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Vigo Venture Accelerators Driving Fast Growth of High Potential Start-ups

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Page 1: Vigo prese04042014

Vigo Venture Accelerators Driving Fast Growth of High Potential Start-ups

Page 2: Vigo prese04042014

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.

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Combine The Best Forces to: Increase The Number of Successful Growth Companies and To Develop the Ecosystem

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Experienced serial entrepreneurs

The most Potential start-ups

Public and private funding

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Vigo Venture Acceleration Process For Potential High Growth Start-ups

Deal flow sources

Experience Involvement Investment

Universities and Research Centers

Regional centers and COE’s*

Incubators Innovation Foundation

Corporate spin-offs Other

Further financing options

VC’s

(Super)angels

Industrial investors

Organic growth, other

Venture accelerators

Pre-seed accelerators

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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

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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 TEM in August 2009.

•  Tekes is responsible for the implementation of the program and has contracted Profict Partners Oy to coordinate the implementation.

•  An independent evaluation of the Program was made in the fall 2012ˆ. •  The Guiding Principles, the Steering Group with its charter and

members were renewed from March 1st, 2013 by the ministry.

*Finnish Funding Agency for Technology and Innovation **Currently Finnvera VC (The VC part of Finnvera investing public funds in early stage companies) ˆThe Vigo Program, Mid-Term Evaluation, MEE report 4/2013

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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.

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Vigo Accelerators 1/2

Cleantech ”Investing in clean future” ICT, media ”Building businesses investors would love to own” Digital media, analytics, commerce “We produce new business”

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ICT, applications, media ”Finnish innovations to Asian markets”

Digital East Europe ” It’s a shorter journey when you have a paying customer”

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Vigo Accelerators 2/2

Fashion, design, lifestyle ”Helping to establish fashion and design brands”

,

Online services ”Turning ideas into innovations”

B2B and B2B2C ICT ”Looking for the next big thing”

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Clean, energy, ICT ”Inventions with good intentions” Newentures

Health, web, games, advanced tech ”Co-creating category leaders”

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How Does Vigo work?

2009

1.

2.

3.

4.

Company applies directly to the accelerator of it’s choice.

Acceptance is based upon eva-luation of the business idea, team and sui-tability of the company for the program.

The accelerator managers take a hands-on role in operations and biz development

Fast Growth

Description

§  The acceleration period lasts 18 to 24 months §  The accelerators’ main revenue model is based on the growth in the 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). §  Total funding package (private and public) for the Acceleration Period varies

between 1 to 2 million euros.

The accelerator invests time and money and becomes a shareholder in the company

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Great Start-ups in Portfolios!

Total portfolio 87 companies (31.12.2013)! 09/04/14

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World Class Investors and VC’s: MHS Capital

AMBIENT SOUND INVESTMENTS

Juuranto Invest

Troll Capital Kasvurahastojen Rahasto

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Angel Investors

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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.

Esther Dyson

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9 April 2014

15

0

50

100

150

200

250

300

350

23 months 29 months 35 months 41 months 47 months 53 months

By 30.6.2011

By 31.12.2011

By 30.6.2012

By 31.12.2012

By 30.6.2013

By 31.12.2013

Total private

Total public

Grand total

Private and Public Funding in Target Companies

Cum

ulat

ive

fund

ing,

M€

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Distribution of Cumulative Funding in Target Companies

Accelera-tors own

5% Domestic private 20%

Foreign private 34 %

Tekes NIY 19%

Tekes R&D 16%

Finnvera 6%

By 31.12.2012 Totally 135,4 M€

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Accelerators own 4% Domestic

private 16%

Foreign private 56%

Tekes NIY 10%

Tekes R&D 9%

Finnvera 4%

Tesi 1%

By 31.12.2013 Totally 288 M€

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Summary of Cumulative Results by 31Dec2013 •  Total cumulative funding in target companies was 289 M€, 76% from

private and 24% from public sources. •  Accelerators have invested 11 M€ in four years. •  Foreign private investments were 162 M€ representing 56 % of total

cumulative funding. •  Domestic private investments were 58 M€ (20% of total) •  Total public funding (Tekes, Finnvera, Teollisuussijoitus) about 70 M€. •  Acceleration agreement with 104 companies, 17 are out (qualified, exit,

termination etc.). •  Total portfolio 87 companies, 66 in active acceleration, 21 through it and

in investment portfolio. •  Additionally 40 m€ have been raised into five Accelerator funds for

investments in target companies. •  Total exit value beyond 2,2 B€ measured by transaction value!

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The initial objective of the Vigo program has been achieved 2 years ahead of time!

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What’s in It for Me? •  For investors:

•  Professionally qualified opportunities

•  Experienced and committed management teams

•  High leverage initial funding (R&D and BD grants& loans)

•  For start-up companies: •  Business competence

•  Experience •  Drive for growth

•  Customers, contacts and further financing

>> Accelerated growth, increasing value

•  For the accelerators: •  Significant public leverage in target

company financing •  Financial returns with successful

exits •  Rewarding and challenging career

options

•  For the community •  Jobs and tax-payers •  Export income •  Increasing knowledge capital •  Wealth and prosperity

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If You Are a Foreign High Potential Start-up Looking for Fast Growth and… •  Need experienced hands-on strategic and operative guidance/

support •  Need funding to make it all happen and…

•  Are flexible to accept outside (venture type) equity funding •  Are willing to relocate (some of) your operations to Finland

…teaming-up with a Vigo AcceIerator might be the best option for you! •  You can start by checking out www.vigo.fi and … •  We can help you to get going!

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Thank You! www.vigo.fi

[email protected] [email protected]