHub.