The second edition of Financial Times’ ranking reveals a complete reshuffle of Europe’s startup landscape. Half of the hubs that were featured last year have lost their ranking, and the British-majority frontrunners have largely been replaced by French and German players – as well as one Swedish contender. SSE Business Lab has climbed an impressive 18 spots from last year to secure number eight out of 150, making it the sole Nordic incubator in Europe’s top tier.

“This ranking is about much more than prestige – it shows where the unicorns of tomorrow are being born. And right now, they’re incubating at SSE,” says Isabel Keulen, the newly appointed CEO of the Stockholm School of Economics’ incubator and venture capital fund.

The 2025 ranking draws on an expanded dataset that includes feedback from alumni companies, expert opinions, and analyses of which incubators have produced the highest-valued firms. Sebastian Knutsson, co-founder of King and a long-time member of SSE Business Lab’s Board of Admissions, believes that the Stockholm School of Economics’ early investments in technology and AI have been instrumental in achieving this ranking.

“Companies from SSE have a unique ability to convert technology into real business value. Within AI, they especially excel at leveraging the technology to make a tangible impact. This year’s ranking more accurately reflects SSE’s pioneering role,” Sebastian Knutsson says.

EU is stepping up its AI efforts – an opportunity for Sweden

At a recent summit in Paris, the European Commission announced a historic €200 billion investment in AI designed to boost Europe’s innovation capacity. The fact that EU-based incubators are now outpacing their British counterparts shows that the region has the potential to catch up in AI development. However, Lars Strannegård, President of the Stockholm School of Economics, argues that Swedish startups need more strategic support at home to fully capitalize on this initiative.

“It’s imperative for Sweden’s competitiveness that our universities serve as engines of entrepreneurship. In the age of AI, we simply cannot afford to wait – our academic institutions must take responsibility for developing and implementing new knowledge and technology in society,” says Lars Strannegård.

Sweden risks losing talent

Sweden is cementing its reputation as a leading hub of innovation, with seven Swedish  incubators making it onto the FT ranking. Among them, SSE Business Lab stands out at number eight, followed by KTH Innovation at number 21. Yet, despite this strong foundation, global competition is fierce – and the pace of AI development is relentless.

“Sweden cannot take its position for granted if we want to retain our most promising entrepreneurs,” warns Sara Öhrvall, Chair of the Stockholm School of Economics’ venture capital fund. “Sweden and Europe risk becoming mere exporters of talent to the US. If we don’t accelerate our development and invest in AI at home, we’ll lose the next generation of unicorns.”

SSE Business Lab’s rise into the top ten confirms that Sweden can compete with Europe’s leading startup incubators. At the same time, the EU’s new AI initiative signals a shift in the competitive landscape, and the ecosystems that adapt most swiftly will lead the way. Europe has a unique opportunity to strengthen its position in the global innovation landscape, but securing Sweden’s role in the global AI economy will require strategic measures to ensure that the next generation of technology companies is built domestically – rather than elsewhere.