We believe that Finnish companies are in a key position when global issues, such as ones to do with clean economy and climate, are addressed sustainably. Tesi wants to finance and develop these solutions together with other investors as an owner.
Investment focus
Venture capital
- Early-stage venture capital investments are suitable for companies with strong potential for international growth. These include technology companies with scalable business models and high growth ambitions.
- We enhance the later-stage venture capital market by participating as a minority investor in syndicates for Series A to C funding rounds, ranging from approximately EUR 5 million to tens of millions.
- Our investment share can be up to 50% of the funding round, typically around 20% of the venture capital round.
- Our individual investments usually range from EUR 2 to 15 million. Larger direct investments in Finland’s best scale up companies are also possible. Investments are always made in collaboration with private professional investors, primarily domestic and international venture capital funds.
- When making investments, we emphasize proven international growth, a capable syndicate, a strong team, operational sustainability, and a commitment to development.
- Our investment focus areas include deep technology, clean transition, and health technology. Our themes evolve with the market, so we welcome inquiries from startups or growth companies whose business may not directly align with these themes.
Growth equity
- We make minority investments in growth companies that are determined to achieve sustainable growth and internationalization.
- Our target companies may require capital for various needs such as international expansion, product and service development, investments, balance sheet strengthening, corporate and industry restructuring, ownership arrangements, or enhancing their operational sustainability.
- When evaluating investments, we emphasize a credible growth plan, skilled operational management, proven profitable and growing business, and the necessary expertise in the board and co-investors to execute the value creation plan.
- Our target companies typically have a turnover of EUR 15 to 300 million, and our investments usually range from EUR 5 to 20 million.
- Executing a growth strategy generally requires long-term risk-taking and risk-sharing among multiple owners. Our co-investors include domestic and international private equity firms, pension funds, industrial investors, and private investors.
- Our investment focus areas are deep technology, clean transition, and health technology, along with other emerging themes as dictated by market needs.
Our growth and industrial investments team
See our growth equity portfolio
New industrial-scale projects and project financing
- We finance new industrial-scale projects in Finland. Our goal is to build new industries in Finland that utilize clean electricity and promote a clean transition.
- Our investments aim to significantly leverage private capital alongside Tesin’s investments of EUR 5 to 20 million euros. Additionally, we can make larger individual investments for follow-on funding of the best international industrial-scale projects.
- Financing industrial-scale projects typically requires long-term risk-taking and risk-sharing among multiple owners and financiers. Our co-investors include domestic and international private equity firms, pension funds, industrial investors, banks, private investors, and other public sector entities like Business Finland and Finnvera. In industrial-scale projects, we pay special attention to the successful implementation of the project financing model and a broad network of co-investors.
Industrial investments
- We also finance significant industrial companies in Finland and their new plant, equipment, and expansion investments. Financing can also support the creation of larger and internationally stronger business entities. In these cases, our target companies typically aim for a turnover exceeding EUR 100 million and are experiencing strong international growth. Our investments usually range from EUR 5 to 20 million.
- After the financing arrangement, we participate with our investment partners in developing the business through board and strategic work. We also assist in preparing for subsequent funding rounds.
Our growth and industrial investments team
See our industrial investments portfolio
Tesi's investment themes
When selecting our investments, we prioritise the themes outlined in our strategy. We believe that deep tech, the clean economy and health & life sciences are currently the growth sectors of the future. That means we can build sustainable growth in these sectors and form clusters of expertise around them that generate high added value and new growth in Finland.
EU’s market-based financing mechanisms
Tesi manages two market-based, co-financing programmes created with the European Investment Bank (EIB): the EFSI programme launched in 2018 and the EGF programme launched in 2022. Launched to mitigate the economic difficulties caused by the coronavirus pandemic, the EGF programme is part of the European Guarantee Fund.
Both programmes are EUR 100 million in size, with one-half of their financing coming from the EIB and one-half from Tesi. Investments are always made together, not separately.
