The first half of 2013 was positive for the venture capital and private equity industry despite the macroeconomic downswing. Fundraising and exits by European management companies picked up pace, reaching their highest levels since 2011. In Finland, FVCA’s statistics show venture capital investments totalling MEUR 62 in the first half of 2013 – the most active six-month period in over four years. Numerous profitable exits from venture capital backed companies were another positive feature during the spring.
Finnish Industry Investment develops the venture capital and private equity market in Finland. In the first half of 2013 Finnish Industry Investment, including FoF Growth, made new commitments totalling MEUR 32 in two Finnish and two Nordic venture capital and private equity funds. Finnish Industry Investment also makes direct investments, together with private investors, in Finnish companies in growth and internationalisation phases. In the first half of 2013 Finnish Industry Investment made direct investments amounting to some MEUR 15 in 12 growth companies. Finnish Industry Investment also played a role in channelling altogether four times the amount of capital that it invested in them itself into these portfolio companies.
In spring 2013 Finnish Industry Investment conducted an assessment of the economic impact of its investments during 2011-2012. At the end of 2012 Finnish Industry Investment’s Finnish portfolio companies employed some 50,000 people and their aggregated net turnover amounted to approx. EUR 8.5 billion. The number of Finnish Industry Investment’s portfolio companies’ employees grew in relative terms four times as much, and aggregate net turnover almost twice as much, as those of Finland’s total stock of companies. In 2011 and 2012 seven times the amount of capital was channelled into Finnish Industry Investment’s portfolio companies compared to its own investment in them. The company actively influenced the creation of two new players in the venture capital market in Finland.
“Venture capital and private equity investment can be regarded as a tool for bringing about restructuring, of both individual companies and whole industrial sectors. Numerous studies show that active ownership by venture capitalists and private equity investors has helped their portfolio companies cope better than the comparison groups in those studies, in terms of better business management and the creation of growth. Over the next six months Finnish Industry Investment will focus its activities on starting FoF Growth II together with institutional investors,” says Jouni Hakala, Director at Finnish Industry Investment Ltd.
For more information:
Finnish Industry Investment Ltd’s interim review H1/2013
Jouni Hakala, Director, Finnish Industry Investment Ltd, tel: +358 50 400 1767, email: jouni.hakala@industryinvestment.com
Tomi Riihiranta, Senior Analyst, Finnish Industry Investment Ltd, tel: +358 50 593 7576, email: tomi.riihiranta@industryinvestment.com
Finnish Industry Investment Ltd is a government-owned investment company that promotes Finnish business, employment and economic growth through venture capital and private equity investments. Finnish Industry Investment invests in companies both directly and through private equity funds, together with and on the same terms as private investors. The investments of Finnish Industry Investment amount to 720 million euros. The company currently invests, directly and through funds, in altogether 510 companies that together employ some 50,000 people. www.industryinvestment.com