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Fundraising for Finnish Gaming Startups
Jiri KupiainenCEO & Founder, Playfield
Previous startup acquired by Disney in 365 days for 8 figures
Raised seed round from world’s best gaming investor
Currently raising a funding round
16 years in the games business
Company founder at 17
Angel investor
Finland - the startup welfare state?
The most venture capital investments in Europe in
proportion to the GDP were made in Finland
Public funding in proportion to the GDP is less than half
the EU average and less than a quarter of the US
Thoughts on fundraising
If you’re giving away equity / control, understand what the goals are
If you can do it without, you probably should
Things investors care about
1. Opportunity
2. Team
3. Traction
Nailing the pitch
1. Intrigue
2. Intros
3. Iteration
Investors are like lemmings, part 1
Hot right now
● Esports● VR● Combinations thereof● PC?● Live / community / etc.?● Betting?● Platforms?
Not hot right now
● Game studios● Ad networks● Mobile
Different types of investors
Angels
Good
● Connections (intros)● Advice
Bad
● Money
Situation in Finland: Growing number of gaming-savvy, well-connected former entrepreneurs & startup employees.
Look at Supercell...
Early stage
Good:
● Meaningful amounts of money● Getting you ready for series A
Bad:
● Advice (it’s your job to figure out your business)
Situation in Finland: Early stage funding has been very easily available, but expectations on demonstrable traction are now growing fast
Growth (Investors are like lemmings, part 2)
Good
● European growth stage investors have recently raised massive funds
● Not happening until you have real traction
Bad
● European series A == seed round somewhere else
● No one is investing
Situation in Finland: US-based investors decided to take a break late last year, and Europeans followed suit this year. They’re waiting & you probably should too.
Public funding in Finland
TEKES
● You don’t need to be 100% Finnish
● Mix of loans and grants● Friendly loan terms● Funding from thousands to
millions of Euros● Most private investors expect
you to also get TEKES support● NIY program is great
ELY-keskus
● Small, bureaucratic● Good if you’re unemployed
AVEK Digidemo
● Small, for creative project
EU funding
● Complicated
Regional differences
Europe
● Slow to commit● Low valuations● Many investors with gaming
knowledge & connections● Investors in geographic core
separate from periphery● Effect of Brexit remains to be
seen
USA
● Binary● Quick to reach decisions● Limited gaming knowledge
Asia
● Strategic● Very interested in Finnish
gaming companies - including studios
Set up in Finland, leverage TEKES, raise early stage funding from Europe and
growth funding from strategic investors in Asia
