The Vigo Programme

What is Vigo?

• Vigo is a new type of acceleration program designed to

complement the internationally acclaimed Finnish innovation

ecosystem.

• The Vigo Program assigns selected independent accelerator

companies to provide drive, experience and financing

opportunities for high-potential Finnish start-ups.

2

Key objectives

• The key objectives of the Vigo Program are to:

– Motivate the best business developers to help the most

promising start-ups grow into successful companies

– Ensure early stage funding for the target companies,

increase their shareholder value, and make them attractive

targets for venture investors

– Raise significant venture capital investments for continued

expansion of the target companies after the acceleration

stage

– Develop the Finnish venture capital market and bring more

international acceleration and venture capital players into

Finland

3

Program Governance and Execution

• The Ministry of Employment and The Economy (TEM) decided to start

The Vigo Program in March 2009 in cooperation with Tekes* and

Veraventure**.

• A Steering Group representing significant experience and expertise in

the international growth business was nominated by the TEM in August

2009.

• Tekes coordinates the program and Profict Partners Oy manages the

execution of the program.

*Finnish Funding Agency for Technology and Innovation

**Currently Finnvera VC (The VC part of Finnvera investing public funds in

early stage companies)

23/4/12

Vigo Accelerators

• The Vigo Accelerators are private companies

that are run by experienced entrepreneurs.

• The Accelerators offer their proven business

expertise, funding, and extensive contact

networks to the target companies.

• The Accelerators invest both money and time

into the target companies and take on both a

strategic and an operative role in the

companies.

• The Accelerators have been selected from the

best applicants in their respective fields in a

public procurement process.

5

Vigo Accelerators 1/2

6

BioAssetFinland

Cleantech Invest Clean tech ventures

BioAssetFinland Life science, medical molecules

Gorilla Ventures Ict relative solutions

KoppiCatch Ict, mobile analytics

Lifeline Ventures Life sciences,

telecommunications and games

Vigo Accelerators 2/2

7

Royal Majestics Fashion & lifestyle

Newentures ”Radical inventions”, ict,

Vendep Web based businesses and services

Veturi Venture Accelerator b2b ict

How does Vigo work?

8

200

9

1

.

2

.

3

.

4

.

Company

applies directly

to the

accelerator of it’s

choice.

Acceptance is

based upon eva-

luation of the

business idea,

team and sui-

tability of the

company for the

program.

The accelerator

managers take a

hands-on role in

operations and

biz development

Fast

Growth

Descriptio

n

The acceleration period lasts 18 to 24 months

The accelerators’ main revenue model is based on the growth in the

company’s value at the point of exit. Monthly fees may also be

included in the model.

The companies are able to utilize Tekes’s and Finnvera’s funding

(grants, loans and investments).

The accelerator

invests time and

money and

becomes a

shareholder in

the company

Great case stories!

9

Total portfolio more than 40 companies !

International Investors

10

MHS Capital

AMBIENT SOUND INVESTMENTS

Angel Investors

11

12

Esther Dyson is an active angel investor in a

variety of start-ups, for-profit and otherwise,

around the world. She also operates as the

Internet’s court jester, a person of no institutional

importance who somehow manages to speak the truth and to

be heard when and where it matters. She does business as

EDventure, the reclaimed name of the company she owned for

20-odd years before selling it to CNET Networks in 2004.

Esther Dyson

What’s in It for Me?

• For investors: • Professionally qualified

opportunities

• Experienced and committed management teams

• High leverage initial funding (R&D and BD grants& loans)

• For start-up companies: • Business competence

• Experience

• Drive for growth

• Customers, contacts and further financing

>> Accelerated growth, increasing value

• For the accelerators: • Significant public leverage in target

company financing

• Financial returns with successful exits

• Rewarding and challenging career options

• For the community • Jobs and tax-payers

• Wealth and prosperity

Excellent Results After the First 20 Months

• Currently 4 accelerators with totally 20 + managers working

hands-on with start-ups.

• Total portfolio over 40 high potential start ups assigned in

accelerators

• Good deal flows and active process in accelerators to grow

portfolio and develop the companies.

• More than 70 m€ raised, 60% private (one third of which is

foreign private capital)

• First international A-rounds 2010, biggest so far 7 Meuros.

• First exit Zokem was aquired by Arbitron (US) for 11,7 MUSD

• Two microfunds raised with more tha 5 m€ commitments.

• Several hundred new jobs created (direct and in-direct).

14

23 April 2012

Public and Private Funding in

Target Companies

23 April 2012

15

Cum

ula

tive fundin

g,

M€

24,20 €

39,60 €

57,3

70,7 €

0,00 €

10,00 €

20,00 €

30,00 €

40,00 €

50,00 €

60,00 €

70,00 €

80,00 €

14 months 19 months 23 months 29 months

By 30.9. 2010 By 28.2.2011 By 30.6.2011 By 31.12.2011

Total private

Total public

Grand total

Funding by Source in Target Companies

23 April 2012

16

Cum

ula

tive,

M€

0,00 €

5,00 €

10,00 €

15,00 €

20,00 €

25,00 €

14 months 19 months 23 months 29 months

By 30.9.2010

By28.2.2011

By30.6.2011

By31.12.2011

Acceleratorsown

Finnvera

Tekes R&D

Domesticprivate

Tekes NIY

Foreign private

Distribution of Cumulative Funding

in Target Companies

23 April 2012

17

Accelera-tors own

5 % Domestic

private 18 %

Foreign private 34 %

Tekes NIY

19 %

Tekes R&D 17 %

Finnvera 7 %

By 30.6.2011 (Totally 57,3 M€)

Accelera-tors own

6 % Domestic private 18 %

Foreign private 33 %

Tekes NIY 20 %

Tekes R&D 15 %

Finnvera 8 %

By 31.12.2011 Totally 70,7 M€

Satisfaction with Cooperation between

Start-Ups and Vigo Accelerators

4,16

4,47

3,63

3,68

4,11

1 1,5 2 2,5 3 3,5 4 4,5 5

Service Quality

Accelerators Competence

Acclerators Availability

Importance of Cooperation

Importance for Financing

Accelerators Impact in Key

Business Areas of Start-Ups

3,16

3,26

2,95

4,26

3,79

3,11

3,95

1 1,5 2 2,5 3 3,5 4 4,5 5

Sales/Customer Acquisition

Marketing

Product Development

Financing

Internationalization

HR Management

Business Strategy

Future

• Enhancements – More accelerators

– More startups into portfolios

– Accelerator funds

– Connect and strengthen deal flows

• Strengthen international network – Create awareness and visibility for start-ups, accelerators and the program

within selected communities

– Maintain quality (program, accelerators, target companies, deal flow)

– Invite and attract (through results) investors, VC’s and accelerators

– Strengthen exchange of information and experience with leading

international programs

• Renew and invigorate early stage financing

• Make Helsinki The Accelerator Hub of Europe

23 April 2012

20

Thank you!

For more information:

www.vigo.fi

21