Innovation and entrepreneurship

Innovation can transform ideas and knowledge into new technology, new ways of doing things or even new industries in both established companies or at the seed investment stage. All endeavours to innovate, develop and create new value are important and we take such enterprise seriously and carefully consider whether and how we can provide our support.

We want to create a fertile and stimulating environment for startup companies in Iceland and have organized various projects and events designed to support innovation in this country. We support innovation at companies by providing funding and professional advice to help them achieve their goals.

Leading business accelerators

Arion Bank’s main seed investment programme is Startup Reykjavík. Its objective is to create an environment where entrepreneurs can receive advice and guidance from experienced mentors in order to realize their ideas and thereby create new business opportunities. Participating teams are offered seed funding in the form of equity, training and working facilities where entrepreneurs have the opportunity to meet and exchange ideas. The teams are also given the opportunity to present their business ideas to Icelandic and international investors with a view to discussing how to develop the ideas and raise future funding. Startup Reykjavík is wholly owned by Arion Bank but the business accelerator is run in collaboration with Icelandic Startups. Startup Reykjavik was chosen the best Nordic accelerator program in 2015 by the Nordic Startup Awards.

Startup Reykjavik was chosen the best Nordic accelerator program in 2015 by the Nordic Startup Awards.

Startup Energy Reykjavík (SER) is a business accelerator based on the same template as Startup Reykjavík but it focuses on projects and companies in the energy sector. SER was held for the first time in 2014 with seven companies taking part. A further seven joined up in the spring of 2015. SER is a collaborative project between Arion Bank, Landsvirkjun, GEORG, Innovation Center Iceland, Klak Innovit and Iceland Geothermal.

Accumulated number of investments by Arion Bank in seed companies

The number of applicants to the two business accelerators clearly illustrate the great need for seed funding and active mentoring for seed companies.

The number of applications to Startup Application and Startup Energy Reykjavík

Funding a company as it takes its first steps is usually of critical importance. Companies which have gone through SR and SER have received additional funding following their participation in the business accelerators. At the beginning of 2016 companies had received funding of ISK 1,700 million in the form of equity and grants.

Funding of SR and SER companies by year in ISK millions

Comprehensive approach

Arion Bank in cooperation with Eyrir Invest operates Eyrir Sprotar, an investment fund which focuses on start-ups and growth companies. Eyrir Invest and Arion Bank are the fund’s largest shareholders and in 2015 the Bank invested around ISK 1 billion in the fund.

Arion Bank in cooperation with Eyrir Invest operates Eyrir Sprotar, an investment fund which focuses on start-ups and growth companies. Eyrir Invest and Arion Bank are the fund’s largest shareholders and in 2015 the Bank invested around ISK 1 billion in the fund.

Arion Bank is one of the chief sponsors of the NKG innovation competition for 10-12 year olds and at the end of 2015 the Bank became one of the main backers of Junior Achievement in Iceland. The role of these organizations is to prepare young people for the future and to improve their skills for the job market and by promoting education in innovation, entrepreneurship and business at college level.