innish Industry Investment is a long-term and reliable investment partner that is very well-versed in the Finnish private equity and venture capital market, legislation and corporate culture.
“International investors want to partner with a local player who has first-hand knowledge of what’s going on in the markets and knows, e.g., the local recruiting process. We also offer our partners insight into which companies or sectors are within the scope of their investment strategy and the most promising investment targets in Finland,” notes Jussi Hattula, Team Leader of Finnish Industry Investment’s Venture Capital team.
NETWORKS AND AN INTERNATIONAL PERSPECTIVE
International investors offer the companies valuable experience, know-how and networks in addition to funding.
“They promote Finnish companies' growth and internationalisation by encouraging entrepreneurs to expand their operations and by bringing an international perspective to business,” Hattula says.
International investors participated in twelve direct investment rounds, i.e. in at least every other one carried out by Finnish Industry Investment in 2014:
“International investors invested a total of 82 million euros in Finnish growth companies; that’s three times more than Finnish Industry Investment invested in the same companies.”
International investors promote the growth and internationalisation of Finnish companies by offering their expertise and by encouraging entrepreneurs to expand their operations.”
BENEFITS FROM BIGGER FINANCING ROUNDS
Finnish growth companies traditionally have been slightly underfunded. The venture capital financing rounds realised in Finland in recent years have been relatively small. In fact, Finnish Industry Investment’s goal is that there will be more financing rounds exceeding 5 million euros to drive faster growth and internationalisation of companies.
“We are interested in companies seeking later stage venture capital financing, companies that already demonstrate turnover and have taken the initial steps to internationalisation. Also in this regard experienced international investors are important.”
What makes Finland an interesting investment target from the perspective of international venture capital investment activity?
“The Finnish technology sector and competence base are attractive. Generally speaking, for the size of the economies, the Nordic countries have seen an exceptionally high number of exits in the billion dollar-plus range.”
Entrepreneurship too is on the rise in Finland – as visible in the active start-up boom.
“We have a number of companies that have started to grow fast. This can be partly attributable to the embracement of the so-called fail-fast culture, i.e. trying to find signs as quickly as possible that the business is on a fast track to growth,” Hattula says.