Butterfly Ventures continues investment activities at a high pace. During the first half of 2014 its total investment volume tripled. Butterfly has now invested, together with its co-investors, 6M euro in total. Compared to the whole year 2013, the growth is more than 4.5M euro. New portfolio companies during the first half of 2014 are: Realsource, Naturvention, Sapotech, Sarokal Test Systems, Pint Please and Kyynel. One of the cases will remain un-published at this stage.
”We have reached a good pace in our investment activities. Our efficiency is based on the due diligence investment model we’ve developed. It allows us to invest into startups with high return expectations swiftly and cost-efficiently already very early on. It also mitigates the risks associated with a single investee company.” says CEO of Butterfly Ventures, Matti Kanninen, “The quality of startups in our dealflow has been a positive surprise. I trust we can further increase our investment volume next year. The progress of our portfolio companies also creates opportunities for follow-on investments including larger rounds. We will make additional 4-5 first time investments as well as several follow-on investments into our portfolio before the end of this year. Our own investment volume thereby increases to some three million euro.”
Currently, the portfolio of Butterfly consists of 17 companies. They have been selected from the analyzed 450 companies, out of which 25% have been looked at more closely as investment targets. At the time of Butterfly’s first investment, 20% of the portfolio companies had revenue. Approximately 6 months thereafter, roughly 80% of them had revenue. Butterfly’s portfolio companies employ approximately 100 people in total.
”The due diligence investment model has worked very well, so far there hasn’t been any really serious setbacks. Of course some of those are expected as well. Otherwise we would probably have taken too little risk.” says Juho Risku, who leads the startup development at Butterfly, “We are actively discussing with international investors and it seems that our portfolio companies gather also wider interest. In some cases we already have to even think who will fit into investment round.”
Enquiries and additional information
Matti Kanninen, managing partner
Phone: +358 (40) 5455877
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.