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

2. 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.10/30/2013 3. 3Combine The Best Forces to: Increase The Number of Successful Growth Companies and To Develop the EcosystemPublic and private fundingThe most Potential start-ups10/30/2013Experienced serial entrepreneurs 4. 4Vigo Venture Acceleration Process For Potential High Growth Start-ups Deal flow sourcesVenture acceleratorsUniversities and Research Centers Regional centers and COEs* Pre-seed accelerators Incubators Innovation Foundation Corporate spin-offs Other10/30/2013Further financing optionsVCsExperience Involvement Investment(Super)angelsIndustrial investors Organic growth, other 5. 5Key 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 Finland10/30/2013 6. 6Program 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 2012. 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) The Vigo Program, Mid-Term Evaluation, MEE report 4/201310/30/2013 7. 7Vigo 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.10/30/2013 8. 8Vigo Accelerators1/2 Cleantech Investing in clean futureICT, applications, media Finnish innovations to Asian marketsDigital East Europe Its a shorter journey when you have a paying customerICT, media Building businesses investors would love to ownDigital media, analytics, commerce We produce new business 10/30/2013 9. 9Vigo Accelerators2/2 Health, web, games, advanced tech Co-creating category leadersNewenturesClean, energy, ICT Inventions with good intentionsFashion, design, lifestyle,Helping to establish fashion and design brandsOnline services Turning ideas into innovationsB2B and B2B2C ICT Looking for the next big thing10/30/2013 10. 10How Does Vigo work? Company applies directly to the accelerator of its choice.Acceptance is based upon evaluation of the business idea, team and suitability of the company for the program.The accelerator invests time and money and becomes a shareholder in the company1 2 3 . . . The acceleration period lasts 18 to 24 months The accelerator managers take a hands-on role in operations and biz development4 .Fast Growth200 The accelerators main revenue model is based on the growth in the companys Descriptio 9 nvalue at the point of exit. Monthly fees may also be included in the model. The companies are able to utilize Tekess and Finnveras funding (grants, loans and investments). Total funding package (private and public) for the Acceleration Period varies between 1 to 2 million euros. 10/30/2013 11. 11Great Start-ups in Portfolios!10/30/2013Total portfolio 75 companies (30.6.2013)! 12. 12World Class Investors and VCs: MHS CapitalAMBIENT SOUND INVESTMENTSJuuranto Invest Troll Capital Kasvurahastojen Rahasto 10/30/2013 13. 13Angel Investors10/30/2013 14. 14Esther DysonEsther Dyson is an active angel investor in a variety of start-ups, for-profit and otherwise, around the world. She also operates as the Internets 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 2004.10/30/2013 15. 15Cumulative funding, MPrivate and Public Funding in Target Companies 200 180 160 140 120 100Total private Total public Grand total80 6040 20 0 23 months 29 months 35 months 41 months 47 months By By By By By 30.6.2011 31.12.2011 30.6.2012 31.12.2012 30.6.2013 10/30/2013 16. 16Distribution of Cumulative Funding in Target Companies By 31.12.2012 Totally 135,4 M Finnvera 6%Tekes R&D 16 % Tekes NIY 19 %10/30/2013Accelerators own 5%By 30.6.2013 Totally 172,3 MTekes R&D 13 %Finnvera 5%Accelerators own 6%Domestic private 20 % Foreign private 34 %Domestic private 24 %Tekes NIY 16 % Foreign private 36 % 17. 17Growth of Funding (%) Between 1July12 and 30June13 by Source 140%120% 100% 80% 60% 40% 20% 00% Accelerators own30/10/13Domestic privateForeign privateTekes NIYTekes R&DFinnvera 18. 18Summary of Cumulative Results by 30June 2013 Total cumulative funding in target companies was 172 M, 66% from private and 34% from public sources. Accelerators have invested 9 M in three years. Foreign private investments were 62 M representing 36 % of total cumulative funding. Domestic private investments were 42 M (24% of total) Tekes NIY funding was 28 and R&D about 23 m. Finnvera VC investments were 9 M. Acceleration agreement with 88 companies, 13 are out (exit, termination etc.). Total portfolio 75 companies, 57 in active acceleration, 18 through it and in investment portfolio. 10/30/2013 19. 19Whats in It for Me? For the accelerators: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 growthCustomers, contacts and further financing For the community >> Accelerated growth, increasing value10/30/2013Significant public leverage in target company financing Financial returns with successful exits Rewarding and challenging career optionsVigo Accelarator ProgramJobs and tax-payers Export income Increasing knowledge capital Wealth and prosperity 20. 20If 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 Finlandteaming-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!10/30/2013 21. Thank You! www.vigo.fi seppo.ruotsalainen@profict.fi marit.tuominen@profict.fi