The Vigo Programme

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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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 coordinates the program 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)

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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

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1. Cleantech invest (clean tech ventures)

2. KoppiCatch (ict, mobile analytics)

3. Lifeline Ventures (life sciences,

telecommunications and games)

4. Veturi Venture Accelerator (ict)

How does Vigo work?

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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!

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Total portfolio more than 40 companies !

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International Investors

MHS Capital

AMBIENT SOUND INVESTMENTS

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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

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 20 Months

• Currently 4 accelerators with totally 20 + managers working hands-on with start-ups.

• Total portfolio over 40 high potential start ups assigned in accelerators

• Good deal flows and active process in accelerators to grow portfolio and develop the companies.

• More than 70 m€ raised, 60% private (one third of which is foreign private capital)

• First international A-rounds 2010, biggest so far 7 Meuros.• First exit Zokem was aquired by Arbitron (US) for 11,7 MUSD• Two microfunds raised with more tha 5 m€ commitments.• Several hundred new jobs created (direct and in-direct).

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Public and Private Funding in Target Companies

April 10, 2023

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Cum

ulat

ive

fund

ing,

M€

14 months 19 months 23 months 29 monthsBy 30.9. 2010 By 28.2.2011 By 30.6.2011 By 31.12.2011

 0.00 €

 10.00 €

 20.00 €

 30.00 €

 40.00 €

 50.00 €

 60.00 €

 70.00 €

 80.00 €

 24.20 €

 39.60 €

 57.30 €

 70.70 €

Total private

Total public

Grand total

Funding by Source in Target Companies

April 10, 2023

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Cum

ulat

ive,

M€

14

mo

nth

s

19

mo

nth

s

23

mo

nth

s

29

mo

nth

s

By 30.9. 2010

By 28.2.2011

By 30.6.2011

By 31.12.201

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 0.00 €

 5.00 €

 10.00 €

 15.00 €

 20.00 €

 25.00 €

Accelerators own

Finnvera

Tekes R&D

Domestic private

Tekes NIY

Foreign private

Distribution of Cumulative Funding in Target Companies

April 10, 2023

16

Accelera-tors own5 % Domes-

tic pri-vate18 %

Foreign private34%

Tekes NIY

19 %

Tekes R&D17%

Finnvera7%

By 30.6.2011(Totally 57,3 M€)

Accelera-tors own6 % Domes-

tic pri-vate18%

Foreign private33%

Tekes NIY20%

Tekes R&D15%

Finnvera8%

By 31.12.2011Totally 70,7 M€

Satisfaction with Cooperation between Start-Ups and Vigo Accelerators

Service Quality

Accelerators Competence

Acclerators Availability

Importance of Cooperation

Importance for Financing

1 1.5 2 2.5 3 3.5 4 4.5 5

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

Future

• Enhancements– More accelerators– More startups into portfolios– Accelerator funds– Connect and strengthen deal flows

• Strengthen international network– Create awareness and visibility for start-ups, accelerators and the program

within selected communities– Maintain quality (program, accelerators, target companies, deal flow)– Invite and attract (through results) investors, VC’s and accelerators – Strengthen exchange of information and experience with leading

international programs

• Renew and invigorate early stage financing• Make Helsinki The Accelerator Hub of Europe

April 10, 2023

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Thank you!

For more information:

www.vigo.fi

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