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

Download PDF: EN, FI

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.