BUSINESS ANGEL ACTIVITY IN FINLAND 2012 "BUSINESS ANGELS INVESTED OVER EUR 14 MILLION IN POTENTIAL GROWTH ENTERPRISES" Business angels have become an important factor for new business and jobs in Finland. The ICT and mobile sectors attract the greatest interest. Business angel investments had a substantial impact on the creation of new business, and thereby new jobs, in Finland. In the future it would be important to foster learning among inexperienced business angels and, in general, to promote successful exits. In brief: • Respondents: 99 business angels. • Investments in euros: Over EUR 14 million. • Syndicated investments: 70%. • Type of investment: Initial investments: 50% vs. follow-on investments 50%. • Growth stage of the portfolio company: Seed stage: 23%, Startup 38% and Early growth 39% • Exits: More than half yielded a profit. More information: https://www.fiban.org/business-angel-activity-finland-2012

1. BUSINESS ANGEL
ACTIVITY IN FINLAND 2012
FiBAN-Finnvera questionnaire 2/2013

2. Business angel activity 2012
• Structured angel activity is increasing.
• FiBAN and Finnvera have agreed that
business angel activity is moved over to
FiBAN.
• Networks cover ca 450 registered members.

4. 1. Business angel activity 2012 High respondents
rate approves that
Questionnaires sendtto +400 the members are
active and
Respondents 99 angels (23%) motivated to
improve business
Only FiBAN members 46%
angel activity.
Only Finnvera members 14%
Members of both networks 39%
Women 3%

5. 2. Business angel activity 2012
Total number of business angel
235
investments announced Business angels had
Portfolio companies 69 on average been very
active in 2012 and
Average investments per investor 2.5 made on average
Over €14 million large investments.
Capital investments total (€)
(€14 198 204,00) Also sweat equity
Average capital investment €60 418 investments had an
important role.
Median for capital invesments €30 000
Investment range €1,000 - Over €1 million
25% of total investment
Sweat equity
amount (83 answers)

6. Estimated business angel activity in Finland MEUR 50
Assumpitions:
1. Registered business angels = MEUR 28
(Respondents MEUR 14 x 2 [3/4 of members are assumed to invest the
same as 1/4]).
2. Large investors (not members): ca 30 persons x €200k= MEUR 6.
3. Small investors (not members): 1000 persons x 1k€ = 1 M€.
4. Co-investment with public funding: MEUR 10 Finnvera, Others MEUR 5.
Comparison:
• Finland is expected to have approximately 1000 business angels.
• Networks have a shortage of of large and small scale investors.
• Angel activity in countries like Finland: Norway approx. 2500 angels (4.8
million inhabitants), New Zealand (600 registered members)
• In the USA, the private sector invests twice as much as VCs.

7. 3. Business angel activity 2012
Investments made as
a) Private person 40%
Typical investment
b) Through a company 60% was made in a
Investments made: syndicate with
a) Alone 30% other business
angels.
b) Through group investment (Syndicate) 70%
Group investments made with:
a) Business Angels 70%
b) VC / Funds 15%
c) Public institutions
15%
(Finnvera, Tekes, etc)

8. 4. Business angel activity 2012
Sectors that received investments:
(Based on European Business Angels Network)
a) ICT 47% ICT represented
b) Finance and business services 6% half of all
c ) Logistics and transport 3% investments.
d) Manufacturing 6%
Other important
e) Mobile 10%
sectors were
f) Creative industries 4%
mobile,
g) Biotech and life sciences 1%
healtcare/medtech.
h) Health care/Med Tech 8%
i) Social and sustainable investments 2%
j) Energy 2%
k) Environment and Clean Tech 6%
l) Retail and distribution 5%
m) Other, what? 5%

9. 5. Business angel activity 2012
Investments made were:
a) Initial 50%
Investments were
b) Follow-on 50 % divided in half
The stage of the company when investment between initial and
was made: follow-on
a) Seed 23 % investments.
Seed phase
b) Start-up 38 %
companies received
c) Early-growth 39 % a little less
investments than
Jobs created in portfolio companies: 275 (+33%)
more mature
Largest increase of jobs in one company 42 jobs companies.
New jobs per investment 5
Cost of one new job €28 000

10. 6. Business angel activity 2012
Exits 30
Form of exits:
Over half of the exits made
A) Buyout 17 % during 2012 were profitable.
B) Merger 10 % On average respondents
hade made 1.3. exits, thus;
C) Sold to another investor 27 %
they can be considered
D) Bankruptcy / Closing down 40 % experienced business
angels.
E) Other 7%
Losses / Profits from exit:
A) < 1X 45% made losses
B) > 1X - < 10X 55% made profits
C) > 10X One over 10X

11. Finnish business angel activity on average
Respondents 97 persons
Business angels
had made 600
Average age 50 y
investments
Worked as business angel Approx. 5.7 y
totalling over €60
Business angel activity million.
a) Full-time 14 %
b) Part-time 62 %
c) Hobby 24 %
Over 600 investments
Amount of angel investments in total
(Average 6.6)
Capital invested in total € 60 million
a) Average Over €650 000 €
b) Median €200 000
Total number of exits Over 100
Average exits per investor 1.3

12. SUMMARY
• Business angels have become an important factor for new
business and jobs in Finland.
• On average the activity is relatively professional.
• ICT and mobile the dominant sectors among portfolio
companies.
• In the future it would be important to foster learning among
inexperienced business angels and, in general, to promote
successful exits.

13. CONTACT
Riku Asikainen Leo Houtsonen
FiBAN board chairman Veraventure Oy, Managing Director
info@fiban.org leo.houtsonen@finnvera.fi
Jan Oker-Blom www.fiban.org
FiBAN, Managing Director Twitter: FiBAN_org
jan@fiban.org LinkedIn: FiBAN group
(+358)405517551