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.

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
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, 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.

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.

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