2What 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.
3Key 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
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)23/4/12
5Vigo 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.
6Vigo Accelerators 1/2 Cleantech Invest Clean tech venturesBioAssetFinland BioAssetFinland Life science, medical molecules Gorilla Ventures Ict relative solutions KoppiCatch Ict, mobile analytics Lifeline Ventures Life sciences, telecommunications and games
7Vigo Accelerators 2/2 Newentures ”Radical inventions”, ict, Royal Majestics Fashion & lifestyle Vendep Web based businesses and services Veturi Venture Accelerator b2b ict
8How does Vigo work?Company Acceptance isapplies directly based upon eva-to the The accelerator luation of theaccelerator of it’s invests time and business idea, The acceleratorchoice. 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).
9Great case stories! Total portfolio more than 40 companies !
10International Investors MHS Capital AMBIENT SOUND INVESTMENTS
12 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.
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
14 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).23 April 2012
15 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 31.12.201123 April 2012
16 Funding by Source in Target Companies 25,00 € Cumulative, M€ 20,00 € Accelerators own Finnvera 15,00 € Tekes R&D 10,00 € Domestic private Tekes NIY 5,00 € Foreign private 0,00 € 14 months 19 months 23 months 29 months By 30.9. By By By 2010 28.2.2011 30.6.2011 31.12.201123 April 2012
17 Distribution of Cumulative Funding in Target Companies By 30.6.2011 By 31.12.2011 (Totally 57,3 M€) Totally 70,7 M€ Accelera- Accelera- Finnvera tors own Domestic Tekes Finnvera tors own Domestic Tekes 5% 6% 7% private R&D 8% R&D private 17 % 18 % 15 % 18 % Foreign Foreign private private 34 % 33 %Tekes NIY Tekes NIY19 % 20 % 23 April 2012
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
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
20 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 Europe23 April 2012