Finnish Business Angel Activity 2015Published 21.3.2016

IntroductionFiBAN gathers yearly Finnish business angel activity.

FiBAN gathers yearly Finnish business angel activity. In 2015 over €37M was invested in 322 companies by business angels, which is 15% of the total €253M invested in Finland.

Finland has one of the most active and largest angel networks in Europe.

Angel activity content4 FiBAN activity5 Regional angel activity6 Finnish startup investments 20157 Finnish angel investments 201510 Sweat equity investments11 Startup valuation12 Industrial split of investments13 Finding startups and angel role14 Angel co-investors15 Exit16 Jobs created through angel investments

FiBAN activityQUESTIONNAIRE221 44% Individual business angel responses

144 65% Respondents who've made investments

FIBAN MEMBERS

507 Number of registered members

51 Average age

8,2 Average years of angel investments

85% Has higher education

Women members (+ 27%)11 %

Regional angel activityINVESTMENT ACTIVITY

73% Helsinki region5% Kuopio region4% Tampere region4% Turku region3% Jyväskylä region2% Oulu region1% Hämeenlinna region1% Living abroad8% Other Finnish regions

FIBAN MEMBERS LOCATED

71% Helsinki region 1% Mikkeli7% Tampere 1% Pori 4% Turku 1% Vaasa 3% Oulu 1% Kokkola2% Hämeenlinna 1% Lappeenranta2% Jyväskylä 1% Russia2% Kuopio 1% USA 1% Joensuu 1% Other Nordic1% Lahti 1% Other Baltic

2 3 9 19 11 268 9 2424 33

3787

60

7090 73

962130

68

59 89

94

0

50

100

150

200

250

2010 2011 2012 2013 2014 2015

Other Finnish business angels Finnish venture capital Foreign investors

M€

Finnish startup investments 2015

Resources: Innovestor, Invesdor, Kansalaisrahoitus, Venture Bonsai, Vigot, FVCAn arvio / FiBAN, Finnvera / FVCA, Perep analytics / VC Zone, Helsinki Business Hub

118

171

206

253

192

102

€37M Total financial capital invested

€20,5M Gathered from FiBAN survey

€16,5M Additionally co-invested with Finnvera

322 Startup companies received investments from angels

271 Gathered from FiBAN survey

51 Co-invested with Finnvera

INDIVIDUAL ANGELS€20.000 Median investment

2% Median startup stake acquired per angel

Finnish angel investments 2015

PITCH FINLAND

104 Companies presented34% Received investments

LEAD INVESTORS

36% Worked as lead2 Led investments on average

ANGEL ACTIVITY22% Full-time45% Part-time33% Hobby

JURIDICAL43% As a person57% Through a company

Finnish angel investments 2015ANGEL PROFILE€200 000 Median cumulative startup investments

6,5 Total amount of startup investments1,8 Total amount of exits

GROWTH STAGE Growth 28 %Early growth 34%

Startup stage 28 %Seed-funding 9 %

Finnish angel investments 2015INVESTMENT ROUND 7 % Later round 19%

2 % 4th round 2%

8 % 3rd round 19%

25 % 2nd round 17%

57 % Initial 43% € INVESTED PER ROUND

Sweat equity

Type of sweat equity work invested16% Marketing or Sales Consulting20% Financial Consulting9% Legal Consulting7% Technology Consulting31% Board Work16% Other work

8% Average received sweat equity share (%)19% Amount of FiBAN members

who work for sweat equity

Non-capital investments in exchange for ownership

Valuation

COMPANY VALUATION BY ROUND €

€ 0,7M Seed € 1M Startup€ 2M Early growth€ 3M Growth

€1 006 000 Median company valuation that received investment

AVERAGE VALUATION AT PITCHFINLAND

€1,8M Valuation requested

Industrial Split of InvestmentsAmount of

investments %Money invested% €

Biotech and life sciences 2 % 2% € 384 446Creative industries 5 % 4% € 836 300Energy 2 % 1% € 217 970Environment and CleanTech 9 % 20% € 4 021 731Finance and business services 9 % 6% € 1 163 120Healthcare /MedTech 9 % 9% € 1 870 359ICT 26 % 29% € 5 896 687Logistics and transport 2 % 2% € 412 280Manufacturing 4 % 4% € 890 909Mobile 9 % 7% € 1 390 333Retail and distribution 5 % 3% € 677 500Social and sustainable investments 2 % 0,8% € 160 004Other 11 % 10% € 2 037 504

FIBAN’S SECTOR FOCUSED ANGELS GROUP

Bioeconomy LifestyleCleantech ManufacturingGames Media

Healthtech Mobile

ICT Hardware Software

Daily consumer goods

Finding startups and angel roleCHANNELS FOR FINDING STARTUPS

35% Was introduced by a business contact, other angel and/or friend

27% Met the entrepreneur at a FiBANor other angel related event

22% Knew the entrepreneur9 % Through a Vigo accelerator7 % Through a venture capital firm1 % Through a crowdfunding platform1 % Through a public institution

ANGEL ROLE IN A STARTUP

42% Passive involvement25 % Ordinary member of the board11 % Chairman11 % Advisor5 % Board observer seat3 % Member of the management team2 % Other work, consultant role1 % Other work, employee position

Angel co-investors

39% Previous owners invested in the same round

95% Angels investedwith a co-investor

FORM OF CO-INVESTORSINVOLVED IN A ANGEL ROUND

49% Other business angels13% Venture Capital firm/fund9% Finnish Public institutions6% Vigo accelerator company

Exit

EXIT MULTIPLES12% 10X or better10% 5X - 9X22% 2X - 4X8% 1X

36% Less than 1X10% Unknown

45% Total amount of successful exits (more than 2X)

TYPE OF EXIT4% IPO

58% Acquisition4% Merger

11% Closing down19% Bankruptcy4% Other

Jobs created through angel investments in Finland

12.400 Approximate total number of cumulative startupjobs with angel investments

1.200 Approximately reported growth in number of jobs 2015 in target companies

Inspiringprivate investments

Thank you for your interest