Finnvera to sell most of its holding in Seed Fund Vera Ltd

Finnvera plc is selling about 80 per cent of its holding in Seed Fund Vera Ltd. This deal is one step in the process where Finnvera gradually gives up its venture capital investments.

The holding is being sold to Innovestor Kasvurahasto I Ky, a Finnish limited partnership. Finnvera will remain an owner of Seed Fund Vera Ltd, with a holding of about 20 per cent. The Fund attracted interest among both Finnish and foreign buyers. Innovestor’s offer corresponded most closely to the seller’s objectives.

Now that there will be a new private company on the venture capital investment market, the arrangement ensures the continuity of the Fund’s investment activities and provides better opportunities to obtain further financing for the portfolio companies.

Underlying the deal is the policy decision made by the Ministry of Economic Affairs and Employment, whereby responsibility for the development of early-stage venture capital investments, which used to be vested in Finnvera, has been transferred to Tekes Venture Capital Ltd.

The Seed Fund has activated private investment

“From the perspective of its impact, Finnvera’s early-stage investment has been important. Through the Fund’s activities, portfolio companies have acquired a total of EUR 350 million in private capital. Of this total, business angels have accounted for about EUR 90 million. These sums are important even in international comparison,” says Pauli Heikkilä, CEO of Finnvera.

The sale of Seed Fund Vera Ltd will bring much private capital and know-how to the Fund. This will add stability to the further development of the portfolio companies. The current portfolio companies will gain more networks and new kinds of opportunities for growth.

Finnish Industry Investment and Tekes will share responsibility for the State’s venture capital investments

From now on, Finnish Industry Investment Ltd and Tekes will bear the primary responsibility for the State’s venture capital investments. Of these two, Tekes Venture Capital Ltd, which is administered by Tekes, focuses on early-stage investments through investment funds.

Seed Fund Vera Ltd began operations in 2005.

Additional information:

CEO Pauli Heikkilä, Finnvera plc, +358 29 460 2400