Tekes services for young innovative growth companies



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Tekes services for young innovative growth companies Jukka Häyrynen 11.9.2012

Tekes the Finnish Funding Agency for Technology and Innovation Tekes services Funding for innovative R&D and business Networking Non-profit - takes no equity or ownership on intellectual property. Customers Finnish and international companies located in Finland Universities, research institutes, hospitals etc. Resources Budget: 600 million euros annually Personnel: 360 Public agency under the Ministry of Employment and the Economy

Two thirds for enterprise R&D and innovation projects Budget 2012 554M Enterprises 349M 1/3 research institutes, universities and polytechnics 2/3 R&D&I and business development of companies

SME s get 70% of funding for enterprises n. 350M A significant contribution in companies under 6 years old 35 % Companies under 6 years old 35% Established growth intensive enterprises with less than 500 employees 30 % Enterprises with more than 500 employees

Key figures 2011

Tekes funding supports other sources of corporate funding Stage Seed Start-up Growth Expansion IPO Funding Friends, fools and family Local gov t support Cash Flow Tekes loans and grants Angel investors Governmental venture capital Private venture capital Banks Stock exchanges

Lack of Financing Lack of Financing Limited seed and early stage financing desources Public sector fixes Tekes Young Innovative Companies Business development Growth and exports, expansion 1.000.000 euros Finnvera venture capital Incentives for business angles Vigo Accelerators, funds Other early stage funds KÄYNNISTÄMINEN KEHITTÄMINEN JA TUOTTEISTAMINEN KASVU KANSAINVÄLISTYMINEN

Tekes services for growth companies by development stage Seed Idea Seed, start-up Prototype Start-up Product 1.0 Early Growth Domestic Growth International Launch Expansion Global Tekes research, Tekes r&d&i development funding, loans and innovation and grants funding Young Business Innovative development Growth funding, Companies < 6yrs YIC old Tekes programs and networks bring partners, expert knowhow, leverage Tekes programs: Functional Materials, Groove, Green Growth etc Growth Channel Global Access Program (GAP) Vigo- Accelerators EU framework programmes Strategic Centres for Science, Technology and Innovation (SHOK)

Young Innovative Growth Companiesprogramme Proof of demand 1.000.000 euros in stages with milestones Business development From local to global Phase 1 Phase 2 Interim evaluation Interim evaluation 16 companies RAPID GROWTH 40 companies A maximum of EUR 750,000 A maximum of EUR 250,000 26 20 Funding completed (EUR 1m) 100 Funding period active Funding discontinued Evaluation panel Advisory business and VC specialists PRECONDITIONS FOR GROWTH 49 companies PLANNING OF BUSINESS ACTIVITIES Maximum of EUR 50,000 Preliminary phase

26 companies have completed the YIC project by 06/2012 Beneq Visma Severa Confidex Footbalance System SnooBI Rightware Eniram Multi Touch Webropol REACHLaw RM5 Software 7signal Glykos Finland SYRINX Bioanalytics CEM4Mobile Solutions Gasera Applifier WOT Services Helpten Nidecon Technologies Aito Technologies Mendor Raised venture capital in total of over 80M 3x Tekes funding to these companies 2004-2010 (24M ) Tripled the composite turnover during YIC funding (15M -> 53M ).

Rahoitusta nuorille kasvuyrityksille myönnetty vuonna 2011 n. 50 milj. 60 000 000 50 000 000 40 000 000 16 NIY-esivaihe 30 000 000 13 9 T&K-rahoitus 20 000 000 10 000 000 5 17 M 19 M 33 M 20 M NIY -rahoitus 0 2008 2009 2010 2011 08/2012 NIY-rahoitusta saavat ja/tai Vigo-yritykset

Vigo accelerators Experienced entrepreneurial teams advice young innovative companies that have international potential and urge to grow Vigo-program combines Innovative business ideas Seasoned international business experience Private and public sector funding. The companies in accelerators have a fast track to YIC funding when mature enough Cleantech Invest Gorilla Ventures Innovatum Partners KoppiCatch Lifeline Ventures Newentures Royal Majestic Vendep Veturi Venture Accelerator

Vigo Accelerators Unique public & private partnership ICT, media Cleantech Bio Design Innovatum Partners Accelerator services Management fee Start-up companies Grants & loans Equity Financed by Tekes, Finnvera + Vigo funds and other private investors

Tekesin rahoitus bioalan yrityksiin vuositasolla 2007-45 40 35 30 25 20 yrityksiä kpl M 15 10 5 0 2007 2008 2009 2010 2011 1H 12 Rahoituspäätökset keskimäärin 400-800 k, muutama 1M + Yrityskoko micro, pieni tai pk (muuttama päätös isoille) Projektit usein suhteellisen pitkiä, 1-2 v

Life Science companies in YIC funding scheme BCB Medical Oy Faron Pharmaceuticals Oy Glykos Finland Oy Medeia Therapeutics Oy Medisapiens MetGen Oy Mendor MSCHIC Cosmetics Northforce Onbone Oy Oncos Therapeutics Oy Oy Fennopharma Ltd PlexPress Oy StatFinn Oy SYRINX Bioanalytics Oy Valkee Oy Zora Biosciences Oy

Tekes funding for YIC companies in LifeScience sector, until 05/2012 9 000 000 12 8 000 000 7 000 000 10 6 000 000 5 000 000 4 000 000 6 11 3 000 000 2 000 000 6 4 1 000 000 2 3 0 2005 2006 2007 2008 2009 2010 2011 2012

Thank you! jukka.hayrynen@tekes.fi Phone: +358 50 557 7970