Both domestic and international venture capitalists are involved in the EUR 6.8 billion investment figure. Of the total, EUR 1.9 billion is venture capital investments in startups and EUR 4.9 billion are buyout investments in more established growth companies. 61% of all investments, or EUR 4.1 billion, were made by foreign private equity investors. A total of 800 Finnish startup and growth companies received capital and capital investments.
In addition to the Helsinki metropolitan area, significant capital investments were made in companies located in other major Finnish cities, such as Oulu and Tampere. In comparison, the target companies of buyout investors are more evenly distributed throughout Finland.
The largest capital investments were made in the Uusimaa metropolitan area: the region’s startups raised a total of EUR 1.5 billion over the past five years. After Uusimaa, startup companies in Northern Ostrobothnia and Pirkanmaa raised the most capital investments. Start-ups operating in Northern Ostrobothnia raised EUR 138 million in growth funding in five years, compared to EUR 90 million in Pirkanmaa.
Uusimaa also rose to first place in buyout investments. In 2017–2021, Finnish and foreign investors invested approximately EUR 3.4 billion in well-established growth companies in Uusimaa.
“The role of venture capital and venture capitalists as drivers of corporate growth in Finland has been strengthening year by year. The full implementation of digitalisation, the acceleration of the green transition and generational growth will increase the demand for active ownership by venture capital and venture capitalists,” he said. Pia SantavirtaPresident of the Finnish Venture Capital Association (FVCA).
We need a long-term policy that supports growth and entrepreneurship
Economic growth is built by innovative technology companies and medium-sized companies that are actively seeking growth. The growth of these companies is often driven by venture capital and venture capitalists.
The parliamentary elections are approaching, and we hope that the decision-makers will share our view: we want Finland to be the best place for entrepreneurs, investors and top experts.
The building blocks for growth are growth-minded entrepreneurs, a diverse set of experts and innovations that form the basis for new businesses. Once these pieces are in place, growth can be accelerated in the following ways:
Well-functioning regulation for companies and investors
The growth of the company must be supported by the surrounding regulatory environment. It is important that policies to support growth and entrepreneurship are monitored across the board. Regulatory and tax environments must be consistent and predictable. Regulatory or fiscal reform must carefully assess the impact of these changes on businesses and their ability to grow, finance and employ. This will help ensure that Finland remains an attractive and competitive country for entrepreneurs, professionals and investors.
Diverse fund investor base
In order to strengthen domestic ownership and secure access to finance for growth companies, our financial ecosystem must rise to an international level. This means that barriers to fundraising for Finnish private equity and private equity funds must be removed and the funds must have equal opportunities to attract investment to Finland. The Finnish capital and venture capital industry must be constantly developed to keep pace with the rest of Europe.
Sustainable growth at every stage of the business
More new startups
Our goal is for Finland to be among the top countries in Europe in terms of the number of new startup companies. We are currently ranked sixth, so there is still work to be done. More attention needs to be paid to entrepreneurship, innovation and the commercialization of innovation.
More groundbreaking unicorns
The Finnish startup ecosystem has set a goal: by 2030, one hundred start-ups with a turnover of more than one hundred million. At their best, new innovations and great teams can grow into highly successful Anchor Companies, which in turn form competence clusters around them. By the summer of 2022, eleven unicorns have been built in Finland, ie more than a billion euros, and we expect more of them.
We hope that the whole of Finland will grow, develop and employ as many professionals as possible. There are many companies representing traditional industries with the potential for faster growth. The growth of these companies must be accelerated. In addition to equity, private equity investors leverage their growth expertise to fully support their portfolio companies on their growth path.
Our goal is for Finland’s medium-level (or non-standard) business ecosystem to grow and strengthen. This requires entrepreneurial decision-making and experienced capital management.
Source: Finnish Venture Capital Association
Source: The Nordic Page