Ten new investments in year 2013, equity under management grows into ten million euro

Butterfly Ventures continues investment activities at high pace. During its first year of operations 2013 it has completed its own target of ten new first time investments. The newest investments are: CreateTrips, Laturi Corporation and Conexbird. Furthermore, with the agreement signed today Butterfly Ventures has increased the amount of equity under management by five million euro, totaling now ten million euro.

“Butterfly has started really well also from the City of Oulu’s point of view. The investments have been made in particular into early stage startups, and the positive effects of Northern Startup Fund are already evident.” told Juha Ala-Mursula from Business Oulu. “At the time of investment two of the startups had revenue, now eight of them have. Also the fact that the number of employees after the investment in these companies has already increased nearly 30% is great news for Oulu.” he added.

Based on the actual realized figures, the fund size of ten million euro adds up to some twenty million euro worth of equity financing in total.

”We’re very happy for the increase of funds under our management at this particular moment, as the prospects for new first time investments are great. This is good news also for our portfolio companies. Several of them are approaching a stage where their business model has been validated and therefore follow-on investments are becoming current. Butterfly is now better equipped to support its portfolio companies through this rapid growth phase, which brings stability for the companies and further accelerates their growth.” said Matti Kanninen, CEO of Butterfly Ventures.

So far, Butterfly has invested together with other investors in total of 1.4M euro into ten portfolio companies. Of this amount Butterfly has invested 600 000 euro. In addition to local investors, also US angel investors have participated in the financing rounds. The portfolio companies were selected from the deal flow of 300 companies. Butterfly aims to do ten new first time investments also during 2014. In addition, the annual volume of investments is planned to grow into 1-3 million euro.

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 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.

Resources

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Case: Conexbird

Conexbird logo Conexbird logo[/caption]Containers do over 135 million overseas trips per year. During every fifth of those trips something goes wrong, for instance due to container condition, accumulating over 7 billion in damages annually. Conexbird has invented a method to inspect the changes in container condition and its contents within a few seconds while lifting the container simply by touching it. There is no heavy investment required for checking equipment and no interruption nor changes required to handling and logistic chain. Furthermore the cost per check is just a fraction compared to any other method currently available. This represents true quantum leap within container transportation business, not just cost of container maintenance point of view, but also what comes to costs related to smuggling and container security.

Prior to Butterfly’s investment Conexbird has filed the key patent and signed the first pilot customer agreement.

“Our container inspection methodology fits into logistics chain like glove, it will integrate there seamlessly. Furthermore, the investment and inspection costs are only fraction of other methods. Therefore we see Conexbird as an integral part of all container logistics, a market opportunity of several billion dollars. Butterfly will bring us international contact networks that we need and such a unique level of agile business development expertise that’s very hard to find elsewhere.” (Teuvo Heikkilä, Founder of Conexbird).

Butterfly invested into Conexbird because of their clear cost saving value proposition, advanced business model, customer traction and technologically unique solution with strong intellectual property that fits extremely well into existing container logistic processes. Furthermore there’s market opportunity worth of hundreds of millions as well as excellent team with great international contact network. Butterfly’s investment will be used to validate the technology, business model and value proposition with first pilot customers.