Vigo presentation 31062012
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Transcript of Vigo presentation 31062012
Vigo Venture AcceleratorsDriving Fast Growth of High Potential Start-ups
What is the Vigo Program?
• 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 privatefunding
Vigo Venture Acceleration ProcessFor Potential High Growth Start-ups
Deal flow sources
Experience Involvement
Investment
Universities andResearch Centers
Regional centers and COE’s*
IncubatorsInnovation Foundation
Corporate spin-offsOther
Further financingoptions
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 the TEM in August 2009.
• Tekes is responsible for program implementation and based on Tekes’ mandate, the program is coordinated by Profict Partners ltd.
• An independent evaluation of the Program was made in the fall 2012ˆ.• The Guiding Principles were renewed and the Steering Group re-
nominated from March 1st, 2013.
*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”
Health, web, games, advanced tech”Co-creating category leaders”
Clean, energy, ICT”Inventions with good intentions”
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Vigo Accelerators 2/2
Fashion, design, lifestyle”Helping to establish fashion and design brands”
Life Science, health”Investors in clinical development”
,
Online services”Turning ideas into innovations”
B2B and B2B2C ICT”Looking for the next big thing”
ICT, applications, media”Finnish innovations to Asian markets”
UKKO Partners
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How does Vigo work?
2009
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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 case stories!
Total portfolio 67 companies (30.12.2012)!04/08/2023
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Investors and VC’s:
MHS Capital
AMBIENT SOUND INVESTMENTS
Juuranto Invest
Troll CapitalKasvurahastojen 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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Private and Public Funding in Target Companies
Cum
ulat
ive
fund
ing,
M€
19 months 23 months 29 months 35 months 41 monthsBy
28.2.2011By
30.6.2011By
31.12.2011By
30.6.2012By
31.12.2012
000 €
020 €
040 €
060 €
080 €
100 €
120 €
140 €
160 €
Total private
Total public
Grand total
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Distribution of Cumulative Funding in Target Companies
By 31.12.2011Totally 70,7 M€
By 30.6.2012(Totally 103,0 M€)
Accelera-tors own6% Domes-
tic pri-vate18%
Foreign private33%
Tekes NIY20%
Tekes R&D15%
Finnvera8%
By 31.12.2011Totally 70,7 M€
Accelera-tors own5% Domes-
tic pri-vate20%
Foreign private34%
Tekes NIY19%
Tekes R&D16%
Finnvera6%
By 31.12.2012Totally 135,4 M€
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Results Summary (by 31Dec 2012), 1/2
• Total cumulative funding in target companies was 135,4 M€, 60%
from private and 40% from public sources.
• Accelerators have invested 7,4 M€ in three years.
• Foreign private investments were 46,3 M€ representing 34 %
of total cumulative funding.
• Domestic private investments were 27,4 M€ (20% of total)
• Tekes NIY was 25,2 and R&D about 21,0 m€ and Finnvera VC
8,1 M€.
• Four exits by the end of 2012.
• Commitments into Accelerator Funds totally about 27 M€.
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• Total service portfolio is 58 named companies (as reported by
the accelerators). Total service and investment portfolio is 67
companies.
• Totally there were 580 employees in target companies
(increase by 350 employees since signing of contract).
• Total revenue of target companies was 95 M€ (est).
• Outlook: Accelerators estimate portfolio sizes to grow clearly
during 2013.
Results Summary (by 31Dec 2012), 2/2
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Satisfaction with Cooperation between Start-Ups and Vigo Accelerators
Service Quality
Accelerators Competence
Acclerators Availability
Importance of Cooperation
Importance for Financing
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4.16
4.47
3.63
3.68
4.11
Accelerators Impact in Key Business Areas of Start-Ups
Sales/Customer Acquisition
Marketing
Product Development
Financing
Internationalization
HR Management
Business Strategy
1 1.5 2 2.5 3 3.5 4 4.5 5
3.16
3.26
2.95
4.26
3.79
3.11
3.95
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]@profict.fi