Stockholm, Sweden · StartupKlarna is a Swedish fintech company that pioneered the “buy now, pay later” (BNPL) model globally. Founded in 2005 by Sebastian Siemiatkowski, Niklas Adalberth, and Victor Jacobsson, Klarna started by offering online shoppers in Sweden a way to purchase goods on invoice (pay after delivery). Over the next decade, the company expanded across Europe and beyond, becoming a dominant online payments provider. As of 2021, Klarna was Europe’s highest-valued private tech company at $45.6 billion, reflecting meteoric growth fueled by consumers’ appetite for installment payments. Klarna’s app and services allow users to split purchases into interest-free installments or pay later, and it partners with over 450,000 retailers worldwide, including global brands like H&M, IKEA, and Nike. The company has over 150 million users across 45 countries and handled $80 billion in transaction volume in 2021. Klarna’s journey, however, has seen dramatic swings: after reaching a $45B valuation in mid-2021, a combination of rising interest rates and tech market downturn led to a downround in 2022, cutting its valuation to $6.7 billion (an 85% drop). The company restructured, laying off 10% of its staff, and refocused on profitability. By 2023, Klarna returned to profit and saw renewed growth, aided by expanding beyond BNPL into a full shopping app with price comparison, loyalty features, and banking services (Klarna obtained a banking license in Europe in 2017). In 2025, Klarna reportedly delayed an IPO amid market volatility but ultimately went public in September 2025, raising $1.37 billion. Despite valuation fluctuations, Klarna remains the global leader in BNPL, with a strong brand among Gen Z and millennial shoppers. Its journey from a small Stockholm startup to a financial giant serving 65 million customers (2025) at one point valued at $75 billion exemplifies the rise (and resiliency) of Europe’s fintech sector.
StartupLate StageFintechPayments
Stockholm, Sweden · StartupNorthvolt was a Swedish battery developer and manufacturer founded in 2016 by former Tesla executives Peter Carlsson and Paolo Cerruti. It aimed to build Europe’s first homegrown lithium-ion gigafactories to supply electric vehicle batteries at scale. Northvolt quickly became Europe’s cleantech darling – it secured over $15 billion in funding from investors like Volkswagen (which took a 20% stake), Goldman Sachs, BMW, and the European Investment Bank. By 2021, Northvolt built its flagship factory in Skellefteå, Sweden (Northvolt Ett) and announced over $55 billion in orders from automakers including Volkswagen, BMW, Volvo, and Polestar. At its peak, Northvolt reached a valuation of $12 billion and was seen as Europe’s best hope against the Asian battery giants CATL, LG Chem, and Panasonic. The company’s progress was significant: it produced its first battery cell in late 2021 and began deliveries in 2022. However, behind the scenes, Northvolt struggled with the immense capital expenditures and operational complexities of scaling battery production. By late 2024, it had accumulated over $5.8 billion in debt and was burning ~$100 million per month, while its factory ran at only 5% capacity due to equipment installation delays and safety issues. In November 2024, Northvolt filed for Chapter 11 bankruptcy protection in the U.S., and on March 12, 2025, it filed for bankruptcy in Sweden, marking the largest industrial bankruptcy in modern Swedish history. The collapse was dramatic – once valued at $12B, Northvolt’s assets were later acquired by US startup Lyten for pennies on the dollar in 2026. Investigations revealed mismanagement: thousands of unopened equipment crates worth €430M were found on-site and a critical €2B BMW contract was lost after Northvolt fell two years behind schedule. Despite its failure, Northvolt’s ambition wasn’t in vain; it spurred the European Commission to launch the European Battery Alliance and rival startups (like France’s Verkor) to push forward. Northvolt’s story is a cautionary tale of euphoria and risk in cleantech – a venture that raised unprecedented funding and $50B in orders to put Europe on the battery map, only to crumble under execution challenges and debt.
StartupGrowthClimateIndustrial
Munich, Germany · StartupElectric vertical takeoff and landing jets designed to unlock zero-emission regional air travel.
StartupGrowthAerospaceMobility