11.b. valtonen financing and accelerators for hg fs in finland_rev
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11.b. valtonen financing and accelerators for hg fs in finland_rev

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11.b. valtonen financing and accelerators for hg fs in finland_rev Presentation Transcript

  • 1. Financing and business accelerators for high-growth firms in Finland Pertti Valtonen, Counsellor Ministry of Employment and the Economy, Finland International Workshop on Entrepreneurial Ecosystems and Growth-Oriented Entrepreneurship The Hague, 7 November, 2013
  • 2. Government policy in financing highgrowth firms • Bringing continuity to the market with a fund of EUR 1 billion. • Starting to use asymmetric profit sharing to attract private investors. • Alongside supply of capital to support demand with Vigo accelerators. • Alongside providing capital to use tax incentive for business angels and R&D tax incentive for enterprises. • Streamlining the seed and early stage government financing. • Moving from direct investments to fund investments. • Changing priority from subsidies to equity investments. Pertti Valtonen 11/07/2013 2
  • 3. Vigo Accelerators • The Vigo Accelerators are private companies that are run by experienced entrepreneurs. • The Accelerators offer their proven business expertise, funding, and extensive contact networks to the target companies. • The Accelerators invest both money and time into the target companies and take on both a strategic and an operative role in the companies. • The Accelerators have been selected from the best applicants in their respective fields in a public procurement process. Pertti Valtonen 11/07/2013 3
  • 4. Combine The Best Forces to: Increase The Number of Successful Growth Companies and To Develop the Ecosystem Public and private funding Experienced serial entrepreneurs The most Potential start-ups Pertti Valtonen 11/07/2013 4
  • 5. Vigo Venture Acceleration Process For Potential High Growth Start-ups Deal flow sources Venture accelerators Universities and Research Centers Regional centers and COE’s* Pre-seed accelerators Incubators Innovation Foundation Corporate spin-offs Other Pertti Valtonen Further financing options VC’s Experience Involvement Investment (Super)angels Industrial investors Organic growth, other 11/07/2013 5
  • 6. How does Vigo work? Company applies directly to the accelerator of it’s choice. Acceptance is based upon eva-luation of the business idea, team and sui-tability of the company for the program. The accelerator invests time and money and becomes a shareholder in the company The accelerator managers take a hands-on role in operations and biz development 1 2 3 4  The acceleration period lasts 18 to 24 months . . . .  The accelerators’ main revenue model is based on the growth in the Fast Growth 2009 company’s value at the point of exit. Monthly fees may also be included in the Descriptio model. n  The companies are able to utilize Tekes’s and Finnvera’s funding (grants, loans and investments).  Total funding package (private and public) for the Acceleration Period varies between 1 to 2 million euros. Pertti Valtonen 11/07/2013 6
  • 7. Vigo Accelerators Pertti Valtonen 11/07/2013 7
  • 8. Investors and VC’s: MHS Capital AMBIENT SOUND INVESTMENTS Juuranto Invest Troll Capital Kasvurahastojen Rahasto Pertti Valtonen 11/07/2013 8
  • 9. Great case stories! Pertti Valtonen 11/07/2013 9
  • 10. Growth of Funding (%) Between 1July12 and 30June13 by Source Pertti Valtonen 11/07/2013 10
  • 11. Cumulative funding, M€ Private and Public Funding in Target Companies Pertti Valtonen 11/07/2013 11
  • 12. Framework conditions for entrepreneurship Source: Nordic Growth Entrepreneurship Review 2012 Pertti Valtonen 28.1.2013 12
  • 13. Policy statements • Critical mass of passionate entrepreneurs striving for rapid growth, • Infusion of top-level business experience into startups to guidance on how to achieve breakthroughs in global markets, • Strong enough incentives for seed investors (tax breaks, asymmetric profit sharing), • Government funding to match private investments, if needed. Pertti Valtonen 11/07/2013 13