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FINNISH
BUSINESS ANGEL
ACTIVITY 2014
3.3.2015
BUSINESS ANGELS
Private high-growth investors
• Business angels are private individuals who invest their skills, networks
and capital in potential high-growth companies.
• Investment media per angel, per company € 25.000, average€ 68.000.
11.3.2015 FiBAN ry
Knowledge Networks Capital
INTRODUCTION
• FiBAN is one of the largest and most active
business angel networks in Europe with almost
500 approved investor members.
• Over 200 investor members answered the
questionnaire (answer rate 40%).
• FiBAN actively links potential growth companies
to its investors members, 38% of the
companies pitched received investments.
11.3.2015 FiBAN ry
FINNISH BUSINESS ANGEL
ACTIVITY 2014
11/03/2015 FiBAN ry
Capital
invested€21
M(Previous year €11M)
Amount of companies
238(Previous year164)
answers, answer rate 40%(Previous year 154, 30%)>200
FINNISH ANGEL ACTIVITY 2014
Capital investments
2014 2013 2012
Investments
made307 234 235
Target
companies
238
companies
164
companies
69
companies
11/03/2015 FiBAN ry
Record amount of
investments were
recorded.
2014 2013 2012
Capital
investments
total (€)
Over 21 M€ 11 M€ 14 M€
Average capital
investment 69.000€ 49.000€ 60.000€
Median for
capital
invesments
25.000€ 25.000€ 30.000€
11.3.2015 FiBAN ry
The capital
invested almost
doubled.
The median size
stayed the same
but the average
capital invested
increased due to
some larger
investments.
FINNISH ANGEL ACTIVITY 2014
Capital investments
11/03/2015 FiBAN ry
FINNISH ANGEL ACTIVITY 2014
Sectors that received investments2014 2013 2012
ICT 13% 21% 47 %
Health care / Med Tech 5% 19% 8 %
Manufacturing 3% 11% 6 %
Retail and distribution 5% 9% 5 %
Finance and business services 4% 9% 6 %
Creative industries 3% 4% 4 %
Logistics and transport 1% 4% 3 %
Mobile 21% 3% 10 %
Environment and Clean Tech 14% 2% 6 %
Biotech and life sciences 3% 2% 1 %
Energy 1% 2% 2 %
Other 14% 12% 5 %
Unknown 13% 1%
Mobile sector increased due to the size of mobile games, which was asked separately for the first time.
Environmental and Clean Tech investments increased.
Health Tech decreased due to fever larger investors in this sector.
11/03/2015 FiBAN ry
FINNISH ANGEL ACTIVITY 2014
Game investments
2014
Games (Mobile) 17%
Games (Other) 1%
Investments in the
game sector was
asked separately
for the first time.
Mobile game
investment cover
almost fifth of all
the angel
investments in
Finland.
2014 2013
Average investments per
investor 1,6 1,5
Average stake acquired % 7% 8%
Median stake acquired 2,5% 4%
11/03/2015 FiBAN ry
The average
stake acquired
decreased slightly.
FINNISH ANGEL ACTIVITY 2014
Capital investments
2014 2013 2012
Seed 6% 13% 23 %
Startup 41% 47% 38 %
Early growth 48% 21% 39 %
Growth 5% 20%Not asked
2012
11/03/2015 FiBAN ry
Investments in the
seed stage
decreased slightly.
The market
situation might
currently be more
active in the early
growth stage.
The role of
business angels as
investors in the
early-stage market
is increasing in
Finland.
FINNISH ANGEL ACTIVITY 2014
Maturity of the investment target
2014 2013
Initial 53% 59%
Follow-on (2nd
round)23% 17%
Follow-on(3rd round) 10% 9%
Follow-on (4th
round)6% 5%
Later round 8% 9%
11.3.2015 FiBAN ry
Important to
notice that an
angel investment
regularly includes
follow-on
investments which
should be planned
in the investment
process (not
investing all at
once).
FINNISH ANGEL ACTIVITY 2014
Investment rounds
10X or better 17% (7) 9%
5X - 9X 17% (7) 19%
2X - 4X 14% (6) 16%
1X 12% (5) 13%
Lost everything 36% (15) 38%
Unknown 5% 6%
11.3.2015 FiBAN ry
The amount of
10X exit is above
the international
standard.
Also those who
lost everything is
a slightly smaller
this year.
2014 2013
Positive exits 60% (25 exits) 56%
FINNISH ANGEL ACTIVITY 2014
Exits
2014 2013
new jobs created in
portfolio companiesCa. 1200 Ca. 1000
All jobs in the portfolio
companies in the end of
year 2014
Ca. 7000 Ca. 6400
11.3.2015 FiBAN ry
More than 1200
jobs were created
in angel-backed
companies in
2014.
Angel investments
are an effective
and relevant
model to create
new jobs
FINNISH ANGEL ACTIVITY 2014
Jobs created
2014 2013
Will use deduction for
investment made in 201317% 28%
Plans to use tax deduction in
investments made in 201458% 68%
11.3.2015 FiBAN ry
Tax deduction
model to support
angel investing
available since
15.5.2013.
The model has
been challenging
to use with little
benefit.
The tax model has
had positive
symbolic effect.
FINNISH ANGEL ACTIVITY 2014
Finnish angel tax benefit
More information: www.fiban.org/verokannustin
2014 2013
Full-time 14% 15%
Part-time 29% 36%
Hobby 15% 22%
Not known 42% 27%
11.3.2015 FiBAN ry
The active full-time
angels have an
important role
attracting other
less active angels
to make
investments.
Passive investors
easily don’t invest
if the case doesn’t
have a lead
investor.
FINNISH ANGEL ACTIVITY 2014
Angel activity
INVESTMENTS RECEIVED 2014Companies presenting at PitchFinland – 38% received
investments (42 companies)
NO INVESTMENT
45%
INVESTMENT PENDING
17%
RECEIVED INVESTMENT
38%
PitchFinland 2014
11.3.2015 FiBAN ry
Estimated business
angel activity 60-70M€Assumptions:
1. Registered business angels = ca 33 M€ (angel respondents11M€ with
assumption of those who didn’t answer).
2. Large investors (not members): 30 angels x 200k€= 6 M€.
3. Small investors (not members): 1000 angels x 1k€ = 1 M€.
4. Co-investment with public funding: 12M€ Finnvera.
Comparison:
• Finland is expected to have approximately 1000 business angels.
• Angel activity in countries like Finland: New Zealand (600 registered members)
• In the USA, the private sector invests twice as much as VCs.
11.3.2015 FiBAN ry
FINNISH ANGEL ACTIVITY 2014
MEMBER FEEDBACK 2014
Satisfaction with
FiBAN’s
dealflow and
investor services?
Training and best
practice
documents?
Events and
networking
opportunities?
Scale
(1 Poor -
5 Excellent)
3,88 3,71 4,03
11.3.2015 FiBAN ry
FINNISH ANGEL ACTIVITY 2014
Summary
• The size of the business angel investment in Finland was
record high (21M€). In addition to FiBAN statistics
business angels invest (12M€) together with Finnvera.
The total business angel investment in Finland was 33M€.
• The interest towards business angel activity is increasing
in Finland (14 regional angel groups and over 10 sector
focused angel groups).
11.3.2015 FiBAN ry
REGIONAL ANGEL
NETWORKSwww.fiban.org/localnetworks
Helsinki (South Finland)
Jyväskylä (Central Finland), Sami Etula
Kokkola (Central Finland), Tarmo Pallari
Kuopio (Central Finland), Jari Osmala
Lahti (Southern Finland), Jaakko Salminen
Lappeenranta (Eastern Finland), Lauri Haiko
Mikkeli (Eastern Finland), Heikki Sundquist
Oulu (North Finland), Raimo Kuismin
Pori (Western Finland), Kari Ollila
Rovaniemi (North Finland)
Tampere (Tampere region), Elisa Saarinen
Turku (Western Finland), Petri Lehmuskoski
Vaasa (North Finland), Kaj Rönnlund
FIBAN BOARD 2015www.fiban.org/contact
11.3.2015 FiBAN ry
Jaakko
Salminen
Chairman
Anna-Kaarina
Lipsanen
Vice chairman
Harry
BradeJuha
Kurkinen
Torsti
TenhunenAarne
Sipilä
Ari
Hyppönen
Jan Oker-Blom
Managing director
(+358)405517551
Claes Mikko Nilsen
Network Manager
(+358)504913001
HALLINTO
