2. 2
What is Vigo?
• 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. 3
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
Finland
4. Program 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 coordinates the program 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)
24/2/12
5. 5
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.
7. 7
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 idea, The accelerator
choice. money and
team and sui- managers take a
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).
11. 11
Esther Dyson
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.
12. 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. 13
Excellent Results After the First 20 Months
• Currently 4 accelerators with totally 20 + managers working
hands-on with start-ups.
• Total portfolio over 40 high potential start ups assigned in
accelerators
• Good deal flows and active process in accelerators to grow
portfolio and develop the companies.
• More than 70 m€ raised, 60% private (one third of which is
foreign private capital)
• First international A-rounds 2010, biggest so far 7 Meuros.
• First exit Zokem was aquired by Arbitron (US) for 11,7 MUSD
• Two microfunds raised with more tha 5 m€ commitments.
• Several hundred new jobs created (direct and in-direct).
24 February 2012
14. 14
Public and Private Funding in
Target Companies
80.00 €
Cumulative funding, M€
70.7 €
70.00 €
60.00 € 57.3
50.00 €
39.60 €
40.00 €
Total private
30.00 € Total public
24.20 €
Grand total
20.00 €
10.00 €
0.00 €
14 months 19 months 23 months 29 months
By 30.9. 2010 By 28.2.2011 By 30.6.2011 By 31.12.2011
24 February 2012
15. 15
Funding by Source in Target Companies
25.00 €
Cumulative, M€
20.00 €
Accelerators
own
15.00 €
Finnvera
10.00 € Tekes R&D
Domestic
5.00 € private
Tekes NIY
0.00 €
Foreign private
14 months 19 months 23 months 29 months
By 30.9. By By By
2010 28.2.2011 30.6.2011 31.12.2011
24 February 2012
16. 16
Distribution of Cumulative Funding
in Target Companies
By 30.6.2011 By 31.12.2011
(Totally 57,3 M€) Totally 70,7 M€
Finnvera Accelera- Accelera-
7% tors own Domestic Finnvera tors own
Tekes Tekes Domestic
5% private 8% 6%
R&D R&D private
17% 18 % 15% 18%
Foreign Foreign
private private
34% 33%
Tekes
NIY Tekes NIY
19 % 20%
24 February 2012
17. Satisfaction with Cooperation between
Start-Ups and Vigo Accelerators
Service Quality 4.16
Accelerators Competence 4.47
Acclerators Availability 3.63
Importance of Cooperation 3.68
Importance for Financing 4.11
1 1.5 2 2.5 3 3.5 4 4.5 5
18. Accelerators Impact in Key
Business Areas of Start-Ups
Sales/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
19. 19
Future
• Enhancements
– More accelerators
– More startups into portfolios
– Accelerator funds
– Connect and strengthen deal flows
• Strengthen international network
– Create awareness and visibility for start-ups, accelerators and the program
within selected communities
– Maintain quality (program, accelerators, target companies, deal flow)
– Invite and attract (through results) investors, VC’s and accelerators
– Strengthen exchange of information and experience with leading
international programs
• Renew and invigorate early stage financing
• Make Helsinki The Accelerator Hub of Europe
24 February 2012
