First investment by Butterfly Venture Fund III in Proximi.io

Butterfly Ventures has just closed its first investment from their latest fund, Butterfly Venture Fund III. The company invested in Proximi.io, an easy-to-use positioning platform that acts as a glue between the physical world and mobile devices, connecting all existing mobile positioning hardware and software into one developer-friendly product. The investment is syndicated with previous investors, a group of Finnish and Danish business angles.

“Proximi.io operates in a very interesting and one of the fastest growing market segments, mobile positioning. Indoor positioning alone is estimated to grow from 4 billion to 23 billion USD during the next five years.” explains Juho Risku, Founding Partner at Butterfly Ventures “Proximi.io is a well packaged, easy to use product and is capable of offering first class customer support. Both facts have been confirmed by the customers we interviewed. Additionally, the customer traction as well as other early growth metrics look promising. It’s also refreshing to see a female entrepreneur in the startup scene.”, he adds.

Since it’s launch in January 2017, Butterfly Venture Fund III aims to invest in 10 new portfolio companies annually for the next four years. Like in the case of Proximi.io, which is a late seed case, the entry point of Butterfly Ventures is typically a bit earlier than most venture funds, at the seed or even early seed stage. The fund is focused on hardware and software directly interfacing with hardware and deep tech companies.

“We’re aiming high; We’re going to be the go-to platform for enterprises and mobile developers for implementing positioning. Butterfly Ventures shared our vision. We also saw their expertise in the intersection of hardware and software, their strong portfolio and their international reach as invaluable assets to us. As it happens, our offices are also located next to each other at the Maria 0-1 startup hub. The co-operation will certainly be very efficient.” says CEO and Co-founder of Proximi.io, Annina Koskiola.

Enquiries and additional information

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

Resources

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Case: Fjuul

Fjuul LogoFjuul is a mobile app that turns everyday activities into meaningful exercise. It provides guidance for changing daily behavior and building healthy routines to feel energized and keep in shape. Unlike most of the existing apps and gadgets the Fjuul technology has a strong scientific foundation. It translates daily, casual movement into a new measurement unit called Fjuul Points – a universal “currency” of healthy activities. They measure the intensity of movements and related energy consumption (in medical units called METs). In other words, instead of just counting the steps one takes, with Fjuul users can realize the difference of the daily choices they make, such as taking the stairs instead of using the elevator – they can now learn how the mix of intensities impact their exercise levels. This makes an excellent platform for bringing more value to the millions of mainstream users.

Fjuul offers great user experience and it has been globally featured numerous times.

Fjuul offers great user experience and it has been globally featured numerous times.

Prior to Butterfly’s investment Fjuul had released a second version of its top rated mobile app, which had been globally featured by Apple frequently, secured pre-install deal of the demo app with Apple retail stores as well as being hand-picked as one of the few partners during the Apple Watch launch.

“We appreciate the open communication we have had from day one with the Butterfly team and quickly learned that we get a lot of ideas and expertise on our business model, the proper metrics, and how we could jointly move Fjuul towards our set monetization schemes. In particular, we feel that we get ‘out of the box’ thinking, a down to earth partnership, and a creative approach for further value creation, including some synergetic options within the current portfolio investments and related learnings.” (Sascha Wischek, CEO of Fjuul)

Butterfly invested into Fjuul because they have been able to package the value beyond the steps into a great user experience that could appeal even to the mainstream user groups that aren’t interested of traditional testosterone packed sports tracking applications. This is also confirmed by their strong relationship with Apple. In addition, Fjuul shows very promising metrics and extraordinarily active core user group. They have a great experienced team that has demonstrated their execution capability as well as V3 plans with an appealing value proposition. Butterfly’s investment will be used to develop and launch the V3 product suite and test the new business model and value proposition.

Case: Foodiac

Foodiac LogoConsumers and businesses want more unique and personal dining experiences. At the same time chefs would like to make name and have variety for their work which typical restaurant job doesn’t offer, as well as earn some extra income. Foodiac is a service to facilitate this, it allows anyone to book the best chefs around to cook at their home or corporate events. For chefs it allows easy end-to-end management of customer flow. Foodiac will disrupt the whole $33 billion in-home catering and $36 billion B2B event catering markets, while also challenging the fine-dining restaurants globally.

Foodiac connects the best chefs around with the consumers.

Foodiac connects the best chefs around with the consumers.

Prior to Butterfly’s investment Foodiac has proven the business model locally in Finland by attracting nearly 100 service providers, generating superb metrics, including >1000% google ads ROI, nearly 100k€ incoming monthly RFQs and over 150k€ worth of revenue.

“The market of in-home and event catering are completely untapped markets. Also the restaurant industry has trouble matching the growing requirements of customers. We at Foodiac noticed this opportunity and the response from the markets has been amazing. We’re glad to have Butterfly backing us both financially and with the wide experience they have in growing startups. We just launched in United Arab Emirates and the metrics look even better than in Finland. We are further expanding the concept to Germany in 2015 and using the knowledge of Butterfly to plan the next steps in conquering the world.” (Miikka Mäkiö, CEO of Foodiac)

Butterfly invested into Foodiac because of very professionally carried proof of business pilot in Finland with extraordinary metrics. The team is hard working, smart, agile and capable of delivering results professionally. Butterfly’s investment will be used to validate the business model in international markets outside of Finland.

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: 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: 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.