Tekes - building growth ecosystem Life Science

Jukka Häyrynen, Exec Director, Startup companies

Tekes provides funding

to develop innovationsthat create growth and new businesses

for companies registered in Finland

Tekes Funding for Companies

▪Tekes funding for companies 2013 350M€ ▪Start-ups (<6 yrs) 135M€

Young Innovative Growth Companies

45 M€

Procative programmes: Start-ups, SME’s, corporations &

research institutes together

Tekes funding is non diluting No equity, no collateral

SME’s

Corporations

Start-ups in Tekes funding

START-UPS ▪ Fast funding decisions for fast companies

▪ Try quick, fail quick ▪ Spin offs from large companies ▪ Tech transfer from research Funding for fast growing young companies ▪ Funding for young innovative growth companies YIC ▪ Vigo accelerators SME’s over 6 yrs ▪ R&D funding

Tekes funding to start-ups

0

35

70

105

140

03 04 05 06 07 08 09 10 11 12

Million euros

▪Revolving annual volume, start-ups ▪130M€ ($180M) ▪600 projects

Tekes funding for start-ups

R&D project funding

Planning for international growth

GO / NO GO

Funding for Young Innovative Companies

Vigo Accelerators (10 private companies)

Tekes investments in start-up venture funds (starts in 7.2014)

GO / NO GO

• Grants and loans • No collateral • Milestones

DM 1231571

Superior growth from YIC

Companies say: ▪The impact of Tekes financing was

particularly positive on: ▪business planning, building international sales,

strategy, and management = FOCUS ▪ revenue growth - local to global ▪credibility in fund raising

▪Tekes has financed 198 companies with a total of € 127 million in 2007-2013

Source: The Evidence Network, Canada

01-2014

Combination of • selection criteria (advisory VC panel) • coaching • tranches & milestones • funding

We want to find teams that build companies with

an unfair advantage

Building blocks of blooming new business ecosystem

• Rising valuations and successfull exits have brought Finnish startups on international investors’ radar.

• Exits too early?

Amount of VC investments is finally rising

M€

Incresing high-quality deal flow in many industries:

Gaming

HealthTech

E-commerce

Software and Enterprise solutions

CleanTech

DM

Tekes’ initiatives with life science

Tekes Programs ▪BioIT 2012-2014

• The programme will run for two years and has a budget of slightly more than EUR 10 million, with Tekes providing EUR 6.5 million of the total. ▪BioRefine – New Biomass Products 2007–2012

• The BioRefine – New Biomass Products programme developed business related to new value-adding products or new process or business concepts that utilise biomass in a variety of forms, as well as related technologies, equipment production and services. ▪New program

03-2013

DM

Tekes Customer Examples

▪Mendor ▪Mendor Discreet is an all-in-one blood glucose meter for diabetes care.

▪Oncos Therapeutics ▪Oncos Therapeutics has developed a novel immunotherapy platform

based on engineered oncolytic viruses armed with potent immune-stimulating transgenes.

▪Ginolis ▪Ginolis provides an innovative one-stop solution for the development and

manufacturing of in vitro diagnostic (IVD) disposable products.

03-2013

Young innovative companies: sectors 2013

Digital Media, Games and B-to-C SoftwareB-to-B Software Solutions and ServicesLife Sciences, Med Tech and WellbeingClean Tech, Energy and Industrial SolutionsConsumer Products and Services

DM

Tekes Venture Capital

▪ Investments in funds investing in seed and start-up companies ▪To catalyze the early stage vc industry ▪More intelligent capital to start-up companies ▪ New venture teams ▪To motivate private investors to invest in start-ups

▪Asymmetry ▪ SBIC of SBA (US) ▪ Business Bank (UK)

▪Commitments $30M annually ▪Min 50% private capital ▪Tekes Venture Capital is a company independent of Tekes decision making

03-2013

Tekes shares the risks of growth and renewal

Please contact us! www.tekes.fi/test

www.tekes.fi

Innovation Mill programme

▪Unused ideas from big corporations

▪Business ideas are based on work done in the corprations

▪Either new start-up or transfer to existing company

▪Corporation give the startup the parallel rights to free utilization of the idea ▪Tekes may give a grant for

promising startups

▪Tekes initial funding to spin offs of 6M€ since 2009 ▪Additional funding to

companies after the initial project amounts to 16 m€.

Results

• 98 companies, of these

• 78 startups

• 550 new jobs

• 15 m€ private funding