Vigo presentation 15/04/2015
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Vigo Venture Accelerators Driving Fast Growth of High Potential Startups
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Transcript of Vigo presentation 15/04/2015
Vigo Venture Accelerators Driving Fast Growth of High Potential Startups
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
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 a Clean Future”
ICT, Media ”Building Businesses Investors Would Love to
own”
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ICT ”Focusing on Innovative ICT and Asia”
Digital East Europe ” It’s a shorter journey when you have a paying
customer”
Enterprise SaaS, Education Software and
Consumer Internet Apps “International sales-focused Acelerator for
Innovative Software Companies”
Vigo Accelerators 2/2
Fashion, design, lifestyle ”Helping to establish fashion and design brands”
,
Online services and B2B services ”Accelerating international growth”
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”
Media Analytics, Commerce, Learning “We produce New Business”
How Does Vigo work?
200
9
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
Descriptio
n
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 over 100 companies! 30/10/2014
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Exits
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Protogeo/ Moves
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
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Private and Public Funding in
Target Companies C
um
ula
tive
fundin
g,
M€
0,0 €
50,0 €
100,0 €
150,0 €
200,0 €
250,0 €
300,0 €
350,0 €
400,0 €
By 31.12.2011 By 31.12.2012 By 31.12.2013 By 31.12.2014
Total private
Total public
Grand total
Distribution of Cumulative Funding
in Target Companies
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Accelerators own 4 %
Foreign private 56 %
Domestic without
accelerators 16 %
Tekes NIY 10 %
Tekes R&D 9 %
Finnvera direct 4 %
TeSi 1 %
By 31.12.2013 Totally 288 M€
Accelerators own 4 %
Foreign private 53 %
Domestic without
accelerators 17 %
Tekes NIY 11 %
Tekes R&D 10 %
Finnvera direct 4 %
TeSi 1 %
By 31.12.2014 Totally 354 M€
Performance Summary
• Funding raised in target companies (cumulative)
– Private funding 261 M€, 74 %
– Private foreign funding 187 M€, 53%
– Public funding 93 M€, 26%
– Tekes 74 M€ (21%), Finnvera 14,5 M€ (4%), TeSi 4 M€ (1%)
– Total funding 354 M€,
– Public funding leverage factor 2,8
• Total cumulative take-up 142 target companies (14 accelerators, incl.
LOTS, FPI, )
• Current investment and service portfolios include 100 companies
• In active acceleration 62 companies
• First round of accelerators (those selected in 2009) have raised 92 %
of total cumulative funding, 84% during the period (2H15)
• Service portfolios 31/35 (“first 4” vs. “5 to 11” accelerators)
• Investment portfolios 26/12 (“first 4” vs. “5 to 11”)
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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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Vigo Accelarator Program
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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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