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
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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
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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
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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
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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
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7. Vigo Accelerators
Pertti Valtonen
11/07/2013
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8. Investors and VC’s:
MHS
Capital
AMBIENT SOUND INVESTMENTS
Juuranto Invest
Troll Capital
Kasvurahastojen Rahasto
Pertti Valtonen
11/07/2013
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9. Great case stories!
Pertti Valtonen
11/07/2013
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10. Growth of Funding (%) Between
1July12 and 30June13 by Source
Pertti Valtonen
11/07/2013
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11. Cumulative funding, M€
Private and Public Funding in
Target Companies
Pertti Valtonen
11/07/2013
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12. Framework conditions for
entrepreneurship
Source: Nordic Growth Entrepreneurship Review 2012
Pertti Valtonen
28.1.2013
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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
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