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Finnvera Venture Capital

13.3.2012

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Finnvera Venture Capital

• Finnvera Plc’s venture capital arm founded in

2003

• 19 people located in Helsinki, Kuopio, Oulu and

Tampere

• 10 managers

• CEO + back office + senior advisor

•Member of FVCA, EVCA and EBAN

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Fund of funds

Seed Fund Vera Ltd

BAN InvestorExtra

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Seed Fund Vera Ltd

•Evergreen fund founded in August 2005

• 113,5 MEUR under management

•Current investors: Sitra, Ilmarinen, TEK,

Finnvera Plc, Fennia Group

• 176 investments; 134 portfolio companies

(02/2012)

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Investment Policy

• Investments in early stage (seed and startup) technology

and technology intensive service companies

• No industry limitations

• Invests in Finland

• Equity and convertible loans

• Typical ownership in portfolio companies 15 – 25 %

• Typical initial investment 200 – 300 k€; max 500k€

• High priority to syndicate / co-invest with business

angels and other private investors

• Finnvera usually the lead investor

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Co-Investment principles

• Finnvera requires a board seat, but usually e.g. a co-

investing business angel is appointed to the board

• Finnvera’s share of the whole investment round varies

between 25 – 70%

• Investments are made pari passu

• Finnvera has own independent investment decision

process, but co-investors are viewed as a positive factor

in a deal

• DD on co-investors made on a deal by deal basis

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BAN InvestorExtra

• Founded in February 2008

• 200+ business angels

• Services

• Pitching Events

• Training

• Extranet, document templates…

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Deal Flow to Business Angels

1. from Finnvera • startups from Finnvera VC’s deal flow or portfolio; typically Finnvera

co-investing

• has to fit in Seed Fund Vera Ltd’s investment policy

• can also include companies from Tekes NIY program

2. from Vigo-accelerators • startups from Vigo-accelerators deal flow or portfolio

• approved by the accelerators

3. through business angel screening (“Enkeliputki”) • startups looking to raise maximum of 200.000 €

• selected by screening committee of 4 business angels

• www.finnvera.fi/eng/Venture-Capital-Investments/Entrepreneurs/Applying-for-an-investment-from-business-angels

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Figures 2008 – 2011

2008 2009 2010 2011

Number of Business Angels in the Network 98 132 135 179

Number of Pitching Events 4 6 6 7

Number of companies introduced to the angels 40 39 45 81

Finnvera VC’s investments (€) 11,6 M€ 15,1 M€ 16,5 M€ 13 M€

Number of business angel co-investing with Finnvera VC 36 56 144 137

Amount co-invested by business angels 6,2 M€ 4,2 M€ 8,1 M€ 8,7 M€

Finnvera VC’s initial investments (number) 40 29 19 17

Finnvera VC’s follow-on investments (number) 31 55 63 63

Co-Investments with Business Angels (% of total initial

investments)

11

(27,5%)

20

(69%)

11

(58%)

12

(71%)

Co-Investments with Business Angels (% of total follow-

on investments)

40

(63%)

40

(63%)

Companies applying through “Enkeliputki” 36 117

Companies accepted from “Enkeliputki” 21 56

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Vigo-programme –

Public and Private Funding in Target Companies

13 March 2012

Cum

ula

tive fundin

g,

M€

24,20 €

39,60 €

57,3

70,7 €

0,00 €

10,00 €

20,00 €

30,00 €

40,00 €

50,00 €

60,00 €

70,00 €

80,00 €

14 months 19 months 23 months 29 months

By 30.9. 2010 By 28.2.2011 By 30.6.2011 By 31.12.2011

Total private

Total public

Grand total

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Portfolio companies

13.3.2012

Valkee - http://www.valkee.com ; Light relief for SAD sufferers

Netcycler - http://www.netcycler.fi swapping “things” you own

Digital Foodie - http://www.foodie.fm ;

“What would I buy and eat today?”

Senseg - http://www.senseg.fi haptic displays

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Portfolio companies

13.3.2012

DealDash - http://www.dealdash.com ;

penny auctions

Magisso - http://www.magisso.fi ; develop and commercialize

unique design products and new innovations that will help the every day life.

M-Brain - http://www.m-brain.com ;

business intelligence

Mendor - http://www.mendor.com ;

diabetes management

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Portfolio companies

13.3.2012

Nervogrid - http://www.nervogrid.eu ; cloud application store

Zokem (exit 7/2011, Arbitron inc.) - http://www.zokem.com ; mobile analytics

Powerkiss - http://www.powerkiss.com ; wire-free crarging

ZenRobotics - http://www.zenrobotics.com ;

robot-based recycling system

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13.3.2012

Thank You!

keith.bonnici@finnvera.fi

+358 40 179 9584

www.finnvera.fi/eng/Venture-Capital-Investments