Case: Pint Please

Pint Please logoMicrobrewery phenomena has opened ever expanding number of options for beer drinkers, but how to choose what to drink and where to go to? Pint Please is a mobile application that makes it easy, it recommends the beer based on ones’ taste and shows the availability on pubs. In essence, Pint Please is leveraging the long tail phenomena, where people’s tastes are dividing into smaller segments and at the same time creating a need for personally tailored information. Beer industry, including the pubs, is a huge industry involving hundreds of millions consumers and xx of marketing money. While Pint please offers a convenient marketing channel for beer industry and pubs, it also allows the consumers easily find what they like. It’s a true win-win for both.

Pint-Please-3-in-one

Pint Please makes it easy to find the beer you like and the venues selling it. Pint Please recommends the beer according to your previous taste.

Prior to Butterfly’s investment Pint Please had made a test launch in Finland with promising metrics, acquired several paying customers and secured the key partnerships for UK launch.

“We love the beer and Pint Please is in the heart of one of the biggest trends in the world, the long tail. Traditional marketing has been just push, push, push -type, whereas Pint Please is really about the ones taste and allowing pubs and breweries to meet the taste. Everyone wins; we, beer lovers get better beer, breweries will know what kind of beer they should brew and pubs know what they should offer. At the same time, it’s a hundred million market opportunity. We’ve kept the Butterfly guys in the loop from the very beginning. The ongoing dialogue with them has helped us along the way a lot for instance with the business model. It seemed just natural to bring them in, when we had initial market proof and felt we’re ready for going international.” (Juha Karppinen, CEO of Pint Please)

Butterfly invested into Pint Please because of very promising business model with huge market that has shown to be able to generate significant revenue early on, already without millions of users they’re aiming at. This type of monetization capability is very rare among mobile applications. Furthermore the team represents excellent mix of technological and marketing talent as well as enthusiasm towards beer. The communication and co-operation has been easy. Butterfly’s investment will be used for UK launch and further development of the application as well as securing the first major international customers.

The investment volume of Butterfly Ventures tripled from last year

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
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.

Resources

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