Case: Fabula

fabula-text-logo-11.8.2015Fabula is an e-books app that allows unlimited access to their e-books inventory through a Spotify type of subscription model. While being very attractive to consumers, their business model fits perfectly for publishers as well. While many players have tried to put together a successful e-books mix, Fabula has nailed to the spot on, giving them a great chance to succeed in billion dollar e-books market.

Fabula offers a great reading experience and an unlimited access to their fast growing inventory of titles (currently >12k titles) through a simple Spotify type of subscription.

Fabula offers a great reading experience and an unlimited access to their fast growing inventory of titles (currently >12k titles) through a simple Spotify type of subscription.

Prior to Butterfly’s investment Fabula has developed the first version of their mobile app, successfully launched the service and taken the leading position in the Latvian e-books subscription market. They have great business metrics, very loyal customer base with high customer lifetime value and their inventory consists of nearly all the publishers in the Latvia.

“Subscription services, like Spotify and Netflix, have taken the market in music and video. However in e-books this is yet to be happen. The fact that people like to read on their own language and lower cost of entry has kept the market more fragmented, furthermore the current business models do have a good fit from publishers’ point of view. We have solved the problem, Fabula is currently leading e-books subscription service in Latvia and our aim is to tap into billion dollar e-books industry and repeat that success in the rest of the world. From our point of view Butterfly is a perfect investor, they have a very constructive hands on approach, provide experience, market knowledge, connections and mentoring. Furthermore their agile approach into business development is a great plus while prioritizing and setting targets to reach the global market and scale up rapidly.” (Eldar Sharafutdinov, CEO of Fabula)

Butterfly invested into Fabula because their business model addresses the needs of different stake holders very well. This is also backed by their metrics. Furthermore they have an excellent hard working team with plenty of ambition. Butterfly’s investment will be used to scale the service and validate the business model in international markets outside of Latvia.

Case: Sonic Force

SonicForce_logoSonic Force has developed LoudBy Sound Cases, that are smart protective cover for smart phones and tablets that improves the sound quality of the device significantly. It does this by employing patent pending passive very precisely crafted horn design that redirects the sound towards the users, as well as improves the frequency band and loudness.

Sonic Force's LoudBy covers deliver excellent sound quality with elegant packaging. The improvement in sound quality is truly impressive.

Sonic Force’s LoudBy covers deliver excellent sound quality with elegant packaging. The improvement in sound quality is truly impressive.

Prior to Butterfly’s investment Sonic Force had developed the first product version for Samsung Galaxy S4, as well as working prototypes for several other devices, filed patents for core IP and conducted market research in Canada with very promising results. Furthermore they have sold the LoudBy Sound Cases to four countries, including US, UK, Canada and Finland.

“During the last few years smart phone manufacturers have turned their attention to bigger and better displays. However sound quality is left behind. We elegantly combine two basic needs of the smart device users, protection of the device and sound quality. Our market research indicated that 37% of users feel that they would benefit from improved sound that LoudBy delivers resulting a market opportunity of over billion dollars. Butterfly brings us the resources and expertise to pursue into new markets as well as develop Sonic Force offering to meet increased number of customers.” (Petri Soronen, CEO of Sonicforce)

Butterfly invested into Sonic Force because of the product with clearly articulated benefits with promising initial traction. Furthermore their team is a great combination of business, mobile industry and truly exceptional sound design expertise. Butterfly’s investment will be used to identify, test and validate the traction as well as scale of the market opportunity with couple of mobile platforms in international markets.

Case: OptiWatti

OptiWatti_LOGO_mintgreen_CMYKHeating and cooling are one of the most significant usages of energy in a household. At the same time most of the current electric heating systems are fairly simple, they don’t take into account factors like thermal capacity or usage patterns of the space, nor weather forecasts. OptiWatti is a fully automated system to optimize the heating that can save up to 50% of the heating costs. At the same time it improves the comfort and control by providing a very user friendly mobile app that makes the control and adjustments of the system a breeze.

OpttiWatti provides a extremely easy to use user interface for both mobile and desktop, that makes the monitoring and controlling of the indoor temperature a breeze.

OpttiWatti provides a extremely easy to use user interface for both mobile and desktop, that makes the monitoring and controlling of the indoor temperature a breeze.

Prior to Butterfly’s investment OptiWatti had launched the first version of the product generating 40k€ of monthly revenue with very satisfied customer base, filed patent application for core IP and secured growing reseller network in Finland.

“Energy efficiency has major impact into our everyday life. Pressure to find new ways to save energy and balance demand-response is growing. According to EU commission, the market size for demand-response alone in Europe is more than €100 Billion. Our mission is to provide easy and effective solutions to this challenge. We’ve introduced a hassle-free room level heating optimization, which is the most effective way to implement demand-response. Butterfly is a perfect partner for us in addition to financial resources, they’re providing international expertize and energizing support.” (Juha Marjeta, CEO of OptiWatti)

Butterfly invested into OptiWatti because of their great team with plenty of business experience and the product that has an excellent user experience and very promising traction. Furthermore OptiWatti has a significant market opportunity not just in Scandinavia, but also internationally. Butterfly’s investment will be used to scale up the sales in Finland and test the traction internationally.

Case: Movesole

movesole-logoA leg injury means time wasted from exercise. Immobilizing the movement is the fastest treatment for most injuries, but the speed and quality of recovery can be enhanced by progressively increasing the leg mobility. However, it’s very difficult to say, what’s enough and what’s too much. Movesole app and smart insole tells it exactly, by making a very accurate map of underfoot pressure on each step. This cuts required recovery time and cost. Furthermore Movesole can help for example casual athletes while fine tuning their running style.

Movesole app and smart insole gives a clear accurate map of the underfoot pressure. The information is crucial while optimizing the recovery from leg injury.

Movesole app and smart insole gives a clear accurate map of the underfoot pressure. The information is crucial while optimizing the recovery from leg injury.

Prior to Butterfly’s investment Movesole had developed a technology proof of concept version of the product and secured the first major customers.

“Rehabilitation is our first target market. However the biggest opportunity we see in normal people’s exercise. There are over 100 million running shoes sold annually in US and Europe alone. The trend of measuring more and more of our daily life together with technology development will take us to next phase where Movesole insoles will be part of everyday exercises, regardless what your exercise method is. Butterfly’s team’s understanding of how to successfully scaling business have been and will be very useful support for us.” (Eero Kaikkonen, CEO of Movesole)

Butterfly invested into Movesole because they had a great balanced team with plenty of HW, SW and startup experience, as well experience and existing contacts to their first target segment, medical rehabilitation industry. They have an excellent product concept with a large market opportunity and room to scale up to consumer markets as well. Butterfly’s investment will be used for launching the first product version and validating the business model and market opportunity.

Case: CubiCasa

cclogo-tummaProperties are one of the most valuable assets sold on a daily basis. Each time a property is sold there’s a need for a floor plan along with the other materials. However the quality of existing materials varies a lot and quite often they’re not even available in digital form. CubiCasa makes it super easy for anyone to transfer their floor plans into appealing high quality form cost efficiently and on top of that they automatically create an approximate 3D model based on the floor plan. User just submits an image of the floor plan, basically any source material will do, even something drawn into napkin. These add tremendous amount of informational value around the transaction. Furthermore there’s numerous other purposes that CubiCasa’s floor plan database can used for, like planning decoration or being used as a source material for building automation services and indoor navigation.

From a napkin into a high quality approximate 3D floor plan in a snap.

From a napkin into a high quality approximate 3D floor plan in a snap.

Prior to Butterfly’s investment CubiCasa had launched successfully their first product version and honed the delivery process into excellent condition especially for real estate market. They have nearly 10% market share of Finnish real estate agents and their month to month growth ration have been around 15%. Furthermore they have taken their first steps into North-American market.

“We have been doing property visualisations manually for long. Some time ago we found a way to significantly lower the cost of entry level product, i.e. creating basic floor plans and indoor 3D model based on it. There’s definitely huge market for such data, but the right business model is a bit trickier question. That’s where Butterfly fits in very nicely. In addition to bringing in money, their business model expertise is a great asset to us. We also liked their coach-type attitude to co-operation and entrepreneurial spirit. They’re definitely the kind of people any startup team would like to have around.” (Harri Pesola, CEO of CubiCasa)

Butterfly invested into CubiCasa because they can cumulate floor plan data and 3D models extremely efficiently while making money in the process. This provides protection for their business and enables numerous business models, each with multi-billion dollar market opportunity. Furthermore the team has strong entrepreneurial background with plenty of startup experience and good connections to the main market in North America. Butterfly’s investment will be used for testing and validating business models as well as entering to the North American market.

Case: Asmo Charger

ASMO Chrome Ring 2There are hundreds of millions of mobile phone and tablet chargers sold each year. At the moment the idle chargers that are left plugged-in use several nuclear plants worth of energy even when there’s now device connected. Furthermore they present fire hazard, there are numerous fires started by faulty idle chargers each year. Patented Asmo Charger solves these problems. It’s a charger that consumes zero energy when there’s no device connected. Yet at the same time it offers the same convenience than traditional chargers, by turning itself on automatically whenever a device is connected to it.

Asmo Charger comes in a stylish package, consumes zero energy when idle and prevents the fire hazard related faulty idle chargers.

Asmo Charger comes in a stylish package, consumes zero energy when idle and prevents the fire hazard related faulty idle chargers.

Prior to Butterfly’s investment Asmo had completed the fully functional prototype of the charger as well as filed in several patent application related to IP around the technology and confirmed the end user traction. Furthermore they had successfully attracted interest of several device vendors.

“There is over 7 Billion mobile phones with charger which consumes power all the time when plugged to wall. Those chargers consume ridiculous amount of electricity for nothing. We’re going to change that, our charger do not consume any stand-by power and is being used exactly like the old chargers. We have discussed with Butterfly from very beginning. We needed expertise especially on IP and licensing issues, where Butterfly is particularly strong. I also appreciate the fact that they’re good guys, open and helpful. They feel almost like an extension of the original founder team.” (Asmo Saloranta, CEO of Asmo Charger)

Butterfly invested into Asmo Charger because of their simple, well protected, solution to a very well defined problem that has a global scale. Butterfly’s investment will be used for manufacturing the first few patches of chargers, further protecting the IP as well as sales and marketing of the charger and negotiating the licensing deals with major device vendors.

Case: Augumenta

augumenta-logo-27.10.2014Augmented reality (AR) might sound like a science fiction, yet there are many industrial applications where AR is being deployed already today, for instance in warehousing and service operations. Typically AR brings in loads of information in meaningful way to the task at hand that speeds up the work and reduces the number of errors. However AR hasn’t been very interactive, thus limiting the power and uses of it. AR represents paradigm shift in device user interaction and requires reliable advanced means of interaction such as hand gestures. Augumenta is forerunner here, delivering fast, reliable and energy efficient gesture detection and virtual inputs for AR interaction as an easy to integrate SDK for application and device vendors.

There are wide variety of industrial applications where AR becomes handy, like identifying the right pipe and operating field automation on the spot.

There are wide variety of industrial applications where AR becomes handy, like identifying the right pipe and operating field automation on the spot.

Prior to Butterfly’s investment Augumenta had finished the minimum viable product and secured two industrial system integrators, who are now evaluating the package. Furthermore they have one granted patent and two more filed, securing the related IP.

“Augumenta was founded with a clear mission: to make wearable devices convenient and easy to use. Smartglass is a powerful tool for enterprises, and when equipped with our interaction solutions, they enhance productivity at workplace, resulting in significant cost savings. We focus on bringing our technology to different industry verticals, while expanding our product offering and patent portfolio. Wearable devices are a dynamic, fast-developing market with some unique challenges. We are delighted to have Butterfly as our investor; their vast experience in business strategies and IPR management is a great asset for taking Augumenta to the next level.” (Tero Aaltonen, CEO of Augumenta)

Butterfly invested into Augumenta because of their innovative market approach that allows them to jump ahead before the consumer mass adoption of AR. Their product offers easy path of AR integration, way smoother gesture detection and AR interaction as well as substantially longer battery life than competing products. Another key driver for the investment was the highly professional PhD level founder team with years of relevant industry experience. Butterfly’s investment will be used for confirming the product market fit and securing the first few major customers.

Case: Ceruus

Ceruus logo, white bgCeruus has created a reliable, low-cost and easy to implement service platform for internet of things products and services creation. The platform has a flexible data synchronization which operates reliably also in environments where there is no fixed internet gateway, i.e. when an end user device, such as smart phone is used as a gateway. This provides plenty of flexibility for products and business models. Their mass production ready reference implementation includes low cost standalone Bluetooth based internet of things hardware module that records temp / motion data and provides control when integrated to other hardware. Internet of things is one of the billion dollar megatrends and Ceruus addresses some of the key competitive factors, i.e. reliability, power consumption, ease of implementation, mobility and flexibility.

Ceruus allows easy access to such information such as energy consumption and temperature at home.

Ceruus allows easy access to such information such as energy consumption and temperature at home.

Prior to Butterfly’s investment Ceruus had developed the first mass production ready product version as well as secured the first pilot customers from Finland, Germany and Taiwan.

“Internet of Things will reshape the life in the same way as the Internet has done so far. Services accessible from the web and mobile will for instance replace ordinary home instruments, like temperature gauges and room thermostats, and automate business work processes. Among other things Ceruus technology will decrease the cost of implementation and add flexibility due the fact that any smart device, such as mobile phone or tablet, can be used as a router. We’re particularly happy that Butterfly invested into us. While money is obviously important, even more important is the fact that they bring in their business insight and challenge us to see what we do from a fresh angle.” (Matti Verkasalo, CEO of Ceruus)

Butterfly invested into Ceruus because their product allows easy access to multiple internet of things business. Furthermore they have secured multiple interesting pilot customers. Ceruus team also has a very strong experience of industrial scale productisation, especially what comes to low power consumption products. Butterfly’s investment will be used for completing the second round of customer product pilots as well as business model testing and verification.

Case: Alpakka Media

alpakka_media_logoAlpakka Media, was born from love for stories and urge to serve the needs of the demanding audience of children. During the last few years Alpakka Media has been producing children’s games and animated television series in co-operation with Finnish Broadcasting Company channel 2. In fact their games are the most popular children’s content in TV2 with over 50M playing sessions so far. Now they’re going to leverage this huge content storage and launch series of children’s mobile games internationally.

Prior to Butterfly’s investment Alpakka Media has produced years of animated TV-series, secured the production contract for TV2 till 2019, 22 web & mobile games, 12 children’s books.

“We’ve been creating the content children in Finland love. Now we’re able to bring Hertta and our other characters to the fingertips of a global audience. We’re super excited of this opportunity. Picking the right investor is not just about money, at best it’s a co-operative relationship. Furthermore, Butterfly team has strong expertise in metrics and test marketing, both exactly the kind of knowledge that’s required in games business.” (Niina Tuikkala, CEO of Alpakka Media)

Butterfly invested into Alpakka Media because their highly popular content is ready for localization and has proven traction among children. This allows substantially easier market entry. Alpakka Media team has years of experience amongst the children’s content. Butterfly’s investment will be used for localization and test market launch of the Alpakka’s first few international games.

Four new investments by Butterfly Ventures – Strong portfolio presence in Slush

Four of Butterfly’s portfolio companies have been selected to appear among the best companies at Slush. Connexbird, Fourdeg and NaturVention were selected into TOP100 early stage companies list and Kyynel into TOP50 growth companies list. Meanwhile, Butterfly has been active also on the investment front. The new investments are Ceruus, Augumenta, Alpakka Media and Asmo Charger.

”It was nice to notice that four of our portfolio companies were selected among the best of Slush. Selection is a real achievement as selections were made from a group of over thousand international startups and only 10% of them are among this elite group.” tells Juho Risku, who leads the startup development at Butterfly, ”Our portfolio seems to be performing a lot better than average also from this respect, as half of our portfolio companies who were available for selection were also picked.”

Butterfly has invested so far 2.7 million euro in investment rounds totaling up to 7.2 million euro. In less than two years Butterfly has found 21 companies into its portfolio and completed over 41 investment rounds into those companies. Companies have been selected from the analyzed 500 companies, out of which 25% have been looked at more closely as investment targets. During the first half of 2014 every seventh early stage venture capital investment in Finland were Butterfly’s.

”Our portfolio has been growing even a bit faster than expected. In a short period of time we have been able to achieve a significant position within the early stage venture capital in Finland.” says CEO of Butterfly Ventures, Matti Kanninen, ”I am most delighted that more and more often the founder team has consciously wanted us in particular as their investor and coaching partner. It is thus likely that by the end of the year the number of our portfolio companies will grow further by at least two or three companies.”

Enquiries and additional information:

Matti Kanninen, managing partner
Phone: +358 (40) 5455877

Butterfly Ventures

Butterfly Ventures is an early stage focused startup development and venture fund management company located in Oulu, Finland. Behind the company are Matti Kanninen, Ville Heikkinen and Juho Risku as well as Board members Antti Kosunen, Jukka Mäkinen and Jari Pasanen. Butterfly Ventures has offices in Oulu and Helsinki.


Northern Startup Funds – Leverage from the EU

Northern Startup Fund is a venture capital fund managed by Butterfly Ventures that invests into early stage startups. It is the first asymmetric fund in Finland. In the case of Northern Startup Funds the asymmetry means that the public investor, which benefits also in a form of tax income, lowers the risk of a private investor by offering a possibility for returning the invested capital and profit share before the public investor. From the private investors’ point of view this improves the risk – return expectation ratio significantly. The public investors in the Northern Startup Funds are the City of Oulu and the European Regional Development Fund (the Northern Ostrobothnia Centre for Economic Development, the European Union). The investment capital of Northern Startup Fund is at the moment 10 million euro.


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