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.

Butterfly Ventures Invests Into New Startups

The ramp up of Butterfly Ventures investment activities continues at high pace; it has selected four new investment targets. The companies are: CadFaster, WhileOnTheMove, CaddieON and Fourdeg. With Butterfly Ventures investing in them, the companies will speed up their market-entry and accelerate their internationalization.

CadFaster is employing a modern business model and lean customer centric product development methods. Therefore we also needed an investor who really understands these.” told Raimo Kuismin, Chairman of CadFaster, Inc., “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.” he added.

The first investment rounds vary between approximately 40 000 and 250 000 euro, from which the Butterfly Ventures share varies from 20 000 to nearly 70 000 euro. In addition, parties have agreed on the milestone tied follow-on funding that may increase the total investment of Butterfly Ventures up to 500 000 euro per company.

One can divide the investment targets roughly into two distinct groups; pre-seed stage companies where our investment enables the first stages of product development and seed stage companies where the focus is on product and business model validation.” said Matti Kanninen, CEO of Butterfly Ventures.

Butterfly Ventures will make first time investments in approximately ten new target companies per year. Due to investments announced now the number of invested companies rises up to seven for the year 2013. Furthermore, as some of the portfolio companies have already met the performance targets set for the follow-on investment round, follow-on investments are becoming current.

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, Antti Kosunen and Juho Risku as well as Board members Jukka Mäkinen and Jari Pasanen. Butterfly Ventures has offices in Oulu and Helsinki.

Web: http://butterfly.vc

Northern Startup Fund

Northern Startup Fund is a venture capital fund managed by Butterfly Ventures that invest into early stage startups. It is the first asymmetric fund in Finland. In the case of Northern Startup Fund 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 investment capital of Northern Startup Fund will be 10 million €, half of which comes from the City of Oulu and the other half from private investors.

Resources

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