Vigo Venture AcceleratorsDriving Fast Growth of High Potential Start-ups
2  What is the Vigo Program?  • Vigo is a new type of acceleration program designed to    complement the internationally a...
3  Combine The Best Forces to:  Increase The Number of Successful Growth Companies and To  Develop the Ecosystem          ...
4Vigo Venture Acceleration ProcessFor Potential High Growth Start-ups        Deal flow       Venture accelerators   Furthe...
5  Key objectives            • The key objectives of the Vigo Program are to:               – Motivate the best business d...
6Program Governance and Execution•    The Ministry of Employment and The Economy (TEM) decided to start     the Vigo Progr...
7  Vigo Accelerators            • The Vigo Accelerators are private companies              that are run by experienced ent...
8Vigo Accelerators                                 1/2                    Cleantech                    ”Investing in clean...
9 Vigo Accelerators                                      2/2                     ,                     Fashion, design, li...
10  How does Vigo work?  Company                        Acceptance is  applies directly                        based upon ...
11Great case stories!3/25/2013   Total portfolio 67 companies (30.12.2012)!
12Investors and VC’s:                                                      MHS                                            ...
13  Angel Investors3/25/2013
14                  Esther DysonEsther Dyson is an active angel investor in avariety of start-ups, for-profit and otherwis...
15                                          Private and Public Funding in                                               Ta...
16               Distribution of Cumulative Funding                      in Target Companies            By 31.12.2011     ...
17 Results Summary (by 31Dec 2012), 1/2 • Total cumulative funding in target companies was 135,4 M€, 60%   from private an...
18  Results Summary (by 31Dec 2012), 2/2  • Total service portfolio is 58 named companies (as reported by    the accelerat...
Satisfaction with Cooperation betweenStart-Ups and Vigo Accelerators           Service Quality                            ...
Accelerators Impact in Key  Business Areas of Start-UpsSales/Customer Acquisition                             3.16        ...
21  What’s in It for Me?  •         For investors:                                      • For the accelerators:           ...
22  If You Are a Foreign High Potential Start-up  Looking for Fast Growth and…  • Need experienced hands-on strategic and ...
Thank You!         www.vigo.fiseppo.ruotsalainen@profict.fi  marit.tuominen@profict.fi
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Vigo presentation 31062012

  1. 1. Vigo Venture AcceleratorsDriving Fast Growth of High Potential Start-ups
  2. 2. 2 What is the Vigo Program? • Vigo is a new type of acceleration program designed to complement the internationally acclaimed Finnish innovation ecosystem. • The Vigo Program assigns selected independent accelerator companies to provide drive, experience and financing opportunities for high-potential Finnish start-ups.3/25/2013
  3. 3. 3 Combine The Best Forces to: Increase The Number of Successful Growth Companies and To Develop the Ecosystem Public and private funding The most Experienced serial Potential start-ups entrepreneurs3/25/2013
  4. 4. 4Vigo Venture Acceleration ProcessFor Potential High Growth Start-ups Deal flow Venture accelerators Further financing sources optionsUniversities and VC’sResearch CentersRegional centersand COE’s* Experience (Super)angelsPre-seed Involvementaccelerators Investment Industrial investorsIncubatorsInnovation FoundationCorporate spin-offs Organic growth,Other other 3/25/2013
  5. 5. 5 Key objectives • The key objectives of the Vigo Program 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 Finland3/25/2013
  6. 6. 6Program Governance and Execution• The Ministry of Employment and The Economy (TEM) decided to start the Vigo Program 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 is responsible for program implementation and based on Tekes’ mandate, the program is coordinated by Profict Partners ltd.• An independent evaluation of the Program was made in the fall 2012ˆ.• The Guiding Principles were renewed and the Steering Group re- nominated from March 1st, 2013. *Finnish Funding Agency for Technology and Innovation **Currently Finnvera VC (The VC part of Finnvera investing public funds in early stage companies) ˆThe Vigo Program, Mid-Term Evaluation, MEE report 4/20133/25/2013
  7. 7. 7 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.3/25/2013
  8. 8. 8Vigo Accelerators 1/2 Cleantech ”Investing in clean future” ICT, media ”Building businesses investors would love to own” Digital media, analytics, commerce “We produce new business” Health, web, games, advanced tech ”Co-creating category leaders” Clean, energy, ICT ”Inventions with good intentions” 3/25/2013
  9. 9. 9 Vigo Accelerators 2/2 , Fashion, design, lifestyle ”Helping to establish fashion and design brands” UKKO Partners Life Science, health ”Investors in clinical development” Online services ”Turning ideas into innovations” B2B and B2B2C ICT ”Looking for the next big thing” ICT, applications, media ”Finnish innovations to Asian markets”3/25/2013
  10. 10. 10 How does Vigo work? Company Acceptance is applies directly based upon eva- to the The accelerator luation of the accelerator of it’s invests time and business The accelerator choice. 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 . .  The acceleration period lasts 18 to 24 months . . 200  The accelerators’ main revenue model is based on the growth in the company’s Descriptio 9 value at the point of exit. Monthly fees may also be included in the 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.3/25/2013
  11. 11. 11Great case stories!3/25/2013 Total portfolio 67 companies (30.12.2012)!
  12. 12. 12Investors and VC’s: MHS Capital AMBIENT SOUND INVESTMENTS Juuranto Invest Troll Capital Kasvurahastojen Rahasto3/25/2013
  13. 13. 13 Angel Investors3/25/2013
  14. 14. 14 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. 3/25/2013
  15. 15. 15 Private and Public Funding in Target Companies 160 € Cumulative funding, M€ 140 € 120 € 100 € 080 € Total private 060 € Total public 040 € Grand total 020 € 000 € 19 months 23 months 29 months 35 months 41 months By 28.2.2011 By 30.6.2011 By By 30.6.2012 By 31.12.2011 31.12.20123/25/2013
  16. 16. 16 Distribution of Cumulative Funding in Target Companies By 31.12.2011 By 31.12.2012 Totally 70,7 M€ Totally 135,4 M€ Accelera- Accelera- Finnvera tors own Tekes Finnvera tors ownTekes Domestic Domestic 8% 6% R&D 6% 5% R&D private private 15% 18% 16% 20% Tekes NIY Tekes NIY Foreign 19% Foreign 20% private private 33% 34%3/25/2013
  17. 17. 17 Results Summary (by 31Dec 2012), 1/2 • Total cumulative funding in target companies was 135,4 M€, 60% from private and 40% from public sources. • Accelerators have invested 7,4 M€ in three years. • Foreign private investments were 46,3 M€ representing 34 % of total cumulative funding. • Domestic private investments were 27,4 M€ (20% of total) • Tekes NIY was 25,2 and R&D about 21,0 m€ and Finnvera VC 8,1 M€. • Four exits by the end of 2012. • Commitments into Accelerator Funds totally about 27 M€.3/25/2013
  18. 18. 18 Results Summary (by 31Dec 2012), 2/2 • Total service portfolio is 58 named companies (as reported by the accelerators). Total service and investment portfolio is 67 companies. • Totally there were 580 employees in target companies (increase by 350 employees since signing of contract). • Total revenue of target companies was 95 M€ (est). • Outlook: Accelerators estimate portfolio sizes to grow clearly during 2013.3/25/2013
  19. 19. Satisfaction with Cooperation betweenStart-Ups and Vigo Accelerators Service Quality 4.16Accelerators Competence 4.47 Acclerators Availability 3.63Importance of Cooperation 3.68 Importance for Financing 4.11 1 1.5 2 2.5 3 3.5 4 4.5 5
  20. 20. Accelerators Impact in Key Business Areas of Start-UpsSales/Customer Acquisition 3.16 Marketing 3.26 Product Development 2.95 Financing 4.26 Internationalization 3.79 HR Management 3.11 Business Strategy 3.95 1 1.5 2 2.5 3 3.5 4 4.5 5
  21. 21. 21 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 • Export income • Drive for growth • Increasing knowledge capital • Customers, contacts and further • Wealth and prosperity financing >> Accelerated growth, increasing value3/25/2013 Vigo Accelarator Program
  22. 22. 22 If You Are a Foreign High Potential Start-up Looking for Fast Growth and… • Need experienced hands-on strategic and operative guidance/support • Need funding to make it all happen and… • Are flexible to accept outside (venture type) equity funding • Are willing to relocate (some of) your operations to Finland …teaming-up with a Vigo AcceIerator might be the best option for you! • You can start by checking out www.vigo.fi and … • We can help you to get going!3/25/2013
  23. 23. Thank You! www.vigo.fiseppo.ruotsalainen@profict.fi marit.tuominen@profict.fi

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