Finnish Industry Investment plays an important part in Finland’s innovation system by giving dynamic growth companies access to the financing they need to expand internationally.
Investing in growth companies, both directly and through venture capital and private equity funds, is central to the contribution that Finnish Industry Investment (FII) makes to helping stimulate Finnish industry, promote the development and deployment of new technology, and create new jobs.
FII’s investment focus is on growth and international expansion, together with mergers & acquisitions and restructuring; and its key principle is to work hand-in-hand with private investors – from Finland and abroad – to share the risks involved while boosting the availability of funding, investment expertise, and networking opportunities.
FII pays special attention to areas with significant growth potential that typically suffer from limited access to private capital, such as high-risk technology companies and the mining sector.
|A specialist in developing, manufacturing, and supplying oil spill recovery equipment and services, Lamor maintains a global presence to ensure that it can deploy its expertise rapidly and effectively wherever and whenever a spill occurs. FII has been an investor since 2012.
FII always aims to make a return on its investments, in the same way as private investors do, and believes that companies backed by venture capital tend to grow faster, create more jobs, expand internationally more rapidly, and attract more-experienced board members than other companies. As a government-owned investment company, objectives linked to economic and social impact also play a key role in FII’s mission – and are reflected in a greater emphasis on areas such as job creation, strengthening selected industries, and fostering growth in specific fields than is typical of conventional venture capitalists.
Partnering up with international venture capitalists
Young growth companies are entering the international arena at a much earlier stage in their development today than even just a decade ago, and need to be able to operate effectively in the international marketplace much earlier as well. Venture capital investments are also more international today, and Finnish venture capital investors now typically see the Nordic region as their ‘home market’ rather than just Finland alone.
Reflecting these trends, FII has gradually stepped up its investments in international venture capital and private equity funds, as a means of increasing these funds’ investments in Finnish growth companies. An increasing number of FII’s co-investors also come from abroad today.
FII is keen to draw the attention of international venture capital funds to Finnish growth companies and the opportunities they offer. In addition to leveraging new sources of funding, this can help give Finnish companies access to valuable contacts and expertise, while introducing international investors to world-class technology and know-how.
FII also channels international venture capital to Finland by introducing Finnish companies to foreign financiers through the annual Enterprise Finland Venture Forum, for example.
|Endomines has been increasingly active in exploring and developing gold deposits in Finland over the last few years, and opened the Pampalo gold mine in 2011. FII has been an investor since 2003.