11.b. valtonen financing and accelerators for hg fs in finland_rev
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
The Hague, 7 November, 2013
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
• Alongside supply of capital to support demand with Vigo
• 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.
• 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
• The Accelerators have been selected from the
best applicants in their respective fields in a
public procurement process.
Combine The Best Forces to:
Increase The Number of Successful Growth Companies and
Develop the Ecosystem
Public and private
Experienced serial entrepreneurs
Vigo Venture Acceleration Process
For Potential High Growth Start-ups
How does Vigo work?
idea, team and
sui-tability of the
company for the
invests time and
a hands-on role
The acceleration period lasts 18 to 24 months
The accelerators’ main revenue model is based on the growth in the
company’s value at the point of exit. Monthly fees may also be included in the
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.
Investors and VC’s:
AMBIENT SOUND INVESTMENTS
Great case stories!
Growth of Funding (%) Between
1July12 and 30June13 by Source
Cumulative funding, M€
Private and Public Funding in
Framework conditions for
Source: Nordic Growth Entrepreneurship Review 2012
• 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.