Investment process
We make minority investments in Finnish companies together with and on the same terms as other investors. As a rule, Tesi does not take on the role of a lead investor. We share financial risk, accelerate the growth and international expansion of our portfolio companies and believe in active ownership.
Screening
In the first meetings with a company we establish whether we are the right investor for you and whether your company fits into our investment focus.
We would like to learn more about your growth plans and other investors, and ESG related matters.
Discussions and evaluation
As a rule, Tesi is not a lead investor. Our co-investors are Finnish and international venture capital and private equity funds, pension funds, industrial investors and private investors. We can also help your company find a suitable investor syndicate.
Together with co-investors, we:
- get to know your management team and Board of Directors
- evaluate the company’s strategy, technology, financial situation, and market potential
- discuss the investment round in question and possible follow-on financing needs
- evaluate aspects related to sustainability
Due Diligence
We form a common understanding of the company’s value and define the investors’ holdings in the company. We agree on due diligence procedures and other contractual conditions, as well as on financing and exit plans. We also conduct an ESG due diligence (ESG-DD) for all our potential investment targets.
Investment decision
Tesi’s Board of Directors meets monthly, among other matters, to make investment decisions, while smaller investments can be approved by the Management Team. We sign the agreements relating to the investment. We jointly agree how information about the investment will be disclosed. Our communications expertise is also at your disposal.
Active ownership
We are your sparring partner in growth related issues:
- Implementing the growth plan and sharpening the strategic focus
- Recruitment of key personnel
- Planning of any follow-on investment
- Ownership arrangement considerations
- ESG related aspects
Typically, we take on the role of a board observer in our portfolio companies. In most cases, our actual board seat is held by an industry expert with a strong understanding of the company’s business. The company’s CEO and management are in charge of all operative functions.
Exit
Alongside other venture capital and private equity investors, we are a temporary owner. We exit investments together with other owners within a targeted schedule. We make investments on market terms and we seek a return from all investments.
Typical exit options are:
- Trade sale to e.g. an industrial buyer
- Refinancing
- Listing on a stock exchange (IPO)