Finnvera plc to start an investment fund for seed financing

Finnvera plc will establish a new venture capital investment fund to provide seed money for enterprises. Operating in the whole of Finland, Finnivera’s new subsidiary will provide financing at an early stage when enterprises do not yet have access to other private or public sources of financing. On 29 June 2005, the Ministry of Trade and Industry granted Finnvera a capital loan of 11.5 million euros to serve as capital for the fund company. The capital loan is based on the Supplementary Budget approved by the Finnish Parliament for 2005. Other investors willing to invest in the fund will be sought during autumn.

The purpose of the fund is to eliminate the point of discontinuity existing between financing schemes for product development and private venture capital investment. In the main, the fund will invest in technology enterprises at their early stages and in technology-intensive or innovative service enterprises. The enterprises must have the potential to develop into growth enterprises. According to plans, the fund will launch its investment activities in August-September.

The Board of Directors of the new fund is chaired by Seppo Arponen, Senior Vice President of Finnvera plc. The other members are Veijo Ojala, Executive Vice President; Marja Karimeri, Senior Vice President, Legal Affairs, and Juhani Sutinen, Vice President. Leo Houtsonen, Managing Director of Veraventure Ltd, serves as Managing Director of the new company. Administration is arranged by Veraventure Ltd, Finnvera’s subsidiary specialised in venture capital investment.

The establishment of a fund for seed financing is an element in the Ministry of Trade and Industry’s strategy for revising the seed financing and service system of starting innovative enterprises.

For further information:
Leo Houtsonen, Managing Director, tel. +358 20 460 3980 or +358 400 379 252
Seppo Arponen, Senior Vice President, tel. +358 20 460 3937 or +358 400 670 594