Last Friday, Microsoft launched a new program called Bizspark that offers startups of different ages and stages tools to take care of their software and hosting requirements. Technopolis Ventures, Veraventure, The Finnish Software Entrepeneurs Association and Venture Cup has partnered with Microsoft in Finland to accept participants into the program.

Startups must meet the following requirements to be accepted into the program:

• Be actively engaged in development of a software-based product or service that will form a core of its current or intended business
• Be privately held
• Be in business for less than 3 years and
• Have less than 1 million USD annual turnover.

Despite being a Mac fanatic, I have to give it to Microsoft for pulling this off. They are sponsoring a wide range of products that suit many companies working in the internet space especially. Also, the packages being offered are tailored for companies in different stages of their growth and thus are also bundled together with their capability to pay for the software.

For more information, visit Microsoft Bizspark. You can also find your partners in Sweden, Norway, Denmark and the Baltics through this link.

Estonian Fortumo and Finnish Kuneri have won a free pass to Nordic Mobile Media Conference in Tallinn, Estonia on December 3-4th. Both companies will also get an exhibition stand in the event.

Fortumo (coverage) enables quick and free creation and monetization of web-based mobile services maintenance, while Kuneri (coverage) provides a variety of Flash Lite tools and services, latest release being Pikkoo.

Congrats to the winners!

[Registeration to the conference]

Fruugo is preparing to come out tomorrow afternoon in a keynote (titled maybe a bit exaggeratedly “Meet the most ambitious start up on the planet”) at SIME in Stockholm. Fruugo will explain where the company is coming from, what markets and product categories they will go after, and what are they’re next steps.

Prior to the keynote, Fruugo’s VP Marketing Janne Waltonen today disclosed a few things to ArcticStartup regarding Fruugo’s positioning and go to market strategy.

First of all, the company will focus on physical products in the beginning, concentrating on the favorite products of online shopping like books, records, games, clothing, electronics, etc. Fruugo is running a closed Beta at the moment with a few tens of retailers and consumers, and they are starting an invitation beta in January targeted to consumers.

The first three online shopping segments they’re targeting will be a) early adapters of social media and online shopping, b) pregnant women and mothers with babies, and c) outdoor sports enthusiasts (say diving, hunting, fishing etc.). The first is pretty self evident, the second two have been selected because of the unique characteristics in their online shopping behavior, based on extensive amount of research and focus groups. Waltonen explained pregnant women and recent mothers value, and are very active with, social relationships, product recommendations, comparisons, and have a huge need for detailed product information on the web. In the outdoor segment there are likewise very active communities formed around certain sports, with the habit of using web extensively for information and purchases.

Fruugo will start from the Finnish and Swedish markets, then expanding to key markets elsewhere in the Central and Western Europe. Waltonen commented Fruugo doesn’t t have direct competitors as such, and most of the players concerned with Fruugo entering their space could actually rather be quite interesting partners (like Kelkoo and other product comparison sites for example).

Regarding the recent rumors, Janne Waltonen set straight they’ve indeed done some adjusting on the cost structure, somewhat due to the economical environment, but much due they being done with heaviest R&D and are moving more into more operational structure now, which has eliminated a few roles. Anyway, Waltonen told Fruugo’s own workforce has been reduced less than 10%, in addition to terminating some consulting and outsourcing contracts. Some of the rumors out there are quite off the scale from their point of view (like their rumored private jet), but they haven’t wanted to spend time commenting all of that before their phase of more active PR starting from tomorrow.

Apparently Fruugo’s got something working already, as Waltonen told he’s actually already bought and received all his Christmas presents using the company’s service. We (and Santa) look forward to hearing more tomorrow.

I’ve lately had many discussion on how the break from the Nordics & Baltics and make one’s service or product really global. Just recently I had this discussion here at Nordkapp where I work, so it does not only concern software products but equally all the service provides with international ambitions.

For a technology startup this question focuses many times on the issue of whether they should pack their bags and move to the Silicon Valley or whether they should build a strong user base first at home. Another viable option might be to reach out to London, but then again, many think that will only slows you down in your quest to global market share and you should head straight to the eye of the storm where the battle for the critical masses are fought.

This is more of a ongoing conversation than something that can be answered with a clear Yes or No, but here are some thoughts to start with:

1. If you know which market you want to get to think about getting a board member, an advisory board member or an investor from the market. Instead of trying to bombard firms operating in the given market with a requests for shallow partnerships or just opening an office there, by aligning someone’s interest with yours ie. giving them a stake in your success you can instantly tab into their network of contacts. These people already know who are the people you don’t want to work with, because even though someone might have a nice resume they also might have a bad reputation among the local players, which would make your market entry a disaster. And vice versa: They know exactly who are the perfect partners for you and you don’t end up taking the one you happen to know from a Trade Show two years ago. To get these people on board you need to focus, do your research on who is the right fit with you, work hard, dedicate time to it and make the offer really worth their time.
2. For any consumer technology startup, don’t just visit US and get a sales guy in there. Move there permanently for a few years if that’s the market you aim for. And if you’re building the next consumer web service, that is most likely the market you should aim for to get the traction over competitors. That said, you should still cultivate your network back at home so you can also benefit from that and link other firms from back home to your new contacts. This goes for the time of high growth when you’re just building your product, but especially for the time after you have made your millions. You can have a huge advantage by having a network in both ends whether you start another startup or decide turn into an investor.
3. When choosing an investor, you want to be careful for not choosing some small local fund, because they might actually limit your company to reach its full potential since they’ll hold you back in fearing that they might get squeezed out in the later investing rounds. Also, since cycle times for an exit are growing (what was an exit in 5 years, looks more like an exit in 8 years now) you need a big enough fund that can follow up without running out of money.
4. Same goes for advisory board members: Some people active in the Finnish startup scene have voiced their concern about the quality of people present in many of the more informal investor get-togethers. You don’t want some former technology company middle manager from the early 90’s influencing your vision, because they advice you to take the path they are familiar with which more often than not is something different from going global from day one.
5. Even though Silicon Valley is the epicenter of much of the activity in the consumer technology startup world don’t only look at the US. Do see how fertile ground India, China or Asia might be for your product. When they all start to look good, remember to choose your battles. As a startup you have very limited resources and if you’d like to push through you need to focus your efforts.

What else should a startup consider when trying to go international?

Here’s Jaiku founders’ advice on how to choose between London and the Silicon Valley when building a successful startup (original post here)

Photo by oskay (CC:BY).

Slush Helsinki is taking place in two weeks time on 24th November at Korjaamo, Helsinki. The event is a collaborative effort from Helsinki startup scene aiming bring together Helsinki’s startups, past and current, and showcasing some of the more interesting startups in the region.

Slush will stop selling tickets on the 19th November, which is next week’s Wednesday. If you’re planning on attending make sure to buy your ticket while you still can. You buy there here.

Slush party will take place at Helmi on the evening of 24th. This will be naturally included in the price of the ticket. I just heard a rumor that the mysterious Finnish startup Fruugo might be giving away invites to their Beta at the Slush party. (More about Fruugo here)

We have teamed up with TechCrunch UK and Slush to hold a Brunch at Ekberg Cafe the following day (25th November). You need a seprate ticket for this, which can be purchased here. The space is limited so make sure you get your ticket while they last! (Story on TCUK here)

Slush has also combined forces with Access Forum, which is a two-day networking and match-making event with focus on cutting edge mobile technology. Access Forum 2008 will host an Israeli delegation which will include some of the largest venture capital firms from Israel.

Access Forum will also bring FIG Marketplace to Slush. It’s a matchmaking event for mobile high-tech firms and takes place at Slush on Monday 24.11.2008 from 13:30 to 16:00. The event provides you excellent possibility to find new business partners, customers and technologies among the participating Finnish and Israeli companies. You can fill in your own Company Profile and search the on-line Catalogue for partners and company profiles. It is possible to request bilateral and pre-scheduled meetings with event participants. The meetings last max. 30 minutes each. The FIG Marketplace @ Slush is free of charge for the companies who participate at Slush. The event is organized by Technopolis Ventures and Enterprise Europe Network Finland. For more information and to register, visit here.