Case: CaddieON

CaddieOn LogoProfessional athletes use all available information to improve their performance. In golf, collecting the data requires a load of statisticians who follow the players and record each shot. Amateur golfers would love to have the same means to improve their performance as well. However, all the prior solutions either require too much concentration on manual data collection or one needs to pay big money for a live caddie to do the job. CaddieON allows automated golf data collection. The patent pending product enables the round events to be recorded shot by shot, shared and broadcasted in real time. Even better, player can compare his performance with other players and compete in all game details, not only with total round score. Instead of gadgets, you get to focus on game and play better. Now, that’s a strong value proposition for a golfer.

The CaddieOn wristband automatically detects the strokes and the club used for it. There's no easier way to keep track of your golf game play.

The CaddieOn wristband automatically detects the strokes and the club used for it. There’s no easier way to keep track of your golf game play.

CaddieON has launched the product and starting the sales in Finland during summer 2013. Prior to investment it has already announced cooperation with half a dozen golf courses in Finland and collected crowd funding from Finnish golfers worth 13 thousand euro.

”There are 60 million golfers in the world. CaddieON will lead the way in giving the golfers most value for their golf and making golf more rewarding, enjoyable and interesting than ever. The international market potential is worth several hundred millions. We wanted to have an investor who can help us with business models as well as finding the right partners. Butterfly was our best choice and shares our passion for lean customer driven development.” (Tuomo Lalli, CEO of CaddieON, Inc.)

In addition to automatically created golf game play record the CaddieOn mobile app has all the features you would expect from a golf app and there's many more coming up.

In addition to automatically created golf game play record the CaddieOn mobile app has all the features you would expect from a golf app and there’s many more coming up.

Butterfly invested into CaddieON because the patent pending product concept allows superior ease of use and thus stronger value proposition for golfers in a market worth of several hundred millions. Furthermore the business model offers several avenues for monetization. The CaddieON team has shown both the ability and commitment. Finally their ongoing crowd funding campaign has already gained significant traction among their future customers. Butterfly investment will be used to validate value proposition and establish the required metrics to leverage the valuation up for follow-on financing rounds.

Case: Fourdeg

Fourdeg_logo_RGB_1280x1549pxEvery property owner knows that heating costs are rising year by year. Most means to save the costs are either too expensive or do not save enough to make sense economically. Sounds depressing, doesn’t it? But not for long; Fourdeg is developing a product for water radiators heated buildings that will ensure both the energy savings as well as improved comfort temperature control with a superfast investment payback. Even better, the product can be installed within minutes and installation doesn’t require professional training. If something, that’s better with less.

Fourdeg system allows energy savings in heating up to 30% through intelligent self-learning cloud driven heating optimization algorithms. In addition customers benefit from full control of the system through web and mobile as well as better living comfort through significantly improved temperature accuracy.

Fourdeg system allows energy savings in heating up to 30% through intelligent self-learning cloud driven heating optimization algorithms. In addition customers benefit from full control of the system through web and mobile as well as better living comfort through significantly improved temperature accuracy.

Before the investment Fourdeg had built first prototypes and secured first pilot customer.

”We saw from the beginning that our smart heating control system and evident demand combines as an inspiring market opportunity. But that’s not enough for a successful start-up. To thrive through the growth phase startup needs to have right kind of expertise and sufficient resources. Butterfly makes us a perfect partner by providing the both; financial resources as well as the competence.” (Markku Makkonen, CEO of Fourdeg, Inc.)

Intelligent cloud controlled thermostat that is easy to install, even by end customers, is at the core of the Fourdeg offering.

Intelligent cloud controlled thermostat that is easy to install, even by end customers, is at the core of the Fourdeg offering.

Butterfly invested into Fourdeg because of their clear value proposition, huge market potential and because the product allows use of truly revolutionary distribution channel. The Fourdeg team is leanly operating well balanced mixture of talent and it has shown commitment and ability to learn fast. Butterfly investment will be used to develop the first product version for the pilot and to validate value proposition, especially the cost savings related to the product.

Case: WhileOnTheMove

While On The Move logoThe first product of WhileOnTheMove is Daisy – a complete day care solution. Daisy includes mobile applications to day care employees and child-minders, mobile/web service to day care management and mobile/web service to parents. Real life tests have shown that in a city of 100 000 habitants Daisy can relocate over 65 000 hours of manual paperwork into more important tasks; taking care of the children. Furthermore a single 24/7 daycare unit can save up to 180 000€ a year by deploying Daisy to allow parents easily inform their weekend day care needs. This value proposition together with the fact that Europe alone represents over 100 million euro market potential for such product clearly makes the case.

Before the investment WhileOnTheMove has launched their product, secured several major customers, such as cities of Oulu and Jyväskylä as well as partnered with market leading distributor in France, who has already made the first sale there.

”From the very beginning WhileOnTheMove has targeted to international markets. Today we have closed our first international partner agreements and deals. The next step is to boost even more on international sales. To achieve the goal we need both funding and guidance. We see Butterfly as a perfect partner helping us in both.” (Kari Kivistö, CEO of WhileOnTheMove)

Butterfly invested into WhileOnTheMove because their product offers good fit to market requirements that are changing and clear cost saving value proposition. The product is launched; gaining traction; and already agreed sales provide significant and relatively long term revenue. Furthermore, the WhileOnTheMove team has shown significant personal commitment and demonstrated their ability to deliver. Butterfly investment will be used to speed up the sales, especially internationally.

Case: Cadfaster

Cadfaster LogoUse of 3D information is growing and the models used are getting more complex. Furthermore it’s not just the designers running heavy duty workstations, but many different kinds of interest groups, such as construction workers at the construction site, who need to access and collaborate with the models. CadFaster enables this in real time with a Dropbox type of business model. Their technology is more efficient than any other on the planet, enabling the use of even the most detailed models also on mobile devices such as iPad.

Due to its cloud based optimizations MyCadbox is the fastest 3D visualization engine on the planet. It can handle gigabyte level models also on mobile devices such as iPad.

Due to its cloud based optimizations MyCadbox is the fastest 3D visualization engine on the planet. It can handle gigabyte level models also on mobile devices such as iPad.

Already before the investment CadFaster had launched MyCadbox service, secured a partnership with Vectorworks as well as significant number of beta users, including some from organizations such as Foster and Partners.

”CadFaster is employing a modern business model and lean customer centric product development methods. Therefore we also needed an investor who really understands these. The real added value investor makes the difference. The role of Butterfly while creating our business model and moving towards lean startup practices has been instrumental already before the investment.” (Raimo Kuismin, Chairman of CadFaster, Inc.)

Cadfaster's MyCadbox facilitates easy sharing of 3D models and collaboration with them.

Cadfaster’s MyCadbox facilitates easy sharing of 3D models and collaboration with them.

Butterfly invested into CadFaster because they’re able to answer the customer need of real time 3D data collaboration with technologically advanced low barrier of entry product that is built on modern business model. This allows introduction of new customer segments into real time 3D data collaboration and thus significant growth potential. Reference customers and install base as well as proven 3D technology knowledge and a balanced team with experience were important factors as well. Furthermore, there are plenty of potential exit targets that have a history of acquisitions. Butterfly investment will be used to validate the new Dropbox like business model as well as establish the required metrics to leverage the valuation up for exit.

Butterfly Ventures Invests Into New Startups

The ramp up of Butterfly Ventures investment activities continues at high pace; it has selected four new investment targets. The companies are: CadFaster, WhileOnTheMove, CaddieON and Fourdeg. With Butterfly Ventures investing in them, the companies will speed up their market-entry and accelerate their internationalization.

CadFaster is employing a modern business model and lean customer centric product development methods. Therefore we also needed an investor who really understands these.” told Raimo Kuismin, Chairman of CadFaster, Inc., “The real added value investor makes the difference. The role of Butterfly while creating our business model and moving towards lean startup practices has been instrumental already before the investment.” he added.

The first investment rounds vary between approximately 40 000 and 250 000 euro, from which the Butterfly Ventures share varies from 20 000 to nearly 70 000 euro. In addition, parties have agreed on the milestone tied follow-on funding that may increase the total investment of Butterfly Ventures up to 500 000 euro per company.

One can divide the investment targets roughly into two distinct groups; pre-seed stage companies where our investment enables the first stages of product development and seed stage companies where the focus is on product and business model validation.” said Matti Kanninen, CEO of Butterfly Ventures.

Butterfly Ventures will make first time investments in approximately ten new target companies per year. Due to investments announced now the number of invested companies rises up to seven for the year 2013. Furthermore, as some of the portfolio companies have already met the performance targets set for the follow-on investment round, follow-on investments are becoming current.

Enquiries and additional information

Matti Kanninen, managing partner
Phone: +358 (40) 5455877
Email: matti@butterfly.vc

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, Antti Kosunen and Juho Risku as well as Board members Jukka Mäkinen and Jari Pasanen. Butterfly Ventures has offices in Oulu and Helsinki.

Web: http://butterfly.vc

Northern Startup Fund

Northern Startup Fund is a venture capital fund managed by Butterfly Ventures that invest into early stage startups. It is the first asymmetric fund in Finland. In the case of Northern Startup Fund 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 investment capital of Northern Startup Fund will be 10 million €, half of which comes from the City of Oulu and the other half from private investors.

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