What 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. 2
Key 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 3
Programme Governance and Execution The Ministry of Employment and The Economy (TEM) decision 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 andProfictPartners 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) 8/6/11
VigoAccelerators 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. 5
VigoAccelerators 43 highprofileteamsapplied for Vigoaccelerator status at the firstround 2009 Sixhighlyrespectedacceleratorswereselected and in operation Cleantech invest (cleantechventures) Food Process Innovations (innovative human nutrition related businesses) KoppiCatch (ict, mobile) Lifeline Ventures (sciences and telecommunications) Lots (media technology) Veturi Venture Accelerator (ict) 08/06/2011 6
HowdoesVigowork? 7 Companyappliesdirectly to the accelerator of it’schoice. 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 Fast Growth 1. 2. 3. 4. 2009
The acceleration period lasts 18 to 24 months
The accelerators’ main revenuemodel is based on the growth in the company’svalue at the point of exit. Monthlyfeesmayalsobeincluded in the model.
The companiesareable to utilizeTekes’s and Finnvera’sfunding (grants, loans and investments).
Great case stories! (1/2) Valkee http://www.valkee.com ; Light relief for SAD sufferers Supercell http://www.supercell.net/ 12 M USD in May 2011 GreyArea http://www.greyarealabs.com LA-MMORPG, 1,9 m€ in Feb 2011 Microtask http://www.microtask.com ; growdsourcing, 1 m€ in Aug2010 Happy or Not http://www.happy-or-not.com Zokem http://www.zokem.com ; mobile analytics 8
Great case stories! (2/2) Netcycler http://www.netcycler.fi swapping “things” you own Savosolar http://www.savo-solar.fi solar collectors Foodie http://www.foodie.fm eat smart Senseg http://www.senseg.fihaptic displays Enersize http://www.enersize.com energy savings (CAS) Ruisvoima http://www.ruisvoima.fi healthy snacks Total portfolio of 33 companies (end of April 2011) 9
International investors 10 MHS Capital AMBIENT SOUND INVESTMENTS
12 EstherDyson Esther Dyson is an active angel investor in a variety of start-ups, for-profit and otherwise, around the world. She also operates as the Internet’s court jester, a person of no institutional importance who somehow manages to speak the truth and to be heard when and where it matters. She does business as EDventure, the reclaimed name of the company she owned for 20-odd years before selling it to CNET Networks in 2004.
ExcellentResultsAfter the First 18 Months Currently 6 accelerators (ict, web, health, media, cleantech, food) with totally 20 + managers workinghands-on with start-ups. 33 start-ups in portfolio (forecast 50+ byend of 2011). Good deal flows and activeprocess in accelerators to grow portfolio and develop the companies. Morethan 50 m€raised, 2/3 private (60% foreign) First international A-rounds 2010, biggestsofar 7 Meuros. Severalhundred new jobscreated (direct and in-direct). 14 8 June 2011
Future Short term New applicationround for acceleratorsannounced, totalnumber of accelerators 8 to 15 byend of 2011 Accelerator funds to bridge the gap between public early funding and A-round >> more A-rounds >> more growth companies >> first funds 1H2011 Connect and enhance deal flow sources Build and strengthen international network Create awareness and visibility for start-ups, accelerators and the program Long term Renew and invigorate early stage financing Attract new players (VC’s, accelerators) to Finland Strengthen international co-operation (visits, events, pitching, financing, exits) 8 June 2011 17