Acceleration program for innovative start up's

1. The Vigo Programme

2. 2
What is Vigo?
• Vigo is a new type of acceleration programme designed to
complement the internationally acclaimed Finnish innovation
ecosystem.
• The Vigo Programme assigns selected independent accelerator
companies to provide drive, experience and financing
opportunities for high-potential Finnish start-ups.

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Key objectives
• The key objectives of the Vigo Programme are to:
– Motivate the best business developers to help the most
promising start-ups grow into successful companies
– Ensure early stage funding for the target companies,
increase their shareholder value, and make them attractive
targets for venture investors
– Raise significant venture capital investments for continued
expansion of the target companies after the acceleration
stage
– Develop the Finnish venture capital market and bring more
international acceleration and venture capital players into
Finland

4. Programme Governance and Execution
• The Ministry of Employment and The Economy (TEM) decided to start
The Vigo Programme in March 2009 in cooperation with Tekes* and
Veraventure**.
• A Steering Group representing significant experience and expertise in
the international growth business was nominated by the TEM in August
2009.
• Tekes coordinates the programme and Profict Partners Oy manages
the execution of the program.
*Finnish Funding Agency for Technology and Innovation
**Currently Finnvera VC (The VC part of Finnvera investing public funds in
early stage companies)
12/12/11

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Vigo Accelerators
• The Vigo Accelerators are private companies
that are run by experienced entrepreneurs.
• The Accelerators offer their proven business
expertise, funding, and extensive contact
networks to the target companies.
• The Accelerators invest both money and time
into the target companies and take on both a
strategic and an operative role in the
companies.
• The Accelerators have been selected from the
best applicants in their respective fields in a
public procurement process.

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Vigo accelerators 2011:
• 43 high profile teams applied for Vigo accelerator status at the
first round 2009
• Six (6) highly respected accelerators were selected and in
operation

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How does Vigo work?
Company
Acceptance is
applies directly
based upon eva-
to the The accelerator
luation of the
accelerator of it’s invests time and
business The accelerator
choice. money and
idea, team and managers take a
sui-tability of the becomes a hands-on role in
company for the shareholder in operations and
program. the company biz development
Fast
Growth
1 2 3 4
. period lasts.18 to 24 months .
 The acceleration
. 200
Descriptio
 The accelerators’ main revenue model is based on the growth in the
n
9
company’s value at the point of exit. Monthly fees may also be
included in the model.
 The companies are able to utilize Tekes’s and Finnvera’s funding
(grants, loans and investments).

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Great case stories!
Total portfolio more than 40 companies !

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International Investors
MHS Capital
AMBIENT SOUND INVESTMENTS

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Angel Investors

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Esther Dyson
Esther Dyson is an active angel investor in a
variety of start-ups, for-profit and otherwise,
around the world. She also operates as the
Internet’s court jester, a person of no institutional
importance who somehow manages to speak the truth and to
be heard when and where it matters. She does business as
EDventure, the reclaimed name of the company she owned for
20-odd years before selling it to CNET Networks in 2004.

12. What’s in It for Me?
• For investors: • For the accelerators:
• Professionally qualified • Significant public leverage in target
opportunities company financing
• Experienced and committed • Financial returns with successful
management teams exits
• High leverage initial funding (R&D • Rewarding and challenging career
and BD grants& loans) options
• For start-up companies: • For the community
• Business competence • Jobs and tax-payers
• Experience • Wealth and prosperity
• Drive for growth
• Customers, contacts and further
financing
>> Accelerated growth, increasing value

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Excellent Results After the First 20 Months
• Currently 6 accelerators (ict, web, health, media, cleantech,
food) with totally 20 + managers working hands-on with start-
ups.
• Over 40 start-ups in portfolio (forecast 50+ by end of 2011).
• Good deal flows and active process in accelerators to grow
portfolio and develop the companies.
• Almost 60 m€ raised, 60% private (36% of total is foreign)
• First international A-rounds 2010, biggest so far 7 Meuros.
• First exit Zokem was aquired by Arbitron (US) for 11,7 MUSD
• Several hundred new jobs created (direct and in-direct).
12 December 2011

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Public and Private Funding in Vigo Programme
Cumulative, M€
70.00 €
Cumulative funding, M€
60.00 €
50.00 €
40.00 €
30.00 €
Total private
20.00 € Total public
Grand total
10.00 €
0.00 €
14 months 19 months 23 months
By 30.9. 2010 By 28.2.2011 By 30.6.2011
12 December 2011

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Distribution of Cumulative Funding
by Source (28.2. vs. 30.6.2011)
By 28.2. 2011 By 30.6.2011
(Totally 39,6 M€) (Totally 57,3 M€)
Domest Domestic
Finnver Accelerat Accelerat non-
ic non- Finnvera ors own
a ors own accelerat Tekes accelerat
9% 5% 7% 5% ors
Tekes ors R&D
R&D 21% 17% 18%
20%
Tekes
Foreign Foreign
NIY
private private
19%
24% 34%
Tekes
NIY
21%
12 December 2011

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Future
• Enhancements
– More accelerators
– Accelerator funds
– Connect and strengthen deal flows
• Strengthen international network
– Create awareness and visibility for start-ups, accelerators and the program
within selected communities
– Invite and attract (through results) investors, VC’s and accelerators
• Renew and invigorate early stage financing
• Strengthen exchange of information and experience with
leading international programs
12 December 2011

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Thank you!
For more information:
www.vigo.fi