Finland’s first co-investment fund launched Angel investors to provide new capital for startups
A completely new type of fund starts in the Finnish capital market, investing in early-stage companies together with angel investors. The new co-investment fund provides public and private funding for businesses selected by angel investors. The fund’s capital is EUR 30 million provided by Business Finland Venture Capital Oy (BFVC). The fund is managed by investment company Innovestor.
The co-investment fund aims to invest in up to 100 startups, with a maximum investment of EUR 600,000 per company. Private business angels will look for suitable investments for the fund, and the management company will make investment decisions based on proposals that meet certain criteria. The fund and business angels will then co-invest in the company.
"The co-investment fund is bringing a new and unique funding channel to Finnish startups. The aim is to strengthen the capital base of companies with the support of angel investors and to speed up the completion of funding rounds to improve the companies' growth possibilities."
"Entrepreneurs have a new channel now to find investors, and business angels support business with their expertise. The fund is an excellent combination of public and private capital and private decision-making. Great opportunities are opening up for startups and angel investors,” says Petri Serenius, Investment Director at BFVC.
A minimum of three investors required
Private investor groups are expected to form on market terms. At least three investors are required to submit an investment proposal to the fund. Group members do not have to be professional business angels. The fund management company Innovestor evaluates the investment opportunities and makes the decisions.
“Finnish companies with a maximum age of five years are suitable for investment. The fund's first investment in the company is at most the same size as the one made by angel investors, and both are required to invest at least EUR 50,000 or no more than EUR 300,000," says Petri Serenius.
"For startups, the new fund will enable larger funding rounds faster. Early-stage startups and science-based companies play a key role in building a more sustainable world, which is important to us."
“With this fund, angels who have previously acted independently will be able to participate in more interesting investment opportunities with larger investment amounts.” says Wilhelm Lindholm, CEO of Innovestor.
“Especially in the current market, where there is a high demand for financing, a new investment method, such as the co-investment fund, comes at just the right time. With the new fund, we will be able to facilitate the initial funding of Finnish startups extensively,” Lindholm adds.
FiBAN helps find investor groups
The co-investment fund will invest in early-stage companies, which are important in renewing the Finnish economic structure. They contribute to the productivity and growth in Finland. In the early stages, business risks are at their highest, so angel investors play a significant role in supporting early-stage companies. The Finnish Business Angels Network (FiBAN) is actively involved in promoting the formation of suitable investor groups for the co-investment fund.
“We have 670 members at FiBAN; their combined capital investments already exceed 400 million euros. There are about 1,700 companies that have received funding and hundreds of new ones are added every year, so we can definitely find suitable investor groups and companies for the co-investment fund," says FiBAN's CEO Tiina Laisi-Telehoinen.
For more information
Petri Serenius, Investment Director
Business Finland Venture Capital
petri.serenius (at) businessfinland.vc
+358 50 599 3683
Heli Mehtätalo-Takala, Director, Marketing & Communications
Innovestor
heli.mehtatalo-takala (at) innovestor.fi
+358 50 402 6781
Tiina Laisi-Puheloinen, CEO
FiBAN
tiina.laisi-puheloinen (at) fiban.org
+358 40 750 7417
Business Finland Venture Capital Oy (BFVC) is collaborating with venture capital funds and business angels to contribute to the growth and development of early-stage companies and the Finnish venture capital market. BFVC has invested in 17 funds whose total capital is approximately EUR 320 million and which have invested in over 340 companies. BFVC is wholly owned by the Finnish state, and its ownership steering is the responsibility of the Innovation Funding Agency Business Finland.
Innovestor is a Finnish investment company specializing in early-stage private equity and commercial real estate investments. We also offer corporate venturing services. The total assets of the private equity funds we manage is over EUR 250 million, and we are one of the most active venture capital investors in the Nordic countries. Our mission is to make good money. innovestorgroup.com
Finnish Business Angels Network (FiBAN) is a non-profit association that promotes the private investments into unlisted growth companies. The purpose of the association is to grow and develop the profession of private investors and to connect growth companies with angel investors. FiBAN is one of the largest and most active business angel networks in Europe, with 670 approved investor members. In 2022, 248 early-stage companies received funding through FiBAN.
