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: 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: Realsource

Realsource logoRealsource is a commercial real estate marketplace. It is an online service for investors to find commercial real estate and a very efficient way of selling commercial real estates for sellers. For the investor Realsource gives all the information the investor needs to decide to commit to a bidding process. On the other hand it helps the seller find as many potential investors as possible thus helping to get better selling price. The total annual transaction volume in commercial real estate sector was between 30-35 billion USD in the Nordics and appr. 200 billion USD in 2013 in the EMEA, the trend being rising. Based on current agreements Realsource will get 0.2% of transaction volume. This results 70M revenue potential in Nordics alone and 400M in Europe.

Realsource scenario calculator

For buyer Realsource provides advanced tools for comparing the commercial properties and making smart purchase decisions.

Prior to Butterfly’s investment Realsource had developed fully functional beta site and secured a major Finish property owner as a customer for the first year.

“Internet has transformed almost every line of business, including most of real estate sector. For some reason, however, commercial real estate sector is still mostly relying on traditional ways of doing business. We’re going to disrupt that. One of Butterfly’s strengths is their knowledge of online businesses, that’s exactly what we need. We also liked their agile approach to business development as well as international networks.” (Markku Aho, Founder of Realsource)

Butterfly invested into Realsource because of balanced team with both excellent technological skills and experience as well as extraordinarily deep understanding of commercial property market. The product has very mature feel with unique set of features not seen yet in online commercial property trade. Furthermore Realsource had first significant customer signed in and there’s market opportunity worth at least hundreds of millions. Butterfly’s investment will be used to further develop the product, attract property inventory as well as validate the business model and value proposition.