Nordic Science Investments – Commercial success stories out of university innovations

Why?

Universities in Finland, as well as in other Nordic and Baltic countries, are constantly creating world-class innovations that can solve even major societal problems and save humankind. However, research-based deep technologies face many common challenges when it comes to initial commercialisation. Many innovations are not commercialised simply because the paths of researchers, financers and the builders of success do not intersect. This known financing bottleneck is now being addressed by Nordic Science Investments, a new kind of venture capital firm.

NSI’s first fund is also the first in the Nordic countries to focus on the very early-stage business operations of university spinouts. NSI operates in the science and startup ecosystem to help university research teams convert their inventions into commercial success stories.

What and how?

Nordic Science Investments pro-actively screens the commercial potential of research teams’ inventions in Nordic and Baltic universities in collaboration with the universities themselves. NSI does this at an earlier stage than other VC funds focusing on university innovations. In addition to pre-seed growth financing, NSI offers university research teams concrete help in founding a startup company, building a team, and finding a suitable founding-stage CEO to launch their business operations.

The experience, networks and international relationships of NSI’s founders open the way to important international connections for newly established companies. NSI invests in seed stage companies with success potential and can also participate in Series A and B. The fund invests at most 50 per cent of its invested capital outside of Finland, in Baltic and Nordic countries.

Growth and internationalisation

Nordic Science Investments announced its first fund with a target size of EUR 80 million at its first closing in March 2024, and has since made eight investments from it. The fund has invested in, for example, Kasvu Therapeutics – a company based on the University of Helsinki’s medical research that develops pharmaceutical enhancers of neuroplasticity. The international potential of these medicines is huge because they can be used to treat numerous mental disorders.

The rapid success of the first fund indicates a clear demand for the early-stage growth financing of innovations and the ability to launch spinouts. NSI’s goal addresses this need: to establish new funds that finance the commercialisation of innovations conceived in universities and to transform research teams into trusted partners.

Tesi’s role

Tesi invested in the initial round because it sees NSI addressing a known financing bottleneck. Tesi also believes NSI has the potential to attract new international investors who have previously overlooked research-based innovations in the Nordic region, including those from Finnish universities.

For Tesi, it is important to support the commercialisation of innovations and research, especially because the financing of Finnish deep tech startups has deteriorated, and new companies are not being established at the same pace as before*. Nordic Science Investments brings significant new capital and expertise to support Finland’s science- and research-based companies. It may also bring new international investors to Finland and the Nordic countries.

General information

Nordic Science Investments is the first Nordic VC fund dedicated to university spinouts and is led by experts in transferring technology from top universities. The fund focuses its investments on unlocking the potential of research-generated innovations. NSI’s founders are: Jari Strandman, who has commercialised innovations from the University of Helsinki and from Oxford University; Alexandra Gylfe, Ph.D, a life science researcher; early-stage technology investor Matti Hautsalo; and investment banker Anssi Uimonen, who is also in charge of NSI’s fundraising. All four have strong expertise in academic research, technology transfer and investment, as well as extensive and influential international networks within science-focused investment communities. Fundraising for NSI’s first fund will continue until Q1/2025.