Case: Fjuul

Fjuul LogoFjuul is a mobile app that turns everyday activities into meaningful exercise. It provides guidance for changing daily behavior and building healthy routines to feel energized and keep in shape. Unlike most of the existing apps and gadgets the Fjuul technology has a strong scientific foundation. It translates daily, casual movement into a new measurement unit called Fjuul Points – a universal “currency” of healthy activities. They measure the intensity of movements and related energy consumption (in medical units called METs). In other words, instead of just counting the steps one takes, with Fjuul users can realize the difference of the daily choices they make, such as taking the stairs instead of using the elevator – they can now learn how the mix of intensities impact their exercise levels. This makes an excellent platform for bringing more value to the millions of mainstream users.

Fjuul offers great user experience and it has been globally featured numerous times.

Fjuul offers great user experience and it has been globally featured numerous times.

Prior to Butterfly’s investment Fjuul had released a second version of its top rated mobile app, which had been globally featured by Apple frequently, secured pre-install deal of the demo app with Apple retail stores as well as being hand-picked as one of the few partners during the Apple Watch launch.

“We appreciate the open communication we have had from day one with the Butterfly team and quickly learned that we get a lot of ideas and expertise on our business model, the proper metrics, and how we could jointly move Fjuul towards our set monetization schemes. In particular, we feel that we get ‘out of the box’ thinking, a down to earth partnership, and a creative approach for further value creation, including some synergetic options within the current portfolio investments and related learnings.” (Sascha Wischek, CEO of Fjuul)

Butterfly invested into Fjuul because they have been able to package the value beyond the steps into a great user experience that could appeal even to the mainstream user groups that aren’t interested of traditional testosterone packed sports tracking applications. This is also confirmed by their strong relationship with Apple. In addition, Fjuul shows very promising metrics and extraordinarily active core user group. They have a great experienced team that has demonstrated their execution capability as well as V3 plans with an appealing value proposition. Butterfly’s investment will be used to develop and launch the V3 product suite and test the new business model and value proposition.

Case: Foodiac

Foodiac LogoConsumers and businesses want more unique and personal dining experiences. At the same time chefs would like to make name and have variety for their work which typical restaurant job doesn’t offer, as well as earn some extra income. Foodiac is a service to facilitate this, it allows anyone to book the best chefs around to cook at their home or corporate events. For chefs it allows easy end-to-end management of customer flow. Foodiac will disrupt the whole $33 billion in-home catering and $36 billion B2B event catering markets, while also challenging the fine-dining restaurants globally.

Foodiac connects the best chefs around with the consumers.

Foodiac connects the best chefs around with the consumers.

Prior to Butterfly’s investment Foodiac has proven the business model locally in Finland by attracting nearly 100 service providers, generating superb metrics, including >1000% google ads ROI, nearly 100k€ incoming monthly RFQs and over 150k€ worth of revenue.

“The market of in-home and event catering are completely untapped markets. Also the restaurant industry has trouble matching the growing requirements of customers. We at Foodiac noticed this opportunity and the response from the markets has been amazing. We’re glad to have Butterfly backing us both financially and with the wide experience they have in growing startups. We just launched in United Arab Emirates and the metrics look even better than in Finland. We are further expanding the concept to Germany in 2015 and using the knowledge of Butterfly to plan the next steps in conquering the world.” (Miikka Mäkiö, CEO of Foodiac)

Butterfly invested into Foodiac because of very professionally carried proof of business pilot in Finland with extraordinary metrics. The team is hard working, smart, agile and capable of delivering results professionally. Butterfly’s investment will be used to validate the business model in international markets outside of Finland.

Case: Fabula

fabula-text-logo-11.8.2015Fabula is an e-books app that allows unlimited access to their e-books inventory through a Spotify type of subscription model. While being very attractive to consumers, their business model fits perfectly for publishers as well. While many players have tried to put together a successful e-books mix, Fabula has nailed to the spot on, giving them a great chance to succeed in billion dollar e-books market.

Fabula offers a great reading experience and an unlimited access to their fast growing inventory of titles (currently >12k titles) through a simple Spotify type of subscription.

Fabula offers a great reading experience and an unlimited access to their fast growing inventory of titles (currently >12k titles) through a simple Spotify type of subscription.

Prior to Butterfly’s investment Fabula has developed the first version of their mobile app, successfully launched the service and taken the leading position in the Latvian e-books subscription market. They have great business metrics, very loyal customer base with high customer lifetime value and their inventory consists of nearly all the publishers in the Latvia.

“Subscription services, like Spotify and Netflix, have taken the market in music and video. However in e-books this is yet to be happen. The fact that people like to read on their own language and lower cost of entry has kept the market more fragmented, furthermore the current business models do have a good fit from publishers’ point of view. We have solved the problem, Fabula is currently leading e-books subscription service in Latvia and our aim is to tap into billion dollar e-books industry and repeat that success in the rest of the world. From our point of view Butterfly is a perfect investor, they have a very constructive hands on approach, provide experience, market knowledge, connections and mentoring. Furthermore their agile approach into business development is a great plus while prioritizing and setting targets to reach the global market and scale up rapidly.” (Eldar Sharafutdinov, CEO of Fabula)

Butterfly invested into Fabula because their business model addresses the needs of different stake holders very well. This is also backed by their metrics. Furthermore they have an excellent hard working team with plenty of ambition. Butterfly’s investment will be used to scale the service and validate the business model in international markets outside of Latvia.

Case: OptiWatti

OptiWatti_LOGO_mintgreen_CMYKHeating and cooling are one of the most significant usages of energy in a household. At the same time most of the current electric heating systems are fairly simple, they don’t take into account factors like thermal capacity or usage patterns of the space, nor weather forecasts. OptiWatti is a fully automated system to optimize the heating that can save up to 50% of the heating costs. At the same time it improves the comfort and control by providing a very user friendly mobile app that makes the control and adjustments of the system a breeze.

OpttiWatti provides a extremely easy to use user interface for both mobile and desktop, that makes the monitoring and controlling of the indoor temperature a breeze.

OpttiWatti provides a extremely easy to use user interface for both mobile and desktop, that makes the monitoring and controlling of the indoor temperature a breeze.

Prior to Butterfly’s investment OptiWatti had launched the first version of the product generating 40k€ of monthly revenue with very satisfied customer base, filed patent application for core IP and secured growing reseller network in Finland.

“Energy efficiency has major impact into our everyday life. Pressure to find new ways to save energy and balance demand-response is growing. According to EU commission, the market size for demand-response alone in Europe is more than €100 Billion. Our mission is to provide easy and effective solutions to this challenge. We’ve introduced a hassle-free room level heating optimization, which is the most effective way to implement demand-response. Butterfly is a perfect partner for us in addition to financial resources, they’re providing international expertize and energizing support.” (Juha Marjeta, CEO of OptiWatti)

Butterfly invested into OptiWatti because of their great team with plenty of business experience and the product that has an excellent user experience and very promising traction. Furthermore OptiWatti has a significant market opportunity not just in Scandinavia, but also internationally. Butterfly’s investment will be used to scale up the sales in Finland and test the traction internationally.

Case: Movesole

movesole-logoA leg injury means time wasted from exercise. Immobilizing the movement is the fastest treatment for most injuries, but the speed and quality of recovery can be enhanced by progressively increasing the leg mobility. However, it’s very difficult to say, what’s enough and what’s too much. Movesole app and smart insole tells it exactly, by making a very accurate map of underfoot pressure on each step. This cuts required recovery time and cost. Furthermore Movesole can help for example casual athletes while fine tuning their running style.

Movesole app and smart insole gives a clear accurate map of the underfoot pressure. The information is crucial while optimizing the recovery from leg injury.

Movesole app and smart insole gives a clear accurate map of the underfoot pressure. The information is crucial while optimizing the recovery from leg injury.

Prior to Butterfly’s investment Movesole had developed a technology proof of concept version of the product and secured the first major customers.

“Rehabilitation is our first target market. However the biggest opportunity we see in normal people’s exercise. There are over 100 million running shoes sold annually in US and Europe alone. The trend of measuring more and more of our daily life together with technology development will take us to next phase where Movesole insoles will be part of everyday exercises, regardless what your exercise method is. Butterfly’s team’s understanding of how to successfully scaling business have been and will be very useful support for us.” (Eero Kaikkonen, CEO of Movesole)

Butterfly invested into Movesole because they had a great balanced team with plenty of HW, SW and startup experience, as well experience and existing contacts to their first target segment, medical rehabilitation industry. They have an excellent product concept with a large market opportunity and room to scale up to consumer markets as well. Butterfly’s investment will be used for launching the first product version and validating the business model and market opportunity.

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: 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.

Just another day as a VC

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Vesa and Juho after swim

We were swimming in ice together with the team of one of our portfolio companies, Laturi. Here’s Vesa and Juho after the swim.

One of the most interesting aspects of working in a VC company is the variety of things one get to see, learn and experience. During the first operational year we’ve looked through about 300 companies, including their business plans, flew around the world, prepared patent papers, crafted viral metrics, simulated business models, recruited and negotiated deals for our portfolio companies and met literally thousands of people. Yes, it’s about doing, it’s about learning, it’s about learning fast. Pretty much the same stuff our portfolio companies do – though from a different perspective.

Anyways, here’s an example of a day (today) with some stranger end of things we had a chance to experience; first some email, meetings, the normal stuff. Then an interview with Kauppalehti + swimming in the ice with the team of one of our portfolio companies, Laturi. They’re preparing for Polar Bear Pitching you see… and this sort of strange things happen pretty often.

Case: CreateTrips

CreateTrips logoPeople want to plan their trips together with family and friends. Furthermore they want to have the travel planning, tips and advices available offline without data roaming charges when they travel. CreateTrips is a social trip planner for the smart traveler. It allows users to draw information from sources such as Foursquare, Instagram and others into a digital map sheet and package it into downloadable travel plans that can be shared with fellow travelers. CreateTrips is not just another trip planner; in addition to already excellent product they have loads of differentiating features under development as well.

CreateTrips app allows easy travel planning together with the people they're traveling with, best of all you can package the travel plan, including the maps and directions into a offline accessible package and thus avoid the roaming charges.

CreateTrips app allows easy travel planning together with the people they’re traveling with, best of all you can package the travel plan, including the maps and directions into a offline accessible package and thus avoid the roaming charges.

Prior to investment CreateTrips had released the first version of their app in Apple’s New Zealand App Store which made it into Top 10 app there just in five days. Global launch is a matter of a few weeks.

”First of all, we can’t be any happier. Seed round – split between Butterfly Ventures and Rkapital – allows the three of us to continue working on CreateTrips full time. We’re building CreateTrips because this is what we love doing – building things that make it easier to do travel planning with friends. Butterfly Ventures offers us an opportunity to have a unique international connections and business development knowledge that is very rare to find from Finnish investors.” (Juha-Petteri Kukkonen, Founder of CreateTrips, Inc.)

Butterfly invested into CreateTrips because the team has excellent background for such venture, including app development, marketing and travel industry knowledge. The market potential is hundreds of millions and there’s clever business model with re-occurring revenue stream, as well as network effects that both ease up the distribution through virality and provide some long term protection from the competition. Butterfly investment will be used to validate the customer acquisition path and business model, as well as establish the required metrics to leverage the valuation up for follow-on financing rounds.

CreateTrips was founded by Juha-Petteri Kukkonen, Jarkka Salminen and Jesse Luoto. Juha-Petteri Kukkonen has been working as a strategist and director for Mindshare Worldwide and Grey Global before quitin’ his day job. Jarkka Salminen is a former rapper and independent game developer. Jesse Luoto was a developer at Activeark JWT before joining the CreateTrips team.

Case: CaddieON

CaddieOn LogoProfessional athletes use all available information to improve their performance. In golf, collecting the data requires a load of statisticians who follow the players and record each shot. Amateur golfers would love to have the same means to improve their performance as well. However, all the prior solutions either require too much concentration on manual data collection or one needs to pay big money for a live caddie to do the job. CaddieON allows automated golf data collection. The patent pending product enables the round events to be recorded shot by shot, shared and broadcasted in real time. Even better, player can compare his performance with other players and compete in all game details, not only with total round score. Instead of gadgets, you get to focus on game and play better. Now, that’s a strong value proposition for a golfer.

The CaddieOn wristband automatically detects the strokes and the club used for it. There's no easier way to keep track of your golf game play.

The CaddieOn wristband automatically detects the strokes and the club used for it. There’s no easier way to keep track of your golf game play.

CaddieON has launched the product and starting the sales in Finland during summer 2013. Prior to investment it has already announced cooperation with half a dozen golf courses in Finland and collected crowd funding from Finnish golfers worth 13 thousand euro.

”There are 60 million golfers in the world. CaddieON will lead the way in giving the golfers most value for their golf and making golf more rewarding, enjoyable and interesting than ever. The international market potential is worth several hundred millions. We wanted to have an investor who can help us with business models as well as finding the right partners. Butterfly was our best choice and shares our passion for lean customer driven development.” (Tuomo Lalli, CEO of CaddieON, Inc.)

In addition to automatically created golf game play record the CaddieOn mobile app has all the features you would expect from a golf app and there's many more coming up.

In addition to automatically created golf game play record the CaddieOn mobile app has all the features you would expect from a golf app and there’s many more coming up.

Butterfly invested into CaddieON because the patent pending product concept allows superior ease of use and thus stronger value proposition for golfers in a market worth of several hundred millions. Furthermore the business model offers several avenues for monetization. The CaddieON team has shown both the ability and commitment. Finally their ongoing crowd funding campaign has already gained significant traction among their future customers. Butterfly investment will be used to validate value proposition and establish the required metrics to leverage the valuation up for follow-on financing rounds.