technopolis ventures

State Of The Finnish Venture Capital

The Nordics and Baltics are still very much a wild west when it comes to venture capital and building startups into real growth companies and all the way to the IPO dreamland.

All the countries have their peculiar histories when it comes to VC landscape and so does Finland. Will Cardwell, the CEO of Techopolis Ventures, wrote a very enlightening post called “Reeling in the last decade in Finnish VC” (here) on how the scene has developed in Finland what factors have influenced it.

Will starts out by saying that while there certainly are a lot of colorful stories, the thing that bothers him is the number of “success stories that got away. When assessing history track record he goes on to say that he emphasizes exits, since they are the only relevant measure of success for both growth entrepreneurial businesses or venture capital investing, and this area (exits) is precisely where Finnish companies have had the biggest challenges Cardwell’s view. By looking at the figures one can’t but agree.

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ArcticEvening Helsinki, Successful Night With Successful Companies

ArcticEvening Helsinki, held October 27th!
Thank you everyone who made it to ArcticEvening Helsinki last night. The evening was a great success and a special thank you for that goes out to the panelists David O’Weger who covered for Ari-Pekka Salovaara from Severa, Michael Falck from Relex as well as Mikko Kaarela from Technopolis Ventures as well as our sponsors for making the event possible in the first place.
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ArcticEvening Helsinki Coming Up October 27th!

ArcticEvening Helsinki, held October 27th!

We’ll be continuing our tour of the ArcticEvenings around the Nordics and Baltics with our next event being held in Helsinki, Finland. Our event will be themed software growth businesses. We’ll be hosting a fabolous panel for you on the 27th of October. It will have some young, but extremely successful local startups from the software sector.
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Finnish Companies Raised Close To €51 Million In The First Half Of 2009

A new report by Technopolis Online, a for-pay information tool for all high-tech financing activities in Finland, states that Finnish high-tech growth companies raised almost €51 million in the first half of 2009, which is a 17% decrease from the first half of 2008. In addition, Q2 2009 decreased more than 50% compared to the prior year.

Let’s break down some of these figures. To put things in perspective the €51 million was raised by total of 29 Finnish high-tech companies from both, venture capital and angel investors. This was 17% below the amount raised by 34 companies in the first half of 2008, and 74% below the amount raised by 26 companies in the second half of 2008. For anyone who has followed the recent trends, not surprisingly the second quarter of 2009 was the lowest quarter recorded since 2007.

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Companies Look To Outsource Innovation And Ideas

InnovationThis is a relatively interesting move and possibly a trend may follow if this picks up more momentum. A few days ago Hammerkit took to the web designers to try out their service and challenge the traditional web principles. In other words, they are trying to get a dialogue going between designers and that sort to leverage their knowledge and also market the possibilities Hammerkit has to offer them.

Hammerkit is a Finnish company based in the Techonopolis Ventures incubation pipeline. They are developing a framework for web development to leverage modules for faster web application production. With the dialogue with designers – they will be holding webcast sessions to futher untie possible knots in the co-operation and perception people may have towards their service.

This is a very wise move in my opinion for Hammerkit. I’d argue that they should be positioned more in the crowdsourcing space to tap into the knowledge of the web designers to better suit their product to their use. However, Hammerkit is not the only working in this front. A few weeks ago Nokia announced together with Technopolis a Nokia Technopolis Innovation Mill project to open up their patent registry to startups.
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Microsoft Launches Tools For Startups – BizSpark

BizsparkLast 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.

Successful And Buzzing ArcticEvening

We had a fantastic ArcticEvening last night at Dubrovnik in Helsinki and I want to thank everybody who were able to arrive and enjoy the evening with us. Special thanks to Peter Robinett who came all the way from Amsterdam to share his insights on the local startup scene in Amsterdam and in Silicon Valley. Also thanks for our sponsor Technopolis Ventures who made the evening possible.

Based on what I saw last night in Helsinki and heard about the other corners of Nordic and Baltic countries the Arctic scene is very much happening. It is great to see that regardless of the tougher times for the global economy and Jason Calacanis’ darker prediction on things to come, the enthusiasm and spirit is high in the Arctic latitudes.

As Jason says, “Great entrepreneurs build value and market-share in down markets. They go to work seven days a week and breakout when other folks check out.” Last night showed that this is certainly the case in Helsinki. We are very proud of the entrepreneurs, startups and all the high spirited people in Finland -You made our night. Thank you!

Photo by Teppo Kotirinta

MindTrek prizes for start-ups a positive surprise

We speculated earlier on that this year’s MindTrek’s Startup Launchpad prizes would be pretty good, and nice they are.


The guys at MindTrek have shown that when it comes to getting start-ups on board, Tampere knows what its doing. Here’s what they have on offer quote on quote:

The winner elected by the jury will be nominated as the MindTrek Startup of the Year 2008, and given the right to pick up the prize first from the basket. The three prizes are:

  • Two tickets for an international conference (max á 1300 €), like Le Web 3 Le Web08 in Paris (December 12th – 13th) December 9th – 10th*
  • Supercoaching training by Sharon Ballard
  • Technopolis Ventures incubation program (12 months contract, worth 3 000 €) and an opportunity to participate in the Money Talks Forum

In addition, the winner will get two tickets for the MindTrek 2009 conference and one hour face-time with one jury member to discuss about the concept, business model, financing opportunities, markets, etc.

The company nominated as second will select prize after the winner, and the bronze-medallist will get the remaining prize.

All companies selected to present their pitches in the conference will be given an opportunity to participate in a half-day pitch training session before the conference.
On top of that we at ArcticStartup want to offer the winning startup the possibility to put their logo (125×125px) on ArcticStartup front page for one month. Additionally we will also do an interview with the winner right there at MindTrek.


If the prizes are noteworthy, so it the jury. The jury line up includes Marc Davis from Yahoo!, Sharon C. Ballard, the founding President/CEO of Enable Ventures Inc., Tapio Siik from Nokia Growth Partners, Pekka Pärnänen theHead of Finpro at Silicon Valley and Henri Rantalainen the CEO and Business Development Advisor at Technopolis Ventures Professia.


But as they say there’s no such thing as a free lunch and even start-ups have to invest real money sometimes as much as it hurts. There is no real registration fee for the Launchpad competition, but if a start-up is selected it will have to register for the conference to get to pitch and be eligible for the prizes. The registration fee is 75 euro (+VAT) for the Thursday when the actual pitching competiton will take place, and if you want join the whole two days you have to pay 110 euro (+VAT) for a two day ticket, ie Wednesday and Thursday.

To ease the pain a bit, we are co-organizing with Culminatum, Sombiz, Floobs and MindTrek a free bus ride for all the startups to Tampere and back. Regardless of whether you’re pitching or not, you’re most welcome to join the ride. write me at ville [at] arcticstartup [dot] com if you wanna come and I’ll reserve a seat for your team.

You can read more about the competition and fill in the registration for here. Good luck!

*Edit: A correction to The MindTrek website: The first prize that includes two tickets for an international conference (max á 1300 €), should read “like Le Web08 in Paris (December 9th – 10th)”, not ‘LeWeb3 that was held in Paris last year on December 12th and 13th.

IVA conference: the aftermath

As you probably know from our earlier posts the IVA conference was held last week in Tel Aviv, Israel. Now it’s time for a recap. I had an opportunity to interview Jussi Harvela, Pekka Roine and Kristian Järnefelt from Concilio Networks who all participated in the event. They all agreed that the whole trip was a success.

The Finnish delegation of fifteen people attended the conference (with total of 1700 attendees) itself and the companies also pitched for a selected VC audience just after the conference. Furthermore, all eight companies had private meetings with potential investors and partners. The advice from the experts (check the video) was clearly followed by the companies as the quality of pitches was described as “very good” or “excellent”. The Finnish companies were pretty unknown for Israeli VCs who were anyhow impressed by the absence of “me-too” startups among the pitchers.

Mr. Järnefelt also provided some personal insights on Israeli business as well. He said that Israel resembles Silicon Valley a great deal and many of leading US VCs are also present in Israel. There are quite a lot early stage capital available and a bubbling startup scene as well. One notable thing is the amount of serial entrepreneurs who yet are rare (at least in software business) in Finland. According to Mr. Järnefelt Israeli startups have a strong level of ambition in general and the incubators (that acccept only 3-5% of applicants) encourage such behavior. However, one thing the Israeli ICT segment yet lacks is “a Nokia”, so that gives the Finns something to chat about.

One the trip’s goals was to deepen the co-operation between Finland and Israel. Thus, representatives from Finnish Ministry of Employment and the Economy, TEKES, Finnvera and Technopolis Ventures got a first-hand look on, for example, the Israeli VC industry and the incubator system. After the Finnish delegation returns we hope the co-operation gradually deepens and gains momentum. The signs seem promising in any case.

There were discussions that an Israeli delegation consisting of VCs and government officials would visit Finland sometime during the Autumn. It would be great if Estonian and Russian startups could attend such an event along with Finnish companies. We will keep you posted if and when we hear more of this kind of plans.

In conclusion, an excellent event and we hope to see a more deeper interaction between Israel and Finland in the future.

Learning from Israel

I interviewed Mr Pekka Roine last week about the initiative, that we’ve written here, to take Finnish startups to Israel to learn their secrets of success. Mr Roine has been sitting in numerous company boards both in Finland and in Israel. He also has an understanding of the differences between these two countries many would crave for.

I personally wondered why the initiative was put forward by individuals such as Mr Roine, Mr Juha Ruohonen and Greater Helsinki Promotion and not the members of parliament. After discussing for a good half an hour I understood why.

To understand the backgrounds of this exchange, one must understand Israel and what they have gone through in the last 15 years or so. Israel is one of the leading incubators and accelerators of startups in the high tech industry. During the last 15 years, Israel has “sent” more than 100 companies to Nasdaq. They also have a very systematic way of doing this and it does not rely on assumptions such as the “connections between the jews in Israel and America” or any nonsense of that sort.

However, the story goes further back. In 2004, an event was organised in Finland, followig the signing of an Agreement of Understanding between the two countries on the government level. The agreement creates the framework to work together to increase the chances of cross border co-operation and eventually, success. Needless to say such an agreement did not work very well.

In May 2006, Erkki Virtanen, the permanent secretary of TEM, together with a delegation of business and government executives visited Israel to further deepen the understanding. After the visit the understanding and keys to success began to unfold.

February this year, the chairman of the Israeli Venture Association was over for a visit in Finland and invited Finnish companies over. The visit is timed in sync with the IVA’s annual conference which gathers a lot of people from many areas of business.

The goal of the visit for the Finnish delegation this time is three fold; 1) there are lots of Israeli startups and knowledge to be shared, 2) Israeli investors are present and 3) many international investors are at the event as well.

When the program for the visit was announced in February, Greater Helsinki Promotion received applications from about 20 companies. Seven have been considered qualified for the visit. The companies travelling to Israel are Ball-it.com, Concilio Networks, Eniram, EpiCrystals, Ramblas Digital, SenseG, and Whatamap.

These seven companies will visit Israel in two weeks time. IVA’s conference is held on the 19th and 20th of May. After the conference the Finnish startups will have a chance to pitch to some Israeli startups and investors and get feedback from them, perhaps land an investment deal as well.

The program is primarily funded through sponsorship from Greater Helsinki Promotion and Technopolis Ventures BornGlobal, but there is a lot of work put in place pro bono.

Arctic Startup will be following the event very closely and we’ll be reporting on the outcome of the conference later in May.

MoneyTalks Forum Special

Another Technopolis event coming up is MoneyTalks™ Forum Special on 8th of May, claimed to be the largest investor event in Finland during the spring of 2008. The event is invitation-only and targeted to VCs, business angels and promising high-tech & innovation based start-ups seeking financing. Companies interested in pitching in the event should check for further information.

The bi-annual special event promises to feature the rising stars of the Finnish high-tech scene and prominent early stage investors from Finland and abroad. Participants should have plenty of opportunities for one-one-one meetings with investors and entrepreneurs.

Photo by cpalmieri.

Morning seminar: Virtual Communities as a Tool for New Businesses

Technopolis

Technopolis and Technopolis Ventures organize a brief morning seminar on April 29th in Espoo with a theme “Virtual Communities as a Tool for New Businesses”. The free of charge event is quite short, light even, but does feature a keynote from the software business research legend David G. Messerschmitt, what might make it just worth your visit.

More information and registration (due April 24th).