FVCA Newsletter – May 2021

Hi everyone,

June 24th, 2021

The holiday season is approaching, but we still have a lot of news to share: It's been a busy year on the Helsinki Stock Exchange and new IPOs are also on the horizon - many of them coming from private-equity-backed companies. In this newsletter, you can read more about the potential listing candidates coming from PE investors' portfolios.

Private equity investors believe in Finnish companies. This is evidenced by the fact that despite the pandemic, the number of growth companies that received a buyout investment remained stable in 2020. In addition to publishing the annual buyout statistics, we recently compiled a study to discover which international investors are the most active players in the Finnish market.

The impact of the industry has also been discussed recently: according to Tesi's return study, the Finnish private equity field is performing well. In addition, Invest Europe's impact study demonstrates private equity’s outsized contribution to European job creation.

We will be publishing our diversity report after the summer holidays and our impact study in the fall, so stay tuned!

In this newsletter you will find:
You can also read about:
Recent News
Potential Listing Candidates
Private equity investors have once again named potential listing candidates from their portfolios. About half of the companies listed on the Helsinki Stock Exchange between 2015–2021 have been private-equity-backed. 2021 has already been a busy IPO year, and many of the new listed companies have come from PE investors' portfolios.

📌 As many as 75% of the new companies listed on Nasdaq Helsinki in 2021 so far have been PE-backed.

📌 Of the new Nasdaq Helsinki Main Market IPOs, Kreate Group and Sitowise have been listed by Intera Partners and Orthex by Sponsor Capital. In addition, Merus Power, listed on First North Growth Market Finland, has been funded by VNT Management and Inventure.

📌 Of the companies with plans to go public, Spinnova has been backed by Maki.vc, while Puuilo is being listed by the international PE investor Adelis Equity Partners and has previously been developed by the Finnish investor Sentica Partners.

Read the list of potential listing candidates here.
The Number of Growth Companies That Received a Buyout Investment Remained Stable During the Pandemic Year
📌 Buyout investors invested €851 million in Finnish growth companies in 2020.

📌 Of the total amount invested, €320 million came from domestic investors and €531 million from foreign investors.

📌 Finnish buyout investors raised a total of €443 million in their funds in 2020. 

📌 New funds were raised by Sponsor Capital, which focuses on majority investments, Bocap, which makes minority investments, and Verso Capital, which invests in spin-offs of large companies.

Read the full press release here.
International Private Equity Investors in Finland – Buyout and Growth
We recently published a report on investments made by international buyout and growth investors in Finnish companies. Read the main points of the study here:

📌 Finnish growth companies have received a total of €6.7 billion in investments from domestic and foreign private equity investors between 2013–2020.

📌 Foreign private equity investors accounted for more than half of the total, i.e., more than €3.6 billion in total. Of the Finnish growth companies that have received a growth or buyout investment, 17% have received an investment from international private equity investors.

📌 Since 2013, 47 international private equity investors have invested in Finnish growth companies. Measured by the number of investments, most investments have come from Sweden, the United States, the United Kingdom, Norway, and Germany.

Read more here.
Tesi’s Survey of Investment Returns 2021: Considerable Returns on the Finnish PE/VC Market
Great news: The survey of returns conducted by Tesi shows that the Finnish venture capital and private equity market is performing well at present. 

📌 The survey results show that market returns for buyout and growth funds have stabilised at a good level, and investment value is being realised at a steady rate. 

📌 The venture capital market is booming and the returns of Finnish venture capital funds have risen to an excellent level in recent years.

Read the whole press release here.
European Venture Capital Statistics: Finnish Startups Attract Twice as Much Funding as Most European Counterparts
According to recent Invest Europe statistics, Finnish startups receive the most venture capital funding in Europe, when the invested amount is examined in relation to gross domestic product. While Finland has already held the top spot for three consecutive years, in the 2020 statistics Finland stands out from the crowd by far.

Here are a few key points:

📌 In the comparison, Finland is 77% ahead of the UK, which holds the second position. Finnish startups received twice as much funding as their Swedish counterparts (in fourth position) when the sizes of the national economies are taken into account.

📌 Finland's development has been continuous - we have been number one for three consecutive years. This year also looks very promising.

📌 Finland’s number one position in the statistics is driven by large investment rounds in later-stage startups, such as Wolt, Oura, and Aiven.

📌 The future of Finnish growth funding looks great as well. The number of Finnish venture capital investors has doubled in the last five years, as sixteen new fund teams have raised their first VC fund.

Read the whole press release here.
Other Industry News
🔎 Finnish Venture Capital Association's new market review has been published. In the review, you can find a summary of current industry statistics and reports, startup and growth company financing and sustainable growth. Check out the review here.
💡 The Invest Europe Private Equity at Work report states that in 2019, businesses benefitting from PE investment employed 10.2m people across Europe. The report also looks at net new jobs created by private-equity-backed companies in Europe. Read more here.
🌎 A recent study by PwC shows that private equity investors are increasingly assessing the impact of ESG drivers on the portfolio companies' value. 91% of respondents say climate risks are a concern, but almost half have not undertaken any work in understanding the climate risk exposure of portfolios. Read more here.
📖 Kotkamills was the winner of this years' Kasvunrakentaja ("Growth Builder") competition. Their story is inspiring - read the full article here.
Introducing P Capital Partners
P Capital Partners (PCP) is an active credit investor and loan provider to mid-sized Northern European companies, who acts as a strategic partner to family-owned and entrepreneurial companies. They invest in a broad palette of industries, industrial and consumer businesses included.

Find out more about PCP.
Funds, Investments, and Exits
Intera Fund IV Closes at €335 Million. Read more.

IPR.VC invests in the new Disappointment Blvd. movie, starred by Joaquin Phoenix. Read more.

CapMan Growth and Mandatum to accelerate Sofigate’s growth.
Read more.

S-Bank launches a fund that invests in unlisted companies. Read more.

Vaaka Partners's exit - EnerKey gets a new owner to accelerate international growth. Read more.

Chromologics successfully completes their €6M seed round financing. Read more.

Bocap's third fund again attracted new investors, reaching EUR 100 million. Read more (In Finnish).

Nordic FoodTech VC invests in food technology startup Hailia Oy, which brings underutilized domestic wild fish back to Finnish dining tables. Read more (In Finnish).

Nordia Fund sold its holding in Hippo Therapy Clinic to Mehiläinen. Read more (In Finnish).

Adelis sells its majority stake in the building services group Quattro Mikenti Group to KLAR Partners. Read more.
Sparkmind’s EdTech focused VC fund reaches €55 million. Read more.

MB Funds to Support the Growth of TietoAkseli. Read more.

MB Funds to Strengthen the Growth of Pyroll Packaging. Read more.

Lifeline Ventures to partner in green hydrogen-producing P2X Solutions. Read more.

Verdane partners with Fiksuruoka to accelerate international expansion and support reduction of food waste. Read more.

Sentica Became a New Majority Owner for the Leading Finnish Workwear Brand Dimex. Read more.

Finnish startup Volare raises EUR 0.7 million from Maki.VC to radically reduce the environmental burden of food chain with high-quality insect proteins. Read more.

Nordic Option to accelerate Owatec's growth. Read more (In Finnish).

Nordic Option and Innovestor Fund Sensmet €1.5M to Accelerate International Growth. Read more.

Read more in the newsroom
Upcoming Industry Events
SHIFT Business Festival | 25.-26.8.
SHIFT brings together change-oriented business leaders, innovators, and decision-makers who believe that business as usual is not good enough. We cannot predict the future, but we can have an effect on it. 

The amazing speaker lineup also includes Finnish Venture Capital Association's Managing Director Pia Santavirta!

Read more and sign up!

© 2021 Pääomasijoittajat / FVCA

Pääomasijoittajat / FVCA
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Helsinki 00101

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