The Vigo Programme

What is Vigo?

• Vigo is a new type of acceleration programme designed to complement the internationally acclaimed Finnish innovation ecosystem.

• The Vigo Programme assigns selected independent accelerator companies to provide drive, experience and financing opportunities for high-potential Finnish start-ups.

2

Key objectives

• The key objectives of the Vigo Programme 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

3

Programme Governance and Execution

• The Ministry of Employment and The Economy (TEM) decision to start The Vigo Programme 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 coordinates the programme and Profict Partners Oy manages the execution of the program.

*Finnish Funding Agency for Technology and Innovation**Currently Finnvera VC (The VC part of Finnvera investing public funds in early stage companies)

8. huhtikuuta 2023

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.

5

Vigo Accelerators

• 43 high profile teams applied for Vigo accelerator status at the first round 2009

• Six highly respected accelerators were selected and in operation

1. Cleantech invest (clean tech ventures)

2. Food Process Innovations  (innovative human nutrition related businesses)

3. KoppiCatch (ict, mobile)

4. Lifeline Ventures (sciences and telecommunications)

5. Lots (media technology)

6. Veturi Venture Accelerator (ict)

08/04/2023

6

How does Vigo work?

7

• 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).

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

Great case stories! (1/2)

• Valkee – http://www.valkee.com ; Light relief for SAD

sufferers

• Supercell – http://www.supercell.net/ – 12 M USD in May 2011

• GreyArea – http://www.greyarealabs.com – LA-MMORPG, 1,9 m€ in Feb 2011

• Microtask – http://www.microtask.com ; growdsourcing, 1 m€

in Aug2010

• Happy or Not– http://www.happy-or-not.com

• Zokem – http://www.zokem.com ; mobile analytics

8

Great case stories! (2/2)

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

• Savosolar – http://www.savo-solar.fi solar collectors

• Foodie– http://www.foodie.fm eat smart

• Senseg– http://www.senseg.fi haptic displays

• Enersize – http://www.enersize.com energy savings (CAS)

• Ruisvoima – http://www.ruisvoima.fi healthy snacks

• Total portfolio of 33 companies (end of April 2011)

9

10

International investors

MHS Capital

AMBIENT SOUND INVESTMENTS

11

Angel Investors

12

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

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• Wealth and prosperity

Excellent Results After the First 18 Months

• Currently 6 accelerators (ict, web, health, media, cleantech, food) with totally 20 + managers working hands-on with start-ups.

• 33 start-ups in portfolio (forecast 50+ by end of 2011).• Good deal flows and active process in accelerators to grow

portfolio and develop the companies.• More than 50 m€ raised, 2/3 private (60% foreign)• First international A-rounds 2010, biggest so far 7 Meuros.• Several hundred new jobs created (direct and in-direct).

14

April 8, 2023

April 8, 2023

15

14 months 19 months (22 months)By 30.9. 2010 By 28.2.2011 By 31.5.2011

 0.00 €

 10.00 €

 20.00 €

 30.00 €

 40.00 €

 50.00 €

 60.00 €

Public and Private Funding in Vigo-programme

Cumulative, M€

Total privateTotal publicGrand total

Cu

mu

lativ

e f

un

din

g,

M€

April 8, 2023

16

4% 14%

37%19%

19% 7%

Cumulative Funding by Source by 31.5.2011(Totally 54 M€, Estimated)

Accelerators own Domestic non-accelerators Foreign private Tekes NIYTekes R&D Finnvera

Tekes funding 38%Finnvera investments 7%

Private investments 55%

Future• Short term

– New application round for accelerators announced, total number of accelerators 8 to 15 by end of 2011

– Accelerator funds to bridge the gap between public early funding and A-round

>> more A-rounds >> more growth companies

>> first funds 1H2011– Connect and enhance deal flow sources– Build and strengthen international network– Create awareness and visibility for start-ups, accelerators and the

program

• Long term– Renew and invigorate early stage financing– Attract new players (VC’s, accelerators) to Finland – Strengthen international co-operation (visits, events, pitching, financing,

exits)

April 8, 2023

17

Thank you!

For more information:

www.vigo.fi

18