Case: Kyynel

Gold_ball_hiresKyynel will change the way data is being transferred in remote areas. They are able to provide global coverage and offer similar or better quality of service than satellite communication does, without the cost of operating satellites. Kyynel’s solution requires only a low-cost radio system to provide global connectivity. This bestows huge value for e.g. shipping industry, which is currently heavily dependent on satellites. The satellite data communications is an industry worth of billions. Kyynel’s market opportunity lies in taking over the vast majority of it.

Kyynel provides state of the art high frequency terrestrial data communications system to replace the satellite data.

Kyynel provides state of the art high frequency terrestrial data communications system to replace the satellite data.

Prior to Butterfly’s investment Kyynel has developed and protected a huge technology base around the field necessary for the service. They also have developed the initial product versions required and secured a couple of significant pilot customers.

“Early days of radio relied mainly on longer wavelengths which allow to cover longer distances. However, there have been several data density and reliability issues when transferring data using traditional radio systems, making most commercial users change to satcom and other systems. In Kyynel we have been able to solve the usability problems of traditional radio systems, making it possible to offer a global connectivity that is reliable, secure and always online. We have been discussing with Butterfly for over a year and have strong confidence in their ability to help while going international. Now that it’s time to launch we felt it was also the right time to take them on board to help to do it successfully”, (Toni Lindén, CEO of Kyynel)

Butterfly invested into Kyynel because of the unique market opportunity and Kyynel’s extraordinarily deep knowledge of the field. In addition there is a strong IPR portfolio, existing industry with ongoing budgets, business model with a steep monetization curve and technology that allows to go around most critical mass challenges faced by other similar exercises. Butterfly’s investment will be used for further development of the commercial product, launching the service and securing the first few international customers.

Case: NaturVention

NaturVention logoNaturVention has developed a fully automated living green wall that cleans the indoor air from multitude of harmful substances exactly the way nature does, by using living plants. Even more so, they’ve come up a way to make the process 100 fold more efficient. Furthermore the system naturalizes indoor air breaking harmful chemicals, increasing the amount of natural chemicals and oxygen in the air and ensuring healthier humidity levels. By doing this they have been able to eliminate many of the indoor air quality related problems, for instance reducing sick leaves in many occasions, not to mention the improved quality of life for people involved. The market opportunity is simply put huge, there are billions of people suffering of bad quality indoor air on daily bases, especially in Asia.

Greenwall in a lobby

Greenwall naturalizes the indoor air using living plants. It does it by breaking harmful chemicals, increasing the amount of natural chemicals and oxygen in the air and ensuring healthier humidity levels.

Prior to Butterfly’s investment NaturVention had developed the first product with over 98 % test to purchase conversion and >500k€ worth of revenue. Their customer base is very satisfied. They had also filed international patent application for the key parts of the technology involved.

“According to WHO unhealthy indoor air is one of the biggest health challenges of the world today. While the original idea of plants purifying air in enclosed ecosystems is based on NASAs research from 1970s, we took the initial ideas to the next level, and were able to solve a bunch of technological challenges that made the actual active green wall possible. We wanted Butterfly along, as they have great international networks, action-oriented way of operating as well as plenty of needed knowledge of scale-up and marketing. Furthermore they had an excellent reputation among their portfolio companies.” (Aki Soudunsaari, Co-Founder & COO of Naturvention)

Butterfly invested into NaturVention because of their ability to solve a problem with huge, tens of billions, market opportunity. The team has done excellent job while addressing many of the challenges related into such complex product combining living plants, mechanics, hardware and software as well securing the first satisfied customers. Furthermore Butterfly saw a clear opportunity to bring in added value to the case in the areas of marketing, market requirements, business models and international networks. Butterfly’s investment will be used for releasing a more scalable product version, as well as preparing for international scale-up.

Case: Sapotech

Sapotech logoMonitoring super-hot processes, like casting steel, has traditionally been problematic. Due the extreme heat and constant motion one cannot actually see what’s happening inside the processes and traditional camera-systems just can’t take it either. Yet whenever there’s a problem undetected it may cost hundreds of thousands or even millions to a steel mill. Sapotech has invented a laser based imaging solution that allows one to see with unprecedented detail into hot processes. More importantly, due their novel hardware, industrial internet software platform and SAAS -based business model, they’re able to install the system as well as prove the value for the steel mill within days. The approach makes sales cycles extremely short. It’s revolutionary concept in traditionally slow moving industrial automation industry.

Reveal Cast screen capture

The SAAS based software platform provides excellent ease of use for operator. It makes it easy to identify the defects and react early on when ever needed.

Prior to Butterfly’s investment Sapotech had launched their first product, secured multiple pilot customers in the Nordics and several hundred thousands of revenue, as well as filed patent applications for the key technologies.

“For some reason industrial automation and modern service based business models generally haven’t yet met. We’ve been able to marry a few things, unique hardware, our own industrial internet software platform and steel industry expertise into a world class service offering. These ingredients allow us to execute a rapid scale-up into a market that’s worth of billions. Butterfly brings in not just money now and networks needed for follow-on financing later, but also business model expertise, knowledge of IPRs and experience on scaling up businesses internationally. Their support while facing the challenges of ramping up global service business is truly valuable.” (Saku Kaukonen, CEO of Sapotech)

Butterfly invested into Sapotech because of proven customer traction and industry disruptive business model with market potential of billions. The product is mature, fast to deploy and provides instant value to the customer. Furthermore the founder team has very deep knowledge and networks within steel industry as well as rare combination of expertise required; industrial internet, machine vision and user experience. Butterfly’s investment will be used to further confirm the business model, ramping up the customer acquisition as well as developing follow-on products that leverage the existing software platform.

Case: Sarokal Test Systems

Sarokal Test Systems logoWith traditional testing equipment every product generation has required new set of testing equipment as well, costing hundreds of thousands or even millions for network equipment manufacturers. Sarokal has created a new kind of testing equipment platform to test network interfaces where software plays a major role, therefore requiring only minimal hardware update. This novel approach doesn’t just save money between product generations, but also enables multiple uses of same equipment within organization as well as totally new use cases for testing. For instance hardware testing as a part of ongoing embedded software development has often been just too expensive. There’s a hundred million dollar market for equipment like this and Sarokal’s software oriented approach makes them very cost efficient as well as allows faster than usual scale-up due these additional use cases within organization.

Sarokal Tester

Sarokal provides maximum performance and feature set for network interface testing with easily upgradeable hardware and software.

Prior to Butterfly’s investment Sarokal had finalized the first product version, acquired their first major telecommunications customer and secured multiple pilot customers.

“Most of the testing equipment manufacturers for telecommunications industry has been very traditional, hardware oriented and extremely expensive. Every new product generation also requires new set of testers. Our products do most of the stuff with software and therefore offer better functionality, lower cost and a possibility to upgrade with minimum hardware changes. There’s also an added benefit. Our system can be scaled up easily and cost efficiently, thus making more extensive hardware testing along the ongoing software development possible, which hasn’t been previously possible. Butterfly will bring in needed resources for scaling up the business.” (Harri Valasma, CEO of Sarokal Test Systems)

Butterfly invested into Sarokal because their target market is large and the early indicators of customer traction they have. Sarokal has also been able to develop a very complicated product into launch ready stage with novel software based approach. Furthermore, team has the right background for tapping into testing equipment market, both from business as well as tech point of view. Butterfly’s investment will be used to confirm the business model by acquiring additional key customers and development of next product version.

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.

Case: NWG Tools

NWG Tools logoTiling in construction sites is traditionally labor intensive and requires plenty of manual work. NWGTools has invented a patent pending method that will improve the efficiency of tiling by 20-150%. As the construction business is heavily competed and margins of subcontractors low the efficiency increase means over 200% increase in the margin of an average tiling contract. With such market dynamics there’s no one who could afford not to use NWGs method once it’s launched. That’s a real revolution in the tiling.

A-tile makes tiling over 100% more efficient than using traditional methods. That's several hundred percent increase in margin of a tiling contractor.

A-tile makes tiling over 100% more efficient than using traditional methods. That’s several hundred percent increase in margin of a tiling contractor.

So far NWGTools has built a proof of concept product which has been able to prove the efficiency increase in a real construction site on a real tiling contract.

”At first we were contemplating between traditional angel investor and Butterfly Ventures. Fairly soon it became evident however, that Butterfly, due to their experience and business knowledge, would be a superior partner – also for the longer run. The benefits were clear. Already before the investment Butterfly helped us to develop an excellent way to protect our business and intellectual property rights.” (Sami Jussinniemi, CEO of NWGTools)

Butterfly invested into NWGTools because the value proposition is exceptionally clear and simple. NWGTools has found a really neat way to patent the key technology and unlike most cases it seems to be both difficult to go around and easy to enforce. Furthermore the market potential for such product is several hundred millions. The team has excellent industry expertise as well as demonstrated commitment and capability of operating lean. Butterfly investment will be used to build the first commercial product version, further validate the value proposition with the customers and acquisition of key reference customers.