Business Finland Venture Capital

Develop Finland’s venture capital market

International
  • Program Type
    International
  • Industry Focus
    Companies in Finland

The purpose of Business Finland Venture Capital Ltd is to promote companies in their early stages of development by investing in venture capital funds together with private investors. Private management companies are responsible for the investments of venture capital funds which invest in companies in Finland in their early stages of development.

New capital for startups in cooperation with private investors


Business Finland Venture Capital Ltd invests in venture capital funds which invest in companies in their early stages of development. The purpose of the company is to develop Finland’s venture capital market. The market is developed in cooperation with private investors. At least half of the capital in our target funds is raised by private investors. Through the provision of venture capital, early stage companies can achieve their development and growth targets.

Our fund managers shall have verifiable track record of successful commercial operations or investments. In addition to investing, the fund managers, can bring along valuable know-how and networks that could take early stage companies to their international breakthrough. The principles of responsible investment are taken into account in our investment activities.
Business Finland Venture Capital Ltd is a state-owned company; ownership steering is the responsibility of Business Finland.
Every year Finnish government allocates capital to Business Finland Venture Capital Ltd from the state budget.

Investing principles

Business Finland Venture Capital Ltd invests in venture capital funds which invest in Finnish startups. We estimate two to four investments annually. The key managers of our target funds have solid industry expertise, reliable entrepreneurial or investment background and proof of successful commercial operations or investments. The fund management company and their key managers must have realistic prospects to raise enough private capital for the fund.

The share of Business Finland Venture Capital Ltd in the fund:

  • There is no maximum size of our target fund, however the management company should be able to justify fund size with e.g. its investment strategy and management company’s experience
  • Our investment is considerable in relation to the total size of a fund, however it does not exceed 50 per cent of total commitments. The size of our commitment is decided on a case-by-case basis.
  • Our investment may include state aid. We can accept asymmetrical profit distribution in favour of private investors. Asymmetrical distribution of profit increases the expected returns of private investors, should the fund be successful.
  • What we expect from applicants:

  • Key managers of the fund’s management company have proof of successful commercial operations or investments and are experienced in the fields the fund’s investees are operating. Also, the management company has adequate competence and experience in managing of the investments.
  • The fund applies a credible and plausible investment policy to increase the value of target companies and generate investors a return worthy of the risk taken. Target companies are early stage companies in their seed or start-up phases at the time of initial investment.
  • The management company is capable of raising capital from private sources such as institutional investors and companies investing in private equity.
  • The key managers of the management company are willing and able to operate with long term commitment and develop their activities as equity investors. The general manager, the management company, or their shareholders (key managers) should also make an investment to the fund.
  • The fund applies the principles of responsible investment in its investment activities.
  • How to apply for funding:

  • Before applying, applicants should get in touch with the staff of Business Finland Venture Capital Ltd and have their business idea examined. It is an iterative process, keeping contact until idea is ‘application ready’. We may start light due diligence, including referencing and consideration of track record and experience of the team.
  • We recommend applicants to familiarize themselves with Business Finland Venture Capital Ltd risk finance program and Investment Policy (in Finnish) and get to know the model limited partnership agreement and its key terms before applying.
  • In matters related to AIFM licensing or registration we request potential applicants to get in touch with the Finnish Financial Supervision Authority well ahead of application.
  • Check how to fully and completely fill in the application.
  • EAF Finland – an investment partner for experienced Business Angels


    EAF Finland co-invests with selected experienced Business Angels into innovative Finnish early stage SMEs. The total size of the Fund is EUR 30 million, and it has two investors, European Investment Fund EIF and Business Finland Venture Capital Ltd. The Fund is advised by EIF and selection of Business Angels is in its responsibility.

    The European Investment Fund publishes the names of the Angels participating in the program on their website. Companies may contact selected Business Angels directly to seek an investment.

    Future Phases

    Check out an overview of each competition phase below - complete rules for each phase will be released as the competition progresses.

    Documents

    Investments in best funds

    Let’s Get Started.

    To apply or join the program, please submit an application.