The document discusses growth strategies for Finnish ICT companies. It notes that the combined net sales of 15 Finnish ICT companies was €1,520 million in 2013, with 10-year growth of 6.0% and 4-year growth of 1.0%. The document outlines a four-stage model for company growth: Stage 0 involves building the vision and product, Stage 1 focuses on establishing strategy and management, Stage 2 emphasizes rapid adoption and scaling, and Stage 3 involves expansion into new territories through acquisitions and developing platforms. Several Finnish ICT companies are cited as examples that have been acquired for hundreds of millions after successfully growing through these stages.

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Future Growth
June 17, 2014
15 FINNISH ICT COMPANIES
2
0
500
1 000
1 500
2 000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Net Sales EUR 1520m in 2013
10-year growth 6.0%
4-year growth 1.0%
Market Cap Development
10-year return 1.7%.
0
500
1 000
1 500
2 000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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GROWTH POSITIONING
3
0,0
1,0
2,0
3,0
4,0
5,0
6,0
-10% 10% 30% 50% 70%
AVERAGE EV/S MULTIPLES VS CAGR GROWTH
Proven Scalable / Self-serve SaaS
VC A/B rounds 2014: EV/S 4-5X
Proven SaaS / Software VC B-
rounds 2013: EV/S 2.3 – 2.7x
Listed ICT companies average
EV/S = 1.7
4
GROW FAST OR DIE SLOW

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GROWTH PARADIGM, software
5Source: McKinsey, 2014
6
LETS BUILD SMTHING BIG
FOUR STAGE MODEL

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STAGE 0
7
Vision
Entrepreneur
Innovation
Product Lovers
Constant Renewal
Excitement
Trend riding
OPPORTUNITY
FOR REVOLUTION
Startup Sector 5-yr Est. CAGR (2012-
2017)
Software 29%
Hardware 30.1%
Med Tech 6.3%
Big Data 34.2%
Dev. Platforms 17.9%
START-UP TRENDS
8
TrendsTrends
SoftwareSoftware
HardwareHardware
Med
Tech
Med
Tech
Big DataBig Data
Developer
Platforms
Developer
Platforms
SaaS, Enterprise, Big Data, Ed Tech, & Media Sharing
Internet of Things,
Natural UI,
3D Printing,
Wearable Tech
Patient/Doctor Platforms,
Pharmaceuticals, Medical
Devices, & Healthcare Services
Search, Cloud Computing,
Data Storage, Data Mining,
& Machine Learning
APIs, VoIP, Code
sharing/repositories,
Platform as a Service

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9
STAGE 1
10
Vision => Strategy, G-to-M
Entrepreneur => Management team, Execution
Innovation => Road-map, IPR, Scalability
Enablers Venture Funding
Business Partners, Corporate Support
Serious customer & user traction
100% focus on international set-up

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11
STAGE 2
12
Adapted from McKinsey, 2014
The right market = The BIG one
Monetization model enabling a full scale up
Rapid adoption, massive roll-out. Multiple customers instead
of one big one
Leadership capability, systems, ecosystem.

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STAGE 3
13Adapted from McKinsey, 2014
Expansion into new territories, dig everywhere.
Acquisitions with 100% strategic future fit, not the ones with
mere resource add-ons and size enhancers.
From Product to Platform.
REPEATING THE FINNISH B2B SUCCESS
14
TEKLA – acquired by Trimble for 400m in 2011
STONESOFT – acquired by McAfee/Intel for 300m in 2013
NAPA – acquired by ClassNK for 53m in 2014
DELTAMARIN – acquired by AVIC for 40m in 2012
Sensinode, Applifier, Rightware, Miradore…

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MOST LOW-TECH. AIRBNB.
15
In 2007
… roommates Chesky and Gebbia
made their living room into a bed
and breakfast, accommodating
three guests on air mattresses and
providing homemade breakfast.
In 2014
500 000 places for rent
33 000 cities, 192 countries
Valuation USD 10 billion …
16
PRIVATE MONEY
THE FUTURE GROWTH ENGINE

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How to pitch to VC’s
Pre-seed
Seed Start-up
Early-stage
Expansion
Target / Exit
 Idea generation & formulation
 Business plan
 Company establishment
 Pilot deals, references
 10-50 employees
 Strongest growth phase
 Venture capital funding
 International, GLOBAL
 Solid IPR
 500+ employees
 Worth 1000m
ENTREPRENEURSHIP BOOSTED BY
VENTURE CAPITAL

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10 elements to take care of
19
I What do you actually do?
- Which problem are you solving / what solution are you offering
- Why do you do it
- Why it’s important to potential customers
- What is your market potential mass / niche
II Where is the huge potential?
- The end game has to have huge potential
- Most companies will fail but if there is no such opportunity...
- Product/platform
- Roadmap for the future potential
10 elements to take care of
20
III True market size
- Market has to be there
- Big enough to be interesting
- You have to know your total addressable market
- Segments of the market
IV Secret ingredient – People
- People’s business – in early stage most important element
- No one man shows
- The role of each member – not just CVs of past achievments
- Strenghts & weaknesses – self awareness

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10 elements to take care of
21
V Go-to-market Strategy
- Minimum viable product
- Path of least resistance to customers
- Channel strategy, you have to know the dynamics
- Who has the control of the entry
VI The stage where you are
- Be honest
- Have you already gained the proof & momentum
- KPI’s to support this
- Helps to make the decision
10 elements to take care of
22
VII Real competitive advantage
- Technology/IP, first mover, unique business model
- Long term understanding
- There are always competitors
- All ends up to execution
VIII Show the product
- Demo, easier to understand
- VC’s are not experts in every industry
- Focus where it solves the problem
- UI/UX

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10 elements to take care of
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IX Financials
- Believable projections
- Key drivers
- Both revenues & costs
- What you actually are going to do with the money
X The deal
- How much money you are going to raise
- What’s the plan for future financing
- Cap table
- Idea of the valuation
Finding the perfect partners for financing is crucial, but not easy!
Opportunities of tomorrow

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25
STAGE 3
Adapted from McKinsey, 2014

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Adapted from McKinsey, 2014
Future Growth