2What is Vigo?• Vigo is a new type of acceleration programme designed to complement the internationally acclaimed Finnish innovation ecosystem.• The Vigo Programme assigns selected independent accelerator companies to provide drive, experience and financing opportunities for high-potential Finnish start-ups.
3Key objectives • The key objectives of the Vigo Programme are to: – Motivate the best business developers to help the most promising start-ups grow into successful companies – Ensure early stage funding for the target companies, increase their shareholder value, and make them attractive targets for venture investors – Raise significant venture capital investments for continued expansion of the target companies after the acceleration stage – Develop the Finnish venture capital market and bring more international acceleration and venture capital players into Finland
Programme Governance and Execution• The Ministry of Employment and The Economy (TEM) decided to start The Vigo Programme in March 2009 in cooperation with Tekes* and Veraventure**.• A Steering Group representing significant experience and expertise in the international growth business was nominated by the TEM in August 2009.• Tekes coordinates the programme and Profict Partners Oy manages the execution of the program. *Finnish Funding Agency for Technology and Innovation **Currently Finnvera VC (The VC part of Finnvera investing public funds in early stage companies)12/12/11
5Vigo 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.
6Vigo accelerators 2011:• 43 high profile teams applied for Vigo accelerator status at the first round 2009• Six (6) highly respected accelerators were selected and in operation
7How does Vigo work?Company Acceptance isapplies directly based upon eva-to the The accelerator luation of theaccelerator of it’s invests time and business The acceleratorchoice. money and idea, team and managers take a sui-tability of the becomes a hands-on role in company for the shareholder in operations and program. the company biz development Fast Growth 1 2 3 4 . period lasts.18 to 24 months . The acceleration . 200 Descriptio The accelerators’ main revenue model is based on the growth in the n 9 company’s value at the point of exit. Monthly fees may also be included in the model. The companies are able to utilize Tekes’s and Finnvera’s funding (grants, loans and investments).
8Great case stories! Total portfolio more than 40 companies !
9International Investors MHS Capital AMBIENT SOUND INVESTMENTS
11 Esther DysonEsther Dyson is an active angel investor in avariety of start-ups, for-profit and otherwise, around the world. She also operates as theInternet’s court jester, a person of no institutionalimportance who somehow manages to speak the truth and tobe heard when and where it matters. She does business asEDventure, the reclaimed name of the company she owned for20-odd years before selling it to CNET Networks in 2004.
What’s in It for Me?• For investors: • For the accelerators: • Professionally qualified • Significant public leverage in target opportunities company financing • Experienced and committed • Financial returns with successful management teams exits • High leverage initial funding (R&D • Rewarding and challenging career and BD grants& loans) options• For start-up companies: • For the community • Business competence • Jobs and tax-payers • Experience • Wealth and prosperity • Drive for growth • Customers, contacts and further financing >> Accelerated growth, increasing value
13 Excellent Results After the First 20 Months • Currently 6 accelerators (ict, web, health, media, cleantech, food) with totally 20 + managers working hands-on with start- ups. • Over 40 start-ups in portfolio (forecast 50+ by end of 2011). • Good deal flows and active process in accelerators to grow portfolio and develop the companies. • Almost 60 m€ raised, 60% private (36% of total is foreign) • First international A-rounds 2010, biggest so far 7 Meuros. • First exit Zokem was aquired by Arbitron (US) for 11,7 MUSD • Several hundred new jobs created (direct and in-direct).12 December 2011
14 Public and Private Funding in Vigo Programme Cumulative, M€ 70.00 €Cumulative funding, M€ 60.00 € 50.00 € 40.00 € 30.00 € Total private 20.00 € Total public Grand total 10.00 € 0.00 € 14 months 19 months 23 months By 30.9. 2010 By 28.2.2011 By 30.6.2011 12 December 2011
15 Distribution of Cumulative Funding by Source (28.2. vs. 30.6.2011) By 28.2. 2011 By 30.6.2011 (Totally 39,6 M€) (Totally 57,3 M€) Domest Domestic Finnver Accelerat Accelerat non- ic non- Finnvera ors own a ors own accelerat Tekes accelerat 9% 5% 7% 5% orsTekes ors R&D R&D 21% 17% 18% 20% Tekes Foreign Foreign NIY private private 19% 24% 34% Tekes NIY 21% 12 December 2011
16 Future • Enhancements – More accelerators – Accelerator funds – Connect and strengthen deal flows • Strengthen international network – Create awareness and visibility for start-ups, accelerators and the program within selected communities – Invite and attract (through results) investors, VC’s and accelerators • Renew and invigorate early stage financing • Strengthen exchange of information and experience with leading international programs12 December 2011